Framework for developing cost-effectiveness analysis threshold: the case of Egypt
- PMID: 38825614
- PMCID: PMC11144683
- DOI: 10.1186/s42506-024-00159-7
Framework for developing cost-effectiveness analysis threshold: the case of Egypt
Erratum in
-
Correction: Framework for developing cost-effectiveness analysis threshold: the case of Egypt.J Egypt Public Health Assoc. 2024 Dec 4;99(1):32. doi: 10.1186/s42506-024-00178-4. J Egypt Public Health Assoc. 2024. PMID: 39630162 Free PMC article. No abstract available.
Abstract
Background: Cost-effectiveness analyses rarely offer useful insights to policy decisions unless their results are compared against a benchmark threshold. The cost-effectiveness threshold (CET) represents the maximum acceptable monetary value for achieving a unit of health gain. This study aimed to identify CET values on a global scale, provide an overview of using multiple CETs, and propose a country-specific CET framework specifically tailored for Egypt. The proposed framework aims to consider the globally identified CETs, analyze global trends, and consider the local structure of Egypt's healthcare system.
Methods: We conducted a literature review to identify CET values, with a particular focus on understanding the basis of differentiation when multiple thresholds are present. CETs of different countries were reviewed from secondary sources. Additionally, we assembled an expert panel to develop a national CET framework in Egypt and propose an initial design. This was followed by a multistakeholder workshop, bringing together representatives of different governmental bodies to vote on the threshold value and finalize the recommended framework.
Results: The average CET, expressed as a percentage of the gross domestic product (GDP) per capita across all countries, was 135%, with a range of 21 to 300%. Interestingly, while the absolute value of CET increased with a country's income level, the average CET/GDP per capita showed an inverse relationship. Some countries applied multiple thresholds based on disease severity or rarity. In the case of Egypt, the consensus workshop recommended a threshold ranging from one to three times the GDP per capita, taking into account the incremental relative quality-adjusted life years (QALY) gain. For orphan medicines, a CET multiplier between 1.5 and 3.0, based on the disease rarity, was recommended. A two-times multiplier was proposed for the private reimbursement threshold compared to the public threshold.
Conclusion: The CET values in most countries appear to be closely related to the GDP per capita. Higher-income countries tend to use a lower threshold as a percentage of their GDP per capita, contrasted with lower-income countries. In Egypt, experts opted for a multiple CET framework to assess the value of health technologies in terms of reimbursement and pricing.
Keywords: CET; Cost-effectiveness threshold; Cost-effectiveness threshold multiplier; Egypt; Incremental relative QALY gain; Multiple thresholds.
© 2024. The Author(s).
Conflict of interest statement
Syreon Middle East was a contractual partner of Roche Egypt. A. F. and S. A. are shareholders in Syreon Middle East. N. K. is an employee at Syreon Middle East. M. S. is an employee at Roche Egypt. The remaining authors declare that they have no competing interests.
Figures




Similar articles
-
Thresholds for the value judgement of health technologies in the United Arab Emirates: a consensus approach through voting sessions.BMJ Open. 2024 Nov 4;14(11):e090344. doi: 10.1136/bmjopen-2024-090344. BMJ Open. 2024. PMID: 39496369 Free PMC article.
-
Should Hungary Pay More for a QALY Gain than Higher-Income Western European Countries?Appl Health Econ Health Policy. 2022 May;20(3):291-303. doi: 10.1007/s40258-021-00710-z. Epub 2022 Jan 18. Appl Health Econ Health Policy. 2022. PMID: 35041177 Free PMC article.
-
Estimation of the cost-effective threshold of a quality-adjusted life year in China based on the value of statistical life.Eur J Health Econ. 2022 Jun;23(4):607-615. doi: 10.1007/s10198-021-01384-z. Epub 2021 Oct 16. Eur J Health Econ. 2022. PMID: 34655364 Free PMC article.
-
Estimating the range of incremental cost-effectiveness thresholds for healthcare based on willingness to pay and GDP per capita: A systematic review.PLoS One. 2022 Apr 14;17(4):e0266934. doi: 10.1371/journal.pone.0266934. eCollection 2022. PLoS One. 2022. PMID: 35421181 Free PMC article.
-
A Systematic Review of Demand-Side Methods of Estimating the Societal Monetary Value of Health Gain.Value Health. 2021 Oct;24(10):1423-1434. doi: 10.1016/j.jval.2021.05.018. Epub 2021 Aug 6. Value Health. 2021. PMID: 34593165
Cited by
-
Cost Utility Modeling of Reducing Waiting Times for Elective Surgical Interventions: Case Study of Egyptian Initiative.Healthcare (Basel). 2025 Jul 7;13(13):1619. doi: 10.3390/healthcare13131619. Healthcare (Basel). 2025. PMID: 40648642 Free PMC article.
-
Thresholds for the value judgement of health technologies in the United Arab Emirates: a consensus approach through voting sessions.BMJ Open. 2024 Nov 4;14(11):e090344. doi: 10.1136/bmjopen-2024-090344. BMJ Open. 2024. PMID: 39496369 Free PMC article.
-
Matters arising: On the cost-effectiveness for the Italian National Health Service of nab-paclitaxel plus gemcitabine vs gemcitabine alone in metastatic pancreatic cancer.J Egypt Public Health Assoc. 2024 Dec 2;99(1):30. doi: 10.1186/s42506-024-00179-3. J Egypt Public Health Assoc. 2024. PMID: 39617863 Free PMC article. No abstract available.
-
Rare disease challenges and potential actions in the Middle East.Int J Equity Health. 2025 Feb 26;24(1):56. doi: 10.1186/s12939-025-02388-4. Int J Equity Health. 2025. PMID: 40011905 Free PMC article.
-
Correction: Framework for developing cost-effectiveness analysis threshold: the case of Egypt.J Egypt Public Health Assoc. 2024 Dec 4;99(1):32. doi: 10.1186/s42506-024-00178-4. J Egypt Public Health Assoc. 2024. PMID: 39630162 Free PMC article. No abstract available.
References
-
- Vallejo-Torres L, García-Lorenzo B, Serrano-Aguilar P. Estimating a cost-effectiveness threshold for the Spanish NHS. Health Econ. 2018;27(4):746–61. 10.1002/hec.3633. - PubMed
-
- Thokala P, Ochalek J, Leech AA, Tong T. Cost-effectiveness thresholds: the past, the present and the future. Pharmacoecon. 2018;36:509–22. 10.1007/s40273-017-0606-1. - PubMed
-
- Grosse SD. Assessing cost-effectiveness in healthcare: history of the $50,000 per QALY threshold. Expert Rev Pharmacoecon Outcomes Res. 2008. 10.1586/14737167.8.2.165. - PubMed
-
- Kniesner TJ, Viscusi WK. The value of a statistical life. Forthcoming, Oxford Research Encyclopedia of Economics and Finance. Vanderbilt Law Research Paper No. 19–15. 2019. 10.2139/ssrn.3379967.
Grants and funding
LinkOut - more resources
Full Text Sources