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Table of Contents

Introduction to Pharmacoeconomics; Decision Modeling Techniques; Multiple Criteria Decision Analysis (MCDA); Cost of Illness; Markov Modeling in Decision Analysis; Novel Modeling Methods (DICE); Retrospective Database Analysis; What is Cost-Minimization Analysis?; Cost-Effectiveness Analysis; Budget Impact Analysis; Cost-Utility Analysis: A Case Study of a Quadrivalent Human Papillomavirus Vaccine; Some Problems/Assumptions in Pharmacoeconomic Analysis; Patient-Reported Outcome Measures; Sensitivity Analysis; Use of Pharmacoeconomics in Drug Reimbursement in Australia, Canada, and the United Kingdom: What Can We Learn from International Experience?; Implementation of Value Frameworks in Reimbursement Decisions in the US and Beyond, NICE (UK) and PBAC (Australia; Pharmacoeconomics in Disease Management: Practical Applications and Persistent Challenges; Computer Aided Decision Making from Drug Discovery to Pharmacoeconomics; Speculations on the Future Challenges and Value of Pharmacoeconomics.

About the Author

Dr. Renée J. Goldberg Arnold completed her undergraduate training at the University of Maryland and received her Doctor of Clinical Pharmacy degree from the University of Southern California in Los Angeles. She also completed a one-year post-doctoral residency at University Hospital in San Diego, which is affiliated with the University of California at San Francisco School of Pharmacy. She is currently President and CEO of Arnold Consultancy & Technology LLC, as well as Adjunct Associate Professor, Department of Environmental Medicine and Public Health, Master of Public Health program, Icahn School of Medicine at Mount Sinai in New York City, where she developed and teaches the Pharmacoeconomics coursework. Her special interest in evidence-based health derives from her research that deals with use of technology to collect and/or model real-world data for use in rational decision-making by healthcare practitioners and policy makers. Dr. Arnold was previously Vice President, Health Economics and Outcomes Research at Quorum Consulting, Inc./Navigant Consulting; Principal, IMS Health (IQVIA); and President and Co-Founder of Pharmacon International, Inc. Center for Health Outcomes Excellence. She is a founding member and former Chair of the Education Committee of the International Society for Pharmacoeconomics and Outcomes Research (ISPOR). Currently, she Chairs both the ISPOR Distance Learning Program and the newly developed Open Source Models Special Interest Group. She is an author/co-author of numerous articles, book chapters and books in the areas of pharmacology, pharmacoeconomics and cost containment strategies. She is also a Reviewer for National Institutes of Health Small Business Innovation Research (SBIR) applications, for Patient-Centered Outcomes Research Institute (PCORI) applications, for the Pharmacoeconomics, Journal of Managed Care Pharmacy, Value in Health, American Journal of Pharmacy Benefits, Nature Biotechnology and Annals of Internal Medicine journals and is on the editorial board of Pharmacoeconomics Open. She is also a volunteer for the Medical Reserve Corps in New York City. In addition, Dr. Arnold is a licensed pharmacist.


The methods and application of pharmacoeconomics are rapidly evolving, so the new edition of this textbook is very timely. It provides an excellent introduction for those new to the field, whether they be students, professionals within the pharmaceutical industry, or health care professionals more generally. A particularly useful feature of the book is that it gives an introduction both to the main methods used in pharmacoeconomics studies and how these studies are used in decisions about the reimbursement or appropriate use of medicines in several countries. - Michael Drummond, Professor of Health Economics, University of YorkAfter reading this substantial book I found a new respect for the impact of the title on the world of medical care. As a clinical endocrinologist, along with most of my colleagues working to obtain the best possible therapies for our patients, I often found myself confused and frustrated by the systems (at least here in the U.S) preventing me from ordering the latest and greatest treatments. Dr. Arnold’s work provides an excellent framework to understand how some decisions are made currently in introducing new medicines, surgeries and other modalities to caregivers. Each chapter provides a concise summary of the most important principles of the quantitative and qualitative methods used both here in the United States and around the world. Several of the authors acknowledge that some of the “standards” such as QALY (quality -adjusted life year) CEA (cost effectiveness analysis) and others may not be the best method of assessing value for a new medication. The complexity of weighing the value involving a balance between economic, social and resource allocation is well addressed both with explanations and examples. I feel a bit more competent in understanding the literature that often addresses these principles after carefully absorbing this work. It will remain a handy reference for my electronic shelf (until the third edition comes out!). Kudos to all of the authors, I hope that some of the new approaches discussed become part of the mainstream to allow for a better way to encourage innovation while still maximizing our limited resources.- Jerome Fischer, Diabetes and Glandular Disease Clinic (DGDC)Renee Arnold has collaborated with some of the top experts in the discipline of pharmacoeconomics to produce a great resource which will be helpful for those new to the field and those wanting to understand more about the topic, as well as students of this discipline. Each chapter is dedicated to a particular topic and provides a clear, readable and understandable overview. Additionally, many practical, relevant and timely examples are used to illustrate the theory and really bring the material to life. These examples will be helpful to those working in this field and those seeking to understand the application of health economics. The topics covered include all of those you would expect but also stretch beyond the typical subjects to include chapters on multicriteria decision analysis, machine learning and speculations about the future. A final chapter touches on some of the learnings in the era of COVID19 and how pharmacoeconomics can help objectively determine how to efficiently invest in future healthcare.
- Louise Timlin, Senior Director - Global Health Outcomes, UK

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