Methods for the estimation of the NICE cost effectiveness threshold

Tuesday 8 January 2013, 2.00PM to 3.15pm

Speaker(s): Karl Claxton, Professor, Department of Economics and Centre for Health Economics, University of York

Abstract: The comparison of the incremental cost effectiveness ratio (ICER) of a new technology, which is more costly than existing alternatives, with the cost-effectiveness threshold is important in assessing whether the health expected to be gained from its use exceeds the health expected to be forgone elsewhere as other NHS activities are displaced. 
Currently NICE uses a threshold range of £20,000 to £30,000 per quality adjusted life year (QALY) gained.  Explicit scientific methods are required for empirical estimation of the threshold, making best use of routinely available NHS data. 
We report on research funded by the National Institute for Health Research (NIHR) and Medical Research Council (MRC) Methodology Research Programme to develop methods to estimate the threshold.
We estimate the relationship between changes in overall NHS expenditure and changes in mortality and extend this to changes in broader health effects in the form of quality-adjusted life-years (QALYs).
The methods developed go some way to proving an empirically-based and explicit quantification of the scale of opportunity costs the NHS faces when considering whether the health benefits associated with new technologies are expected to offset the health that is likely to be forgone elsewhere in the NHS. 

Project details and downloads

Location: ARRC Auditorium A/RC/014

Karl Claxton - Methods for the estimation of the NICE cost-effectiveness threshold from Centre for Health Economics on Vimeo.

Who to contact

For more information on these seminars, contact:

Maria Jose Aragon
Jessica Ochalek

CHE Seminar Programme

  • Thursday 12 January 2017
    Jon Sussex, Chief Economist, RAND Europe
  • Thursday 9 February 2017
    Richard Murray, Kings Fund

The views expressed by Karl Claxton about the value of dentistry are not based on research conducted at the University of York nor do they reflect the views of the Centre for Health Economics, rather they reflect his own personal, and irrational, fear borne of over and early exposure to Marathon Man and Little Shop of Horrors. Similarly his expressed love of nicotine is not based on evidence of its safety or efficacy but is founded a long standing addiction.