Valuing Health

Valuing Health uses the generalized risk-adjusted cost-effectiveness (GRACE) model to demonstrate the economic value of improving the quality of life for individuals with disability or severe illness.

Charles E. Phelps, PhD, is University Professor and Provost Emeritus at the University of Rochester. He has previously served as Director of RAND's Program on Regulatory Policies and Institutions and helped found the RAND Health Insurance Study. He is the author of more than one hundred peer-reviewed articles in health economics and policy and the foundational textbook, Health Economics. He has been a member of the National Academy of Medicine since 1991 and he received the Victor R. Fuchs Award for Lifetime Contributions to the Field of Health Economics from the American Society of Health Economists in 2019. He currently serves as a consultant to the Innovation and Value Initiative and the Office of Health Economics in the United Kingdom.
Darius Lakdawalla, PhD, is Quintiles Professor of Pharmaceutical Development and Regulatory Innovation, Professor of Pharmaceutical Economics and Public Policy, and Director of Research at the Leonard D. Schaeffer Center for Health Policy and
Economics at the University of Southern California. Dr. Lakdawalla is currently a research associate at the National Bureau of Economic Research and an associate editor for The Journal of Health Economics. He previously served as Associate Editor at the Review of Economics and Statistics and the American Journal of Health Economics. The author of over one hundred peer-reviewed articles across economics, medicine, and health policy, Dr. Lakdawalla has been awarded the Garfield Prize, the Milken Institute Award for Distinguished Economic Research, and the International Society for Pharmacoeconomics and Outcomes Research (ISPOR) Excellence in Research Methodology Award.

Definitions
Preface
Chapter 1: Why We Need Cost-Effectiveness Analysis, How It Is Done, and Why It Needs Fixing
Chapter 2: Diminishing Returns...Everywhere
Chapter 3: How Uncertain Treatment Outcomes Affect Value
Chapter 4: The Total Value of Medical Interventions and the Tradeoff between Qol and Le
Chapter 5: The Consequences of Permanent Disability
Chapter 6: Multi Period Models
Chapter 7: In Search of Decision Thresholds
Chapter 8: Measuring the Risk Parameters
Chapter 9: Putting Together the Parts
Chapter 10: Transition Issues
Chapter 11: Consequences for Health Plans
Chapter 12: Welfare and Equity Implications of Grace
Chapter 13: Conclusions and Next Steps
References