Pe Summary
Pe Summary
Economics: The study of allocating limited resources to     TYPES OF PHARMACOECONOMICS ANALYSIS                                                                                               CALCULATING RESULTS OF COSTS & BENEFITS
 satisfy unlimited wants.                                             COST-          COST-EFFECTIVE                     COST-UTILITY               COST-BENEFIT            COST-ILLNESS        • If retrospective data are collected for >1 year / if
                                                                  MINIMIZATION       ANALYSIS (CEA)                    ANALYSIS (CUA)              ANALYSIS (CBA)            ANALYSIS            the project inputs / outcomes are estimated for >1
 Health Economics (HE): Applies economic principles to           ANALYSIS (CMA)                                                                                                                  year into the future, it is important to adjust /
 healthcare, evaluating the costs (inputs) & consequences     Compares: Costs of Compares: Costs ($)                Compares: Costs ($)          Compares:                Measures: The          discount these costs to one point in time
 (outcomes) of interventions (drugs, devices, services).      interventions.     vs. outcomes measured              vs.         outcomes                                  total economic       • CBA can be presented in 3 formats:
                                                                                 in natural        health           measured       in utility                             burden (direct
 Pharmacoeconomics (PE): A specialized subset of HE                              units (e.g.,      mmHg             units, most commonly                                  and       indirect                       •   Difference between the
 focusing specifically on evaluating the costs & outcomes                        reduced,      life-years           Quality-Adjusted Life                                 costs)     of    a                           total costs & benefits
 of pharmaceutical interventions. It's a type of outcomes                        gained, cases cured).              Years (QALYs), which                                  specific disease                         •   Net benefits = total benefits
 research.                                                                                                          incorporate        both                               on society.                                  – total costs
                                                                                                                                                                                                NET BENEFIT
                                                                                                                    quantity & quality of                                                       CALCULATIONS       •   Net cost = total costs – total
                                                                                                                    life.                                                                                              benefits
 PURPOSE & IMPORTANCE OF PE                                   Outcomes: Assumed        Outcomes: Measurable         Outcomes: Can be             Outcomes: Benefits       Not             a                        •   Intervention is beneficial
 • To inform resource allocation decisions within             to be equivalent.        but not necessarily          different       across       are assigned a dollar    comparative                                  when: Net Benefit > 0 or Net
   healthcare institutions and systems.                                                identical.                   interventions.               value    (e.g.,   via    analysis: Doesn't                            Cost < 0
 • Helps determine coverage policies, formulary                                                                                                  Willingness-to-Pay       compare
   management, drug pricing, drug approvals, treatment                                                                                           or Human Capital         interventions but                        • Sum of the total benefits &
   guidelines, and disease management programs.                                                                                                  approach).               quantifies    the                          dividing by the total costs
 • Answers key questions like: Is a drug/service worth its                                                                                                                overall      cost     BENEFIT-TO-
                                                                                                                                                                                                                   • Can be expressed as
   cost? Should it be reimbursed? Should it be added to a                                                                                                                 impact of an          COST /
                                                                                                                                                                                                COST-TO-             benefit-to-cost ratio // cost-
   formulary?                                                                                                                                                             illness.                                   to-benefit ratio
                                                                                                                                                                                                BENEFIT
                                                                                                                                                                                                RATIOS             • Benefit-to-cost ratio > 0 or
                                                              Use: Choose        the   Use: Determine         the   Use:           Compare       Use: Determine if        Use: Indicate                              Cost-to- benefit ratio < 0
 BASIC PE EQUATION                                            cheapest        option   "value for money" (cost      interventions        with    total         benefits   resource
 • PE studies fundamentally compare the COSTS ($)             when efficacy and        per unit of effect), often   diverse           health     outweigh total costs     magnitude
                                                                                                                                                                                                                   • Rate of return that equates
   associated with providing a pharmaceutical                 safety are identical.    using the Incremental        benefits            (e.g.,   (Net Benefit > 0 or      needed, compare
                                                                                                                                                                                                                     the present value (PV) of
   product/service (Rx) to the OUTCOMES achieved.                                      Cost-Effectiveness           screening vs. surgery);      Benefit/Cost Ratio >     economic impact
                                                                                                                                                                                                                     benefits to the PV of costs
 • Outcomes can be:                                                                    Ratio (ICER).                allows      comparison       1);            allows    between
                                                                                                                                                                                                                   • Goal is to find the rate of
     o Clinical: Measurable changes in disease state.                                                               across          different    comparison        with   diseases, assess
                                                                                                                                                                                                                     return that would make the
     o Humanistic: Patient's perception, quality of life,                                                           disease areas. Uses          non-health               market potential.
                                                                                                                                                                                                INTERNAL RATE        costs & benefits equal
        functioning.                                                                                                Incremental         Cost-    programs. Ethically
                                                                                                                    Utility Ratio (ICUR).        challenging due to
                                                                                                                                                                                                OF    RETURN       • The decision rule for IRR is
     o Economic: Costs of care.                                                                                                                                                                 (IRR)
                                                                                                                                                 valuing life/health in                                              to accept all projects with
                                                                                                                                                 dollars.                                                            an IRR > Hundle rate
 COMPLEX EVALUATION CONCEPTS                                                                                                                                                                                       • Difficult    to    calculate
                                                                                                                                                                                                                     manually & requires a
                  Adjusting future costs & benefits
                                                                                                                                                                                                                     computer programme
  DISCOUNTING     to their present value.
 Cost: Represents the value of resources (inputs)            ESTIMATING DIRECT MEDICAL COSTS                             TIMING ADJUSTMENTS FOR COSTS
 consumed to produce a good or service.                      Data Sources: Measured directly (patient logs), collected
                                                             retrospectively (medical records, claims data), or             STANDARDIZATION                DISCOUNTING
 Opportunity Cost: The true economic cost; the value of      estimated from standard lists.
 the best alternative use of those resources that was                                                                     Adjusting past costs to a   Adjusting future costs and
 forgone.                                                    Estimating Specific Costs:                                   common point in time        benefits back to their
                                                                                  Use     sources      like  Average      (usually the present) to    present value because
 Costs vs. Charges: Crucially different.                                          Wholesale Price (AWP - list price)      account for inflation.      money today is worth
 • Cost: The actual expense incurred by a provider to                             or Average Manufacturer's Price         Methods include using       more than money in the
                                                              MEDICATIONS
   deliver a service.                                                             (AMP - closer to actual cost, but       unit costs or inflation     future.      A     standard
 • Charge: The price billed to a payer (often includes                            often proprietary). Source must be      indices (like MCPI/CPI).    discount rate (e.g., 3-5%)
   profit, may be higher than actual cost).                                       stated.                                                             is typically applied.
 • Reimbursement: The amount actually paid (often             MEDICAL             Use provider charge lists or payer
   lower than the charge).                                    SERVICES            fee schedules.                         COST COMPARISON TERMS
                                                                                  Calculated based on time spent
                                                              PERSONNEL           (estimated from logs or time               MARGINAL COST              INCREMENTAL COST
 COST CATEGORIZATION                                                              studies) multiplied by wage/salary.
                                                              HOSPITALIZATION     Estimated with varying precision:       Cost of producing one       The difference in total
  DIRECT             Costs associated with medical                                                                        additional   unit  of       costs    between    two
  MEDICAL            care (e.g., medications, physician                                                                   outcome/product.            competing interventions.
  COSTS              visits, hospitalizations, labs). Most      MICRO-             Detailed tracking of every specific                                Used    extensively   in
                     commonly measured.                         COSTING            service/resource used (Most                                        CEA/CUA/CBA (as part of
  DIRECT NON-        Costs            incurred          by                         precise, but resource-intensive).                                  ICER/ICUR).
  MEDICAL            patients/families directly related to      DIAGNOSTIC-        Average cost/reimbursement for a
  COSTS              treatment but not medical in               RELATED            bundle of services related to a
                     nature (e.g., travel, special diets,       GROUPS (DRGs)      specific      diagnosis/procedure
                     childcare).                                                   group (Commonly used by
  INDIRECT           Costs related to lost productivity                            payers).
  COSTS              due to illness (morbidity) or              DISEASE            Average cost per day for a specific
                     premature death (mortality).               SPECIFIC    PER    disease (More precise).
                     Non-financial costs reflecting             DIEM
  INTANGIBLE         pain, suffering, anxiety, or grief         PER DIEM           Average cost per day for any
  COSTS              associated                       with                         hospitalization (Least precise).
                     disease/treatment. Difficult to
                     quantify monetarily.
 PERSPECTIVE IN PE STUDIES
 Determines for which costs & benefits are included.
 Common perspectives:
 • Provider/Institution: Focuses on actual costs to the
     hospital/clinic.
 • Payer: Focuses on reimbursed amounts (e.g.,
     insurance company, government).
 • Patient: Focuses on out-of-pocket expenses and
     indirect costs.
 • Societal: Broadest view includes all direct (medical
     & non-medical), indirect, and potentially intangible
     costs across all parties. Often ideal but complex to
     measure fully.
3 – MEASUREMENT OF HEALTH OUTCOMES
 OUTCOME RESEARCH                                           CORE METHODOLOGIES                                                                                           HEALTH-RELATED QUALITY OF LIFE (HRQoL) & UTILITY
 • research that is concerned with the effectiveness of     2 main approaches to evaluating health interventions:                                                        • This is the foundation for measuring patient-centered outcomes.
   public health interventions & health services                                                                                                                         • Health-Related Quality of Life (HRQoL): A multi-dimensional
 • study of the effectiveness of a treatment in the real-    METHODOLOGY                         WHAT IT IS                       KEY OUTCOME MEASURED                     concept that captures an individual's / group's perceived physical
   world setting                                                                  A comparison of alternative options The main types are:                                  & mental health over time. It's about the impact of a health state on
 • measures result of various medical treatments &/                               (e.g., two different drugs) in terms of • Cost-Benefit analysis                          a person's life.
   interventions in patient populations                         ECONOMIC          their costs (inputs) and consequences • Cost-Effectiveness: Consequences               • Utility: The preference or value that a person places on a particular
 • outcomes that can be measured:                                ANALYSIS         (outputs).                                in natural units (e.g., life-years gained,     health state. It is the core component for calculating QALYs.
      ▪    survival                                                                                                         blood pressure reduction).                   • Two Theories of Utility:
      ▪    costs                                                                                                          • Cost-Utility:      Consequences         in           TYPE               MEASUREMENT                EXAMPLE
      ▪    physiological measures                                                                                           "healthy years" (usually QALYs).                  CARDINAL          Quantitative. Assigns a "My health state
      ▪    QoL                                                                                                                                                                  UTILITY         specific numerical value has a utility of 0.8."
                                                                                  Involves modelling a clinical problem A recommended course of action
                                                                DECISION          to guide decision-making when there is based on the model's output.                                           (e.g., 0 to 1 scale).
 IMPORTANCE                                                                                                                                                                                     Qualitative.          Ranks "I prefer Health
                                                                ANALYSIS          uncertainty. It uses data like disease
 • to provide better information to inform patient                                prevalence, intervention effectiveness,                                                     ORDINAL           preferences        without State A over Health
   decisions                                                                      costs, and patient utility values.                                                            UTILITY         assigning a specific State B."
 • to guide health providers                                                                                                                                                                    value.
 • to inform health policy decision
                                                            GENERIC vs. DISEASE-SPECIFIC INSTRUMENTS                                                                     HOW TO MEASURE HRQoL WEIGHTS (HEALTH UTILITY)
 BENEFITS                                                   These are the tools (questionnaires) used for indirect measurement.                                          DIRECT ELICITATION METHODS
                     • ↑ participation in decision                                                                                                                       You ask people directly to value a health state. 3 main methods are:
                       making                                INSTRUMENT                  ADVANTAGES                   DISADVANTAGES                  EXAMPLE
                     • ↑ choice regarding treatment              TYPE                                                                                                     VISUAL              A simple "feeling thermometer" where a patient
    CONSUMER           options                                                                                      May not be sensitive to    EQ-5D                      ANALOGUE            marks their health on a scale from 0 (worst
                                                                               • Broadly applicable.
                     • Assurance               regarding       GENERIC         • Allows comparison across           small but important                                   SCALE (VAS)         imaginable health) to 100 (best imaginable
                       effectiveness of interventions                            different    diseases       and    changes in a specific                                                     health).
                     • Assessment & development of                               populations.                       disease.                                                                  Asks a person to choose between 2 options:
                       interventions                           DISEASE-        More relevant and responsive to      Cannot        compare      BPH Impact Index (for                          • Option 1: A certain, intermediate health
                     • Protection from malpractice             SPECIFIC        changes in a specific condition.     results         across     prostate issues)           STANDARD               state (e.g., living with chronic pain).
                       suits                                                                                        different diseases.                                   GAMBLE (SG)         • Option 2: A "gamble" with a probability of
                     • Greater certainty regarding the                                                                                                                                           achieving perfect health & a probability of
   HEALTH-CARE         benefit of an intervention           FOCUS ON EQ-5D                                                                                                                       immediate death.
    PROVIDER         • Standards / guidelines to guide      This is the most common generic instrument.                                                                                       • The most important to know. A person is
                       clinical practice                    • What it is: A concise, self-reported health measure.                                                                               asked to trade years of life for better health
                     • Shared       responsibility    in                                                                                                                  TIME TRADE-            quality.
                       decision-making                      • What it measures: 5 Dimensions (5D): Mobility, Self-Care, Usual Activities, Pain / Discomfort & Anxiety     OFF (TTO)           • The Choice: Live for t years in a poor health
                                                              / Depression.                                                                                                                      state OR live for x years (where x < t) in
                     • Greater use of effective
  HEALTH-CARE          interventions                        • Why it's important: It's internationally compatible, widely used in research & health policy & provides                            perfect health.
  ORGANIZATION       • Discontinuation of ineffective         the utility values needed for economic evaluations.                                                                             • Calculation: The utility is calculated when
  MANAGEMENT           interventions / practice                                                                                                                                                  the person is indifferent between 2 choices:
                     • Cost savings                                                                                                                                                              Health State Score = x / t. (e.g., if someone is
                                                            ULTIMATE OUTCOME: QUALITY-ADJUSTED LIFE YEAR (QALY)                                                                                  indifferent between 10 years with diabetes &
                     • Greater ability to plan health
                                                            This is the single most important concept to understand.                                                                             8 years in perfect health, the utility for that
                       services
                     • Target research in areas of          • Definition: A generic measure of disease burden that combines both the quality (utility) and                                       diabetic state is 8/10 = 0.8).
   GOVERNMENT          greatest potential impact based        the quantity (years) of life into a single number.
                       on examination of database           • Calculation:                                                                                               INDIRECT ELICITATION METHODS
                     • Only effective pharmaceuticals                                                                                                                    You use a standardized questionnaire where the answers correspond
                       & services are subsidized                                                                                                                         to pre-determined utility scores derived from a general population
                                                                                                                                                                         survey.
                     • Cost savings                         • The QALY Scale:
                                                                         o 1 QALY = 1 year of life in perfect health.                                                    DATA SOURCES IN OUTCOME RESEARCH
                                                                         o 0 QALY = Represents death.                                                                        •   Administrative databases
                                                                         o < 0 QALY = Represents health states considered worse than death.                                  •   Clinical databases
                                                            • Purpose: QALYs are the primary outcome measure used in Cost-Utility Analysis, allowing for a                   •   Disease registers
                                                              standardized comparison of the value for money of different health interventions.                              •   Clinical trial databases
How does pharmacoepidemiology research data contributes towards
policy making?
 •   A quantitative approach to decision-making under          MARKOV MODEL                                               OTHER MODEL TYPES & SOFTWARE                            STEP-BY-STEP PROCESS OF BUILDING A MODEL
     uncertainty, where at least two options are compared      • Best for: Modeling chronic diseases or conditions        • Discrete Event Simulation (DES): A more complex        • Frame the Question: Clearly define the problem
     by evaluating their potential consequences.                  that progress over a long period, where patients can      "micro-simulation" model that tracks individual           using a framework like PICO (Population,
 •   Purpose: Models are used to synthesize data from             move between different health states over time.           patients and their unique event histories, offering       Intervention, Comparator, Outcome) and establish
     multiple sources (clinical trials, literature, expert     • Structure:                                                 greater flexibility than Markov models.                   the perspective (e.g., healthcare system or societal).
     opinion) to simulate long-term scenarios and                 • Health States: A set of mutually exclusive            • Software: Common tools used to build these models      • Structure the Problem: Choose the appropriate
     estimate costs and outcomes more comprehensively                 conditions a patient can be in (e.g., "Well,"         include TreeAge, Microsoft Excel, and R.                  model type (Decision Tree or Markov Model) based
     than a single study can.                                         "Recurrence," "Dead").                                                                                          on the nature of the disease.
 •   Contrast with Randomized Controlled Trials (RCTs):           • Cycles: The model runs in discrete time steps                                                                  • Estimate Probabilities and Outcomes: Gather data
     Models overcome the limitations of RCTs, such as                 (e.g., months or years). In each cycle, a patient                                                               from clinical trials, epidemiological studies, and
     short duration, inability to compare all relevant                can either remain in their current state or                                                                     other sources to assign values for probabilities,
     alternatives, and a study population that may not                transition to another.                                                                                          costs, and health outcomes (utilities/QALYs) to every
     reflect the real world.                                      • Transition Probabilities: The probability of                                                                      part of the model.
 •   Core Elements: Every decision model is built using               moving from one state to another during a single                                                             • Analyze the Model:
     four key inputs:                                                 cycle. These are often presented in a "transition                                                               o     For a Decision Tree, this involves "folding back"
                                                                      matrix."                                                                                                              the tree from right to left, calculating the
      MODEL               The framework of choices and         • Process: The model simulates a cohort of patients                                                                          expected costs and benefits at each chance
      STRUCTURE           events (e.g., a decision tree).         moving through the health states cycle by cycle,                                                                          node.
      PROBABILITIES       The likelihood of different             accumulating costs and health benefits along the                                                                    o     For a Markov Model, this involves running the
                          events occurring.                       way.                                                                                                                      cohort simulation to calculate the total costs
      COSTS               The resources consumed for                                                                                                                                        and benefits over the model's time horizon.
                          each event or health state.
      BENEFITS        /   The health effects, often                                                                                                                                •   Calculate the ICER: The Incremental Cost-
      OUTCOMES            measured in QALYs or life-                                                                                                                                   Effectiveness Ratio (ICER) is the primary result. It is
                          years.                                                                                                                                                       calculated as:
                                                                                                                                                                                       o    ICER = (Cost of Intervention - Cost of
 2 MAIN TYPES OF DECISION MODELS                                                                                                                                                            Comparator) / (Effect of Intervention - Effect of
 DECISION TREE                                                                                                                                                                              Comparator)
                                                                                                                                                                                       o    This ratio represents the additional cost for
 • Best for: Simple, short-term problems where events
                                                                                                                                                                                            each additional unit of health benefit (e.g., cost
     happen in a clear sequence and do not repeat.
                                                                                                                                                                                            per QALY gained). An intervention is considered
 • Structure:                                                                                                                                                                               dominant if it is both more effective and less
    o Decision Node (□): Represents a choice                                                                                                                                                costly.
           between different options (e.g., Treatment A vs.
           Treatment B).                                                                                                                                                           •   Address Uncertainty (Sensitivity Analysis): Since
     o     Chance Node (○): Represents a point of                                                                                                                                      model inputs are uncertain, sensitivity analysis is
           uncertainty where different events can occur,                                                                                                                               crucial.
           each with a specific probability.                                                                                                                                           o     One-Way SA: Changes one input variable at a
     o     Terminal Node (△): The final outcome of a                                                                                                                                         time to see its impact on the result.
           pathway, with an associated cost and health                                                                                                                                 o     Probabilistic SA (PSA): Randomly samples all
           benefit.                                                                                                                                                                          input variables from statistical distributions to
 • Limitation: Not suitable for chronic diseases with                                                                                                                                        generate a range of possible ICERs, providing a
     recurring events or conditions where time is a critical                                                                                                                                 more robust measure of confidence in the
     factor.                                                                                                                                                                                 result.
                                                                                                                                                                                   •   Discounting: For long-term models (like Markov),
                                                                                                                                                                                       future costs and benefits are "discounted" (usually
                                                                                                                                                                                       at a rate of 3% per year) to reflect their lower value in
                                                                                                                                                                                       present-day terms.
5 – INTRO, ROLE & APPLICATION OF PHARMACOEPIDEMIOLOGY
 Pharmacoepidemiology: The study of the use and               STUDY DESIGN                                            INSURANCE RECORDS                                            MAJOR ISSUES / CHALLENGES
 effects of drugs in large numbers of people. It combines
 pharmacology (study of drugs) and epidemiology (study of                      Follow groups (exposed vs.              POLICYHOLDER INFO              CLAIMS TRANSACTION                            • Quality & Availability: Data can be
 determinants,      distribution,   and     control    of                      unexposed) forward in time                                             DATA                                            incomplete, inaccurate, or biased.
 diseases/health factors in populations).                      COHORT          (prospective) or analyze past           demographics:          age,    claim details: date, type     DATA            • Linkage: Difficulty linking different
                                                               STUDIES         data (retrospective) to assess          gender, location, etc.         (e.g. medical, accident),     RELATED           data sources (e.g., pharmacy
 Goals:                                                                        outcomes. Good for examining                                           status                        ISSUES            records with clinical outcomes).
 • Quantify and understand drug use patterns                                   long-term effects/risk factors.                                        (approved/denied),      &                     • Variability: Inconsistent coding for
    (prescribing habits, appropriateness, adherence).                          Start with outcome (cases vs.                                          payment amounts                                 diagnoses and medications across
 • Identify predictors for medication use.                     CASE-CONTROL    controls) and look back for past        risk   factors:     health     claim      frequency    &                       different systems.
 • Assess beneficial and harmful effects (risks/benefits)      STUDIES         exposures. Efficient for rare           conditions & lifestyle         severity: no. of claims &                     • Confounding Variables: Other
    of drugs in real-world populations.                                        diseases/outcomes.                                                     their financial impact                          factors       (like    lifestyle      or
 • Optimize drug use, often requiring individualized           CROSS-          Assess exposure and outcome at                                                                                         comorbidities) can distort the
    therapy.                                                   SECTIONAL       a single point in time. Good for                                                                                       relationship between a drug and an
                                                               STUDIES         prevalence,            hypothesis      DATA DERIVED FROM INSURANCE RECORDS                           METHODO-          outcome.
 INDIVIDUALIZED THERAPY                                                        generation.                                                                                          LOGICAL         • Bias:      Selection      bias     (how
  • Tailoring drug therapy involves considering                                Gold standard for efficacy;                    LOSS DATA                   EXTERNAL DATA             ISSUES            participants are chosen) and
     risk/benefit ratios, potential drug interactions,                         participants randomly assigned                                               INTEGRATION                               information bias (errors in data
     patient clinical status, and specific needs.                              to intervention/control. Less           •   claim payouts: total       •   regional        health                      recording) can skew results.
  • Older Adults: A key focus due to higher drug use,          RANDOMIZED      common       for    post-approval           amounts paid out for           trends: data on                           • Causality: It is difficult to prove a
     polypharmacy risk, altered sensitivity, potential non-    CONTROLLED      safety/effectiveness studies in             claims        including        prevalent       health                      drug caused an effect in
     adherence, and increased vulnerability to side            TRIALS (RCTs)   pharmacoepidemiology due to                 reserve estimates &            conditions in specific                      observational studies.
     effects (e.g., anticholinergics, BZNs, NSAIDs).                           cost / ethics / generalizability            recovery amounts               regions                                   • Studies are often expensive and
                                                                               issues        compared          to      •   loss ratios: the ratio     •   economic indicators:                        time-consuming.
 OBJECTIVES & APPLICATIONS                                                     observational designs.                      of claims paid to              economic       factors    RESOURCE        • Requires             interdisciplinary
                                                                                                                           premiums        earned,        that might influence      &                 collaboration               (clinicians,
                       Identify adverse drug events                                                                        used        for     risk       healthcare utilization    LOGISTICAL        statisticians, policymakers).
  SAFETY               (ADEs), frequency, and risk            DATA SOURCES                                                 modelling              &       / claim rates             ISSUES          • Translating complex findings into
                       factors.                                                                                            profitability analysis                                                     clear, actionable guidance is often
                       Assess how well drugs work in           PRIMARY DATA    Collected specifically for the                                                                                         difficult.
  EFFECTIVENESS        real-world settings (vs. efficacy in                    study (e.g., surveys, trial data).
                       controlled trials).                     SECONDARY       Existing data collected for other                                                                   FUTURE DIRECTIONS
  PATTERN        OF    Describe how drugs are actually         DATA            purposes (e.g., administrative                                                                      • Big Data & AI: Using large datasets and artificial
  USE                  used in clinical practice (dosing,                      claims, EHRs, registries).                                                                            intelligence to identify patterns, improve data quality,
                       duration, patient types).                               Data from routine clinical                                                                            and predict outcomes.
                       Drug Safety Monitoring, Post-                           practice (EHRs, claims, patient                                                                     • Real-World Evidence (RWE): Increasing focus on using
                       Marketing Surveillance (detecting       REAL-WORLD      registries, wearables, social                                                                         real-world data to provide more applicable insights for
  KEY                  rare ADEs), Pharmacovigilance           DATA SOURCES    media).      Insurance       records                                                                  patient care.
  APPLICATIONS         (detecting, assessing, preventing       (RWDS)          provide claims details, payment
                                                                                                                                                                                   • Global Collaboration: Creating international networks
                       ADEs),         and        informing                     info, risk factors, and can be
                                                                                                                                                                                     to share data and expertise to address global health
                       Policymaking           (guidelines,                     linked to health trends.
                                                                                                                                                                                     challenges.
                       regulations).
 HISTORICAL CONTEXT
 • The field existed before being formally named
    "Pharmacoepidemiology" in 1984.
 • ISPE           (International       Society        for
    Pharmacoepidemiology) formed in 1989.
 • Acknowledges significant historical contributions
    from non-European civilizations, particularly the
    Islamic Golden Age (e.g., Ibn Sina/Avicenna's "Canon
    of Medicine," Ibn al-Baythar's pharmacopeia),
    building on Greek/Roman knowledge. Early records
    also exist from Mesopotamia, Egypt, China.
TUTORIAL
 Instruction: Using the decision analytic model, craft a decision-making            STEP 3: ESTIMATE THE PROBABILITIES                                                       Prevalence and Factors Associated with Prehypertension and
 process and show how the decision can be made based on the information             At each chance node, we must assign a probability.                                   Hypertension Among Adults: Baseline Findings of PURE Malaysia Cohort
 provided. Provide justifications.                                                  • Clinical Trials and Meta-Analyses: To find the probability of achieving                                          Study
 Background: A large urban hospital is developing a Clinical Decision Support           blood pressure control with each drug class.
 System (CDSS) aimed at optimizing the treatment of hypertensive patients           • Pharmacovigilance Data & Cohort Studies: To find the probability of                Background
 with type 2 diabetes mellitus (T2DM). The goal is to select the most suitable          specific adverse events. For this problem, we would need to find:                Although prehypertension and hypertension can be detected at the primary
 antihypertensive therapy for individual patients based on a balance of                 o The probability that Thiazide diuretics worsen glycemic control.               healthcare level and low-cost treatments can effectively control its
 efficacy, safety, cost, and patient-specific factors.                                  o The probability that a patient on Beta-blockers experiences a severe           complications, hypertension is still the world's leading preventable risk factor.
 Clinical Challenge: There are several classes of antihypertensive                          hypoglycemic event due to masked symptoms.                                   Therefore, the present study aimed to determine its prevalence and its risk
 medications available, including:                                                      o The probability of slowing the progression of diabetic nephropathy             factors among Malaysian adults.
       •    ACE inhibitors (e.g., Lisinopril)                                               (kidney disease) with ACE inhibitors/ARBs versus other classes.              Methods
       •    Angiotensin II receptor blockers (ARBs) (e.g., Losartan)                                                                                                     A cross-sectional study involving 7585 adults was performed covering the
       •    Calcium channel blockers (CCBs)                                         STEP 4: ESTIMATE THE VALUES (UTILITIES) OF THE OUTCOME                               rural and urban areas. Respondents with systolic blood pressure (SBP) of 120-
       •    Thiazide diuretics                                                      We need to assign a value, or "utility," to each terminal node on a scale (e.g., 0   139 mmHg and/or diastolic blood pressure (DBP) of 80-89 mmHg were
       •    Beta-blockers                                                           for worst outcome, 1 for best outcome). The value reflects the desirability of       categorized as prehypertensive, and hypertensive categorization was used for
 Additional information:                                                            that health state.                                                                   respondents with an SBP of ≥140 mmHg and/or DBP of ≥90 mmHg.
       •    ACE inhibitors and ARBs - renal protective effects.                     • Highest Value (e.g., Utility = 1.0): An outcome of "BP Controlled, No              Results
       •    Thiazide diuretics may worsen glycemic control.                            Adverse Events, with Renal Protection." This would be associated with             Respondents reported to have prehypertension and hypertension were 40.7%
       •    Beta-blockers may mask hypoglycemia symptoms                               the ACE inhibitor and ARB paths.                                                  and 38.0%, respectively. Those residing in a rural area, older age, male, family
                                                                                    • High Value (e.g., Utility = 0.9): "BP Controlled, No Adverse Events"               history of hypertension, and overweight or obese were associated with higher
                                                                                       (achieved with a CCB). This is good but lacks the specific long-term benefit      odds of prehypertension and hypertension. Unique to hypertension, the
 STEP 1: FRAME THE QUESTION                                                            for this patient group.                                                           factors included low educational level (AOR: 1.349; 95% CI: 1.146, 1.588),
 For a patient with co-existing hypertension and type 2 diabetes, which first-                                                                                           unemployment (1.350; 1.16, 1.572), comorbidity of diabetes (1.474; 1.178,
                                                                                    • Lower Value (e.g., Utility = 0.6): "BP Controlled, but with Worsened               1.844), and inadequate fruit consumption (1.253; 1.094, 1.436).
 line antihypertensive medication class (ACE inhibitor, ARB, CCB, Thiazide
                                                                                       Glycemic Control." This is a possible outcome on the Thiazide
 diuretic, or Beta-blocker) provides the optimal balance of efficacy, safety, and                                                                                        Conclusions
                                                                                       diuretic path.
 long-term benefits?                                                                                                                                                     As the prehypertensive state may affect the prevalence of hypertension,
                                                                                    • Very Low Value (e.g., Utility = 0.2): "BP Controlled, but with Severe              proactive strategies are needed to increase early detection of the disease
 STEP 2: STRUCTURE THE CLINICAL PROBLEM                                                Hypoglycemia Event." This is a risk on the Beta-blocker path.                     among specific group of those residing in a rural area, older age, male, family
 • Decision Node (Square): The tree begins with a single decision node              • Lowest Value (e.g., Utility = 0.0): "BP Uncontrolled with Severe Adverse           history of hypertension, and overweight or obese.
   representing the choice of initial therapy.                                         Event."
 • Branches (Lines): Five branches extend from this node, one for each                                                                                                   Discuss the strength and limitation of this study.
   medication class:                                                                STEP 5: ANALYZE THE TREE (CALCULATE EXPECTED VALUE)
                 o    ACE inhibitor (e.g., Lisinopril)                              The analysis involves "rolling back" the tree. For each medication branch, we         STRENGTHS                 EXPLAINATION
                 o    ARB (e.g., Losartan)                                          calculate the Expected Value (EV) by multiplying the probability of each
                 o    Calcium Channel Blocker (CCB)                                 outcome by its assigned utility and summing the results.                              Large &                   7585 adults from both rural and urban areas
                 o    Thiazide Diuretic                                             The CDSS would perform this calculation for all five drug classes. The optimal        representative            improve generalizability.
                 o    Beta-blocker                                                  decision is the one with the highest calculated Expected Value.
                                                                                                                                                                          sample
 • Chance Nodes (Circles): Each branch leads to chance nodes representing                                                                                                 Clear, standard           Used internationally accepted BP criteria for
   key clinical events and outcomes. The primary outcomes to consider are:          STEP 6: DEALING WITH UNCERTAINTY & HETEROGENEITY (SENSITIVITY
                                                                                                                                                                          definitions               prehypertension and hypertension.
                 o    Efficacy: BP Controlled vs. BP Not Controlled.                ANALYSIS)
                                                                                                                                                                          Identified multiple       Included demographic, clinical, socioeconomic,
                 o    Adverse Events: Presence vs. Absence of significant           The model's recommendation is based on estimates. A sensitivity analysis is
                                                                                                                                                                          risk factors              and lifestyle associations.
                      side effects.                                                 performed to test how robust the conclusion is. We would ask:
                                                                                                                                                                          Quantitative analysis     Provided adjusted odds ratios for clearer
 • Terminal Nodes (Triangles): Each path ends in a terminal node that               • Uncertainty: How much would our estimate for the probability of renal               (AOR & CI)                understanding of risk strength (e.g. diabetes AOR
   describes the final health state (e.g., "BP controlled, no adverse events,          protection have to decrease before an ACEi/ARB is no longer the top                                          1.474 > unemployment AOR 1.350).
   with renal protection").                                                            choice?                                                                            LIMITATIONS
                                                                                    • Heterogeneity: The "best" choice may differ by patient. For a patient with
                                                                                       brittle diabetes and frequent hypoglycemia, the negative utility of a Beta-        Cross-sectional           Cannot establish causality — only associations.
                                                                                       blocker would be even lower, making it a strongly contraindicated choice.          design
                                                                                       Conversely, for a patient with a history of angioedema (a severe side effect       Potential recall bias     Self-reported data (e.g., fruit intake, family
                                                                                       of ACE inhibitors), the model would need to exclude that option.                                             history) may be inaccurate.
                                                                                                                                                                          Limited                   Sociocultural differences may affect
                                                                                    STEP 7: INTERPRET THE RESULT                                                          generalizability          applicability in other countries.
                                                                                    For this patient with hypertension and Type 2 Diabetes, the recommended               outside Malaysia
                                                                                    first-line therapy is an ACE inhibitor or an ARB.                                     Unmeasured                Factors like salt intake, physical activity, or
                                                                                                                                                                          confounding factors       healthcare access not assessed.