ECONOMIC-EVALUATION OF CHRONIC CONDITIONS - FRAMEWORK FOR A QUASI-MARKOV PROCESS

This paper presents a general model for economic evaluation of treatme nts of chronic conditions. The model is applicable in the situation wh ere multiple possible treatments are available none of which is comple tely satisfactory by virtue of either lack of effect of adverse effect s occurring for some patients. Treatments may include any process desi gned to enable patients to manage their condition, Since none are comp letely satisfactory, the model cannot determine the 'best' treatment, merely help identify an order in which treatments should be tried. Thi s economic model must be used in conjunction with clinical or other re levant information. The model should be used to make comparisons betwe en treatment options within one discrete category. The information pro vided can thus assist allocative microeconomic decisions, where funds must be allocated between specific competing alternatives. These decis ions may apply to either purchasers or providers of health care servic es.