Introduction to Decision Analysis

Outline

01

Introductions

02

Motivation

03

Examples of Decision Analysis

04

Workshop objectives

Course Website

What is it?

  • All course materials (slides, case studies) are posted here.

  • Our (likely evolving) schedule will also be posted here, and updated regularly.

  • Additional Resources (Quick Start Guide, Data Collection Tool, Etc.)

https://geratcliff.github.io/vital-2026-Cebu/

Introductions

01

Motivation

02

The Past Two Decades …

  • Cured Hepatitis C
  • Significantly reduced incidence of HIV
  • Potential cure for relapsed/refractory leukemia & lymphoma
  • Perfected vaccines (e.g. HPV vaccine) to prevent diseases such as cervical & other cancers
  • Strides in preventing cardiovascular disease

Despite these advances …

74%

of deaths globally are from non-communicable diseases.

86% of those deaths are in low- and middle-income countries (LMICs) Burden of NCDs like cancer, cardiovascular disease, and diabetes is growing.

Source: WHO

  • Governments cannot afford all the healthcare from which people could possibly benefit

  • Either implicitly or explicitly, we make choices about which programs to fund, which populations to screen, and which expensive new drugs to provide to which patients

Decision Analysis can help us ensure that we prioritize the highest value care possible at an efficient price point

Decision Analysis

A methodology that is uniquely beneficial when there are meaningful tradeoffs between healthcare interventions, but the best strategies for obtaining optimal outcomes are uncertain.

Decision Analysis

A methodology that is uniquely beneficial when there are meaningful tradeoffs between healthcare interventions, but the best strategies for obtaining optimal outcomes are uncertain.

Example:

The introduction of a new drug provides hope at more survival and better quality of life. However, based on the high cost it is unknown if the new drug is worth implementing over the current drug.

Value

Economists have long defined value as “outcomes relative to costs

If we only consider benefits when we define value, it’s no different than efficacy or effectiveness research.

But, we do NOT want to just consider costs without benefits!

Examples of Decision Analysis

03

Ex 1. HIV

You have been appointed as Director of a funding allocation committee responsible for prevention & treatment initiatives for HIV.

  1. How will the committee decide on the proportion of funds for prevention efforts versus treatment?

  2. Should any of the funds be used for research?

  3. How do you respond to a member who argues that the funds are better spent on childhood vaccinations?

Ex 2. Birth Defects

A hypothetical birth defect…

1 in 1,000

children

are born with it

50%

fatality rate

unless treated

Ex 2. Birth Defects

Should we test for this hypothetical birth defect?

Diagnostic test: Perfectly accurate

All newborns in whom the defect is identified can be successfully cured

The test itself can be lethal 4 in every 10,000 infants tested will die as a direct and observable result of the testing procedure

Ex 2. Birth Defects

Objective: Minimize total expected deaths

Consider a population of 100,000 newborns

Testing

Produces: (0.0004 x 100,000) = 40 expected deaths

Fewer deaths

No testing

Produces: (0.001 x 0.5 x 100,000) = 50 expected deaths

  • Anyone got a problem with this??

Different lives are lost

Testing

Virtually all 40 deaths occur in infants born without the fatal condition

No testing

All 50 expected deaths occur from “natural causes” (i.e. unpreventable birth defect)

Different lives are lost

  • “Innocent deaths” inflicted on children who had “nothing to gain” from testing program
  • We may treat one child’s death as more tolerable than some other’s – even when we have no way, before the fact, of distinguishing one infant from the other.

Ex 3. Substance use treatment in pregnancy

Another example of “Competing interests”

[Leech AA, 2024]

Ex 3. Opioid/substance use in pregnancy

[Leech AA, 2024]

Ex 3. Opioid/substance use in pregnancy

[Leech AA, 2024]

Ex 3. Opioid/substance use in pregnancy

[Leech AA, 2024]

Ex 3. Opioid/substance use in pregnancy

The clear winner is buprenorphine!!

Yes, BUT…

  • We know that clinically, patient choice is really important for retention outcomes
  • We can also see that our final conclusions are driven by the infant outcomes (methadone actually has better retention outcomes)
  • We did not simulate the birthing parent over their lifetime

The appropriate balance of competing interests between the pregnant individual and the infant is an ethical exercise that is beyond the scope of simulation modeling.

Ex 3. Opioid/substance use in pregnancy

Even if buprenorphine is “dominating” in the parlance of decision science and health economics. Requiring this treatment creates poor policy with…

Reduced Retention

Worse Outcomes

Higher Cost

…than allowing individuals to CHOOSE their preferred option.

Estimating probabilities is fundamental to decision making

  • Cannot readily obtain needed probabilities
  • Varying time periods / lengths
  • Methods to estimate probabilities

Commonality of cases

  • Unavoidable tradeoffs
  • Different perspectives may lead to different conclusions
  • Multiple competing objectives
  • Complexity
  • Uncertainty

Key Takeaways

Decision Analysis

  • Aims to inform choice under uncertainty using an explicit, quantitative approach
  • Aims to identify, measure, & value the consequences of decisions under uncertainty when a decision needs to be made, most appropriately over time.

Workshop objectives

04

Workshop Design

  1. We’re flexible – if there is a topic that is unclear to you, or that you would like expanded upon, please let us know!


2. Mixed content

  • Lectures

  • Small group case studies

  • Large group case studies and “hands-on” Amua exercises

  • Time for Capstone work and guidance

Workshop Content

Day 1

Basics of decision analysis

  • Decision trees

  • Introduction to Amua

  • Introduction to Capstone

Days 2-3

Basics of Cost-Effectiveness Analysis

  • Valuing cost and health outcomes

  • Incremental cost-effectiveness analysis

  • Introduction to Markov Modeling

Day 4-5

Advanced Topic Preview

  • Risk Matrix

  • Progressive Disease

  • Sensitivity Analysis

  • Common CEA Errors

  • DALYs in Amua

Questions?

Next: Decision Trees