Dictionary
The Dictionary provides concise definitions of health economics terms, arranged alphabetically for quick reference. Use it to understand unfamiliar terminology or confirm the meaning of a specific term.
P
- Price CapTermPrice Ceiling, Maximum Allowed Price
- A government-imposed upper limit on the price a manufacturer may charge for a drug, used as direct price regulation in some systems.
- Price ControlTermPrice Regulation, Statutory Price Limit
- A government-imposed limit on the price charged for a good or service, set as either a ceiling or a floor.
- Price CutTermMandated Price Decrease, Price Lowering
- A reduction in a drug's price, whether voluntary or mandated, affecting a treatment's ongoing cost-effectiveness and overall budget impact.
- Price DistortionTermDistorted Pricing, Market-Signal Distortion
- A deviation of a good's market price from the level that would prevail under efficient conditions, often caused by tax, subsidy, or regulation.
- Price Elasticity of DemandConceptDemand Price Sensitivity, PED
- Price elasticity of demand measures the proportional change in quantity demanded associated with a proportional change in price, holding other determinants of demand constant.
- Price Elasticity of HealthcareTermHealthcare Demand Elasticity, RAND HIE Elasticity
- An empirical estimate of how sensitive healthcare use is to changes in out-of-pocket price, most famously quantified by a large randomised experiment.
- Price Elasticity of ICERTermICER Price Sensitivity, ICER Elasticity
- A measure of how sensitively a treatment's ICER responds to price changes, used to identify the price at which it crosses a cost-effectiveness threshold.
- Price ErosionTermPrice Decline, Post-Patent Erosion
- The gradual decline in a drug's price over time, most commonly following generic or biosimilar competition after patent exclusivity is lost.
- Price FreezeTermPrice Standstill, Frozen Pricing
- A government or payer policy temporarily preventing a manufacturer from increasing a drug's price for a specified period.
- Price GrowthTermPrice Increase, Price Rise
- The component of rising healthcare expenditure attributable to increases in input prices, such as wages or drug costs, rather than volume or intensity.
- Price IndexationTermPrice Linking, Indexed Pricing
- A mechanism tying a drug's allowed price increases to a specified inflation index, limiting growth to a predictable, generally modest rate.
- Price LinkageTermPrice Referencing, Cross-Country Price Linking
- A policy or contractual arrangement connecting a drug's price in one market to its price in another, such as international reference pricing.
- Price MonitoringTermPrice Surveillance, Price Tracking
- The ongoing tracking of a drug's price over time and across markets, used to assess trends and inform policy or negotiation.
- Price NegotiationTermPrice Bargaining, Payer-Manufacturer Bargaining
- The process through which a manufacturer and payer discuss and agree a drug's price, informed by health economic evidence and negotiating leverage.
- Price ParityTermUniform Pricing, Cross-Market Price Equality
- A contractual or policy requirement ensuring a drug's price in one market does not exceed, or fall below, its price elsewhere.
- Price ProtectionTermPrice Guarantee, Price-Increase Cap
- A contractual clause limiting or preventing future price increases beyond an agreed threshold for a specified period, giving payers cost certainty.
- Price RevisionTermPrice Adjustment, Price Review
- A formal change to a drug's established price, whether up or down, typically following periodic review or renegotiation with a payer.
- Price ScheduleTermPricing Schedule, Tariff Table
- A comprehensive listing specifying the predetermined price a payer or provider will charge or reimburse for each specific service.
- Price SpilloverTermPrice Contagion, Cross-Border Price Effect
- The effect by which a pricing decision for a drug in one market influences its price elsewhere, most notably through reference pricing links.
- Price StrategyTermPricing Strategy, Commercial Pricing Approach
- A manufacturer's overall approach to setting and managing a treatment's price across its market life and different geographic markets.
- Price TransparencyTermPricing Transparency, Open Pricing
- The degree to which actual prices paid for healthcare goods and services, including negotiated discounts, are made publicly available rather than kept confidential.
- Price-Volume AgreementTermPVA, Volume-Linked Pricing Deal
- An arrangement linking a treatment's price to its total utilisation volume, giving payers a mechanism to manage budget exposure as use expands.
- Pricing DossierTermPrice Justification Dossier, Value-and-Price File
- A comprehensive document supporting pricing and reimbursement discussions with a payer or assessment body, including clinical, economic, and comparative pricing evidence.
- Pricing PolicyTermDrug Price Policy, Medicines Price Regulation
- The overall set of rules a government or payer uses to determine or influence pharmaceutical prices within its jurisdiction.
- Pricing SubmissionTermPrice Submission Package, P&R Submission
- A formal request from a manufacturer to a payer or pricing authority seeking approval for a specific new treatment price.
- Primary CareTermFirst-Contact Care, General Practice Care
- Basic, first-contact healthcare typically provided by general practitioners, serving as the entry point into a health system and ongoing coordination.
- Primary Care CostTermGP Cost, First-Contact Care Cost
- The expense of healthcare services delivered by general practitioners and other primary care providers, a health system's typical first point of contact.
- Primary Care CoverageTermGP Coverage, First-Contact Coverage
- A measure of the extent to which a population has access to basic, first-contact healthcare services, a foundational coverage indicator.
- Primary Care ModelTermPatient-Centred Medical Home, PCMH
- An organisational approach emphasising accessible, community-based, first-contact care as the health system's foundation, with primary care coordinating overall needs.
- Primary Data CollectionTermPrimary Data Gathering, First-Hand Data Collection
- The process of gathering new data directly from original sources for a specific purpose, unlike secondary analysis of existing data.
- Primary EndpointTermPrimary Outcome, Principal Endpoint
- The main outcome measure a trial is specifically designed and statistically powered to assess, the principal basis for judging its success.
- Primary HealthcareTermPrimary Health Care, Comprehensive First-Level Care
- An approach to health system organisation emphasising accessible, community-based, first-contact care as the foundation of the entire system.
- Primary PreventionTermFirst-Level Prevention, Risk-Factor Prevention
- Preventive intervention aimed at stopping disease onset in people who have not yet developed it, unlike secondary prevention's early detection focus.
- Primary Prevention EconomicsTermEconomics of Primary Prevention, Pre-Onset Prevention Economics
- The application of health economic evaluation specifically to interventions preventing disease onset in people who have not yet developed the condition.
- Primary ResistanceTermIntrinsic Resistance, Innate Resistance
- A situation where cancer fails to respond adequately to treatment from the outset, without ever showing an initial period of disease control.
- Primary Service AreaTermCore Catchment Area, Main Service Zone
- The specific geographic area from which most of a facility's patients originate, representing its core, most immediate market.
- PRIME DesignationTermPRIME Scheme, Priority Medicines Designation
- A European Medicines Agency support scheme for medicines addressing significant unmet need, offering enhanced regulatory interaction akin to US breakthrough designation.
- Principal Agent ModelConceptAgency Model, Delegation Model
- A formal framework analysing situations where a principal delegates decisions to an agent whose interests may not fully align with their own.
- Principal ComponentConceptPCA, Component Extraction
- A principal component is an uncorrelated linear combination of centered variables whose loading vector identifies a successive direction of maximum variance in the data.
- Principal-Agent ProblemConceptAgency Cost Problem, Principal-Agent Dilemma
- The principal-agent problem arises when patients or payers rely on providers who know more than they do, act unobserved and may pursue other interests.
- Principal-Agent Problem in HealthcareConceptPhysician-Patient Agency Problem, Clinical Agency Problem
- The specific version of the principal-agent problem in the physician-patient relationship, where clinical expertise gaps create both helpful guidance and risk of distorted recommendations.
- Principal-Agent RelationshipTermAgency Relationship, Agency Arrangement
- An arrangement in which one party, the agent, acts on behalf of another, the principal, whose interests may diverge due to differing incentives or information.
- Prior AuthorizationConceptPre-Approval Requirement, Prior Auth, Preauthorization, Prior Authorization Process, Prior Authorization Requirement
- A health plan’s advance review of a patient-specific service, medicine or item against coverage criteria before it is provided.
- Prior DistributionConceptPrior, Bayesian Prior
- In Bayesian statistics, the probability distribution representing existing beliefs about a parameter before observing new data.
- Prior OddsTermPre-Data Odds, Baseline Odds
- The odds that a hypothesis is true before incorporating new evidence, the starting point for Bayesian updating alongside a likelihood ratio.
- Prior ProbabilityTermPrior Belief, Pre-Data Probability
- The probability assigned to a hypothesis before accounting for new evidence, representing existing belief later updated through Bayesian analysis.
- Prior UtilisationTermPrior Use, Previous Utilisation
- An individual's past pattern of healthcare service use, commonly used as a predictor within risk adjustment models of future costs.
- Priority RankingTermPrioritisation Ranking, Ranked Priority List
- The process of ordering competing programmes or technologies by relative value or urgency, guiding resource allocation within a fixed budget.
- Priority ReviewTermExpedited Review, Fast Regulatory Review
- A regulatory designation shortening the standard review timeline, typically granted for treatments addressing serious conditions with significant improvement over existing therapies.