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.
A
- Absolute Measure
- A measure of effect expressed as the actual difference between two groups, such as absolute risk reduction, rather than as a ratio.
- Actuarial Analysis
- The application of statistical methods to assess and quantify financial risk, such as the expected future cost of insurance claims.
- Additive Scale
- A framework assessing whether two exposures interact by examining whether their combined effect on absolute risk differs from the simple sum of each.
- Adjuvant Therapy
- Treatment given after a primary treatment, most commonly surgery, to eliminate remaining cancer cells and reduce the risk of recurrence.
- Advanced Outcome Assessment
- An outcome assessment applying sophisticated statistical methods, such as risk adjustment or multilevel modelling, to evaluate the results of care.
- Advanced Performance Measurement
- A performance measurement approach applying sophisticated statistical methods, such as risk-adjusted composite scoring, to evaluate provider or system performance.
- Advanced Quality Evaluation
- A quality evaluation applying sophisticated statistical methods, such as risk-adjusted outcome modelling, to assess the quality of care delivered.
- Adverse Selection
- A market condition in which individuals with private knowledge of their own higher risk are more likely to buy insurance, driving up premiums for everyone.
- Alcohol Consumption Rate
- A population-level measure of average alcohol intake, tracked as a key modifiable risk factor for chronic disease and injury.
- Alpha Spending
- A group sequential trial method allocating the overall acceptable risk of a false positive across multiple planned interim analyses.
- AMA Discharge
- A hospital discharge occurring against medical advice, where a patient chooses to leave before clinicians recommend, despite informed risk disclosure.
- Anaesthesia ConsentAnesthesia Consent
- The specific informed consent process addressing the risks, benefits, and alternatives of the anaesthesia component of a procedure.
- Antihypertensive Economics
- The application of health economic evaluation to blood pressure medications, comparing drug classes and combinations on cost and long-term cardiovascular risk reduction.
- Antiplatelet Economics
- The application of health economic evaluation to antiplatelet medications preventing clot formation, weighing cost and bleeding risk against reduced cardiovascular events.
- Atrial Fibrillation
- A common cardiac arrhythmia with rapid, irregular beating of the heart's upper chambers, carrying a substantially elevated stroke risk if untreated.
- Attack Rate
- A measure of disease incidence in a specific outbreak, the proportion of an at-risk population that develops the disease over the outbreak period.
B
- Background Hazard
- The rate of death from causes unrelated to the disease under study, applied to represent risk a patient would face regardless of the condition.
- Background Mortality
- The rate of death from causes unrelated to the disease being studied, applied within a model alongside any additional disease-specific mortality risk.
- Black Box Warning
- The most serious US drug warning type, displayed prominently in a bordered box on prescribing information, highlighting significant serious risk.
- Blended Payment
- An arrangement combining elements of two or more payment methodologies, such as fee-for-service and capitation, to balance incentives and risk.
- Blood Incompatibility
- A serious, generally preventable safety event where a patient receives a transfusion incompatible with their blood type, risking severe immune reaction.
- Blood Transfusion Consent
- The specific informed consent process addressing the risks and alternatives of receiving a blood transfusion, obtained separately given its distinct risks.
C
- Calibration Plot
- A graphical tool assessing how well a model's predicted probabilities correspond to actually observed outcome frequencies across risk groups.
- Cancer Epidemiology
- A branch of epidemiology studying the distribution, causes, and patterns of cancer occurrence, including risk factors and prevention or screening strategies.
- Capitation Payment
- The specific fixed amount received per enrolled patient under capitation, typically adjusted for risk factors such as age and health status.
- Capitation Payment System
- The overall structure governing how capitated payments are calculated and administered, covering risk adjustment, frequency, and scope of covered services.
- Cardiac Biomarker Economics
- The application of health economic evaluation to blood-based biomarker tests, such as troponin, used in diagnosing and risk-stratifying cardiovascular conditions.
E
- Essential Risk Evaluation
- A risk evaluation restricted to the core risk factors needed to support a specific decision, without a fuller multi-factor analysis.
- Evidence-Based Risk Evaluation
- A risk evaluation grounded in systematically collected epidemiological or claims data rather than assumption about which populations face elevated risk.
- Experimental Risk Evaluation
- A risk evaluation conducted under controlled or pilot conditions to test a new estimation method before wider adoption.
F
- Foundational Risk Evaluation
- The core approach to estimating the probability and size of adverse outcomes, linking historical data patterns to future risk projections.
- Fundamental Risk Evaluation
- A risk evaluation limited to the most basic estimate of an event's probability, without more elaborate modelling of contributing factors.
G
- Greater Than Minimal Risk
- A regulatory classification indicating a study's potential risks exceed those ordinarily encountered in daily life, triggering additional ethical review requirements.
I
- Integrated Risk Evaluation
- A risk evaluation combining clinical, financial, and behavioural risk factors into a single assessment rather than treating each separately.
- International Risk Evaluation
- A risk evaluation comparing risk levels for a given condition or population across different countries.
M
- Minimal Risk
- A regulatory classification indicating a study's anticipated harm probability and magnitude are no greater than those of ordinary daily life.
- Modern Risk Evaluation
- A risk evaluation incorporating current data sources, such as electronic health records and genomic data, into estimating risk.
N
- NCD Risk Factor Prevalence
- A measure of the proportion of a population exhibiting a specific modifiable risk factor for noncommunicable disease, such as tobacco use.
- Novel Risk Evaluation
- A risk evaluation employing a newly developed estimation method not previously applied to a given type of risk.
P
- Pharmacy-Based Risk Score
- A numerical estimate of expected future healthcare costs calculated using prescription drug utilisation patterns as an indicator of health status.
- Population Attributable RiskPAR
- The reduction in disease incidence within a population that would result from eliminating a harmful exposure entirely, expressed as an absolute rate.
- Practical Risk Evaluation
- A risk evaluation designed to produce a directly usable estimate for underwriting or clinical decisions, prioritising feasibility over completeness.
- Prospective Risk Adjustment
- A risk adjustment method using prior period diagnoses to predict a subsequent period's costs, unlike concurrent adjustment using same-period data.
R
- Relative RiskRR
- A measure calculated as the ratio of the risk of an outcome in an exposed or treated group to that in an unexposed group.
- Relative Risk ReductionRRR
- The proportional reduction in risk associated with a treatment, calculated as one minus the relative risk, expressed as a percentage.
- Research Risk
- The potential for physical, psychological, social, or economic harm a participant may experience from taking part in a study.
- Retrospective Risk Adjustment
- A risk adjustment method calculating payment adjustments after a coverage period ends, based on actual observed diagnoses and costs.
S
- Standard Risk Evaluation
- A risk evaluation conducted using conventional, widely accepted actuarial or epidemiological methodology, serving as the baseline for advanced approaches.
- Strategic Risk Evaluation
- A risk evaluation oriented toward informing long-term insurance or health system planning rather than a single underwriting decision.
- Systematic Risk Evaluation
- A risk evaluation conducted through a structured, replicable process, often synthesising risk data across multiple studies or populations.