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
- Access NegotiationPayer Negotiation, Price-and-Terms Negotiation
- The process by which a supplier and payer or purchaser agree the price, reimbursement, eligibility and other conditions governing patient access to a health technology.
- Acquisition CostPurchase Cost, Invoice Cost
- The price a provider or payer pays to obtain a drug or medical product, before accounting for administration or monitoring costs.
- Activity LimitationActivity Restriction, Task Difficulty
- A difficulty an individual has in executing a task or action, such as walking, as classified within the WHO framework for functioning and disability.
- Administrative CensoringEnd-of-Study Censoring, Administrative Right Censoring
- A form of right censoring occurring because a study reaches its planned end date before every participant has experienced the event of interest.
- Alliance ModelAlliance Contracting, Collaborative Alliance
- A health system arrangement where multiple independent organisations formally collaborate while retaining autonomy, coordinating around shared objectives such as purchasing power.
B
- Best PracticeLeading Practice, Proven Practice
- A method that has consistently demonstrated superior results compared to alternatives, typically identified through rigorous evidence and professional consensus.
- Best PriceLowest Acquisition Price, Manufacturer Lowest Price
- A US Medicaid pricing benchmark, the lowest price a manufacturer sells a drug to any purchaser, used to calculate required rebates.
- Blame-Free ReportingNo-Blame Reporting, Non-Punitive Reporting
- An approach to safety incident reporting emphasising systemic factors behind an error rather than assigning individual blame, encouraging more open reporting.
- Budget AmendmentBudget Revision, Budget Modification
- A formal revision to an approved budget made after the budget cycle has begun, usually to reflect unexpected cost or demand changes.
C
- Cancer SurvivorCancer Survivorship, Post-Treatment Patient
- A person who has completed active cancer treatment and continues to live beyond their diagnosis, a growing population as outcomes have improved.
- Citation TrackingCitation Chasing, Reference Tracking
- A literature search technique identifying further relevant studies by examining a key paper's reference list or later papers that cite it.
- Clinical ResponseResponder Status, Response to Treatment
- A measure of whether a patient has experienced a predefined, clinically meaningful improvement following treatment, often expressed as a responder proportion.
- CompetenceLegal Decision Authority, Decisional Standing
- A legal determination of whether an individual has the legal authority to make their own decisions, distinct from clinical capacity assessment.
- Conditional ProbabilityConditional Chance, Probability Given an Event
- Conditional probability is the probability of an event within the restricted set of outcomes in which a specified conditioning event has occurred.
D
- DemandQuantity Demanded, Purchase Willingness
- The quantity of a good or service consumers are willing and able to purchase at a given price over a specified period.
- DiscountPurchaser Price Cut, Manufacturer Reduction
- A reduction from a treatment's list price, negotiated between a manufacturer and a purchaser such as a payer or wholesaler.
- Dose EscalationDose-Escalation Study, Escalation Phase
- A structured early-phase process progressively increasing an investigational treatment's dose across successive small groups to identify the maximum tolerated dose.
E
- End-of-Life CostTerminal-Phase Cost, Last-Year-of-Life Cost
- Healthcare expenditure incurred during the final period of a patient's life, often a disproportionately large share of total lifetime healthcare costs.
- Experience GoodPost-Purchase-Assessed Good, Experience Product
- A good whose quality can only be judged by the consumer after purchase and use, unlike a search good assessed beforehand.
F
- First-Order UncertaintyStochastic Uncertainty, Individual-Level Variability
- Uncertainty arising from variation among individual patients within a modelled population, unlike parameter uncertainty concerning imperfect knowledge of a true average value.
H
- HASHaute Autorite de Sante, French National Authority for Health
- The French National Authority for Health, conducting assessment including SMR and ASMR ratings that inform pricing and reimbursement decisions.
M
- MandateCompulsory Coverage Rule, Insurance-Purchase Requirement
- A legal requirement compelling an action related to health insurance, such as individuals maintaining coverage or employers offering it.
- Metropolis-HastingsMH Algorithm, Metropolis Algorithm
- A Markov chain Monte Carlo algorithm generating samples by proposing candidate values and accepting or rejecting them by a rule ensuring convergence.
- Monte Carlo IntegrationMC Integration, Stochastic Integration
- A numerical technique estimating a complex integral's value by sampling random points repeatedly and averaging them, useful when no closed-form solution exists.
P
- Passive PurchasingPassive Reimbursement, Budget-Following Purchasing
- A financing approach in which a payer simply reimburses whatever services are provided, without negotiating price or monitoring quality.
- Phase I DesignPhase 1 Design, First-in-Human Trial Design
- The methodological structure of an early-phase trial, typically small and focused on safety, tolerability, and pharmacokinetics rather than efficacy.
- Phase I TrialPhase 1 Trial, First-in-Human Trial
- The first stage of human clinical testing for a new treatment, typically small and assessing safety, tolerability, and pharmacokinetics rather than efficacy.
- Phase II DesignPhase 2 Design, Proof-of-Concept Trial Design
- The methodological structure of a mid-stage trial, typically moderate in size, providing preliminary efficacy evidence alongside continued safety assessment.
- Phase II TrialPhase 2 Trial, Proof-of-Concept Trial
- A trial after phase I, typically enrolling a moderate number of participants to gather preliminary efficacy evidence while continuing safety monitoring.
- Phase III DesignPhase 3 Design, Confirmatory Trial Blueprint
- The methodological structure of a large-scale, definitive trial confirming efficacy and further characterising safety in a broader population, typically supporting approval.
- Phase III TrialPhase 3 Trial, Confirmatory Efficacy Trial
- A large-scale trial confirming a treatment's efficacy and further characterising its safety in a broad population, typically the primary basis for approval.
- Phase IV TrialPhase 4 Trial, Post-Approval Study
- A trial conducted after a treatment has already reached the market, gathering further safety data or fulfilling a post-marketing regulatory commitment.
- Post-Marketing SurveillancePhase IV Surveillance, Post-Approval Monitoring
- The ongoing monitoring of a drug's safety and effectiveness after regulatory approval, capturing information not always evident from pre-approval trials.
- PurchasingCommissioning, Service Procurement
- The process by which a payer allocates pooled healthcare funds to providers in exchange for delivering services to a covered population.
- Purchasing Power AdjustmentPPP Adjustment, Cross-Country Cost Adjustment
- The conversion of cost data across countries using purchasing power parity rather than market exchange rates, to reflect actual local costs.
- Purchasing Power ParityCommon-Basket Comparison, International Price Comparison
- A method of comparing economic value across countries based on the relative cost of a common basket of goods and services, rather than exchange rates.
R
- Random ErrorStochastic Error, Irreducible Noise
- Variation in results attributable to chance alone, from the statistical variability of sampling, unlike systematic error, which reflects a consistent directional bias.
- Random SearchStochastic Search, Randomised Sampling Search
- An optimisation technique evaluating an objective function at randomly sampled points in the parameter space rather than a systematic grid.
- Recommended Phase 2 DoseRP2D, Phase II Dose
- The dose identified during phase I dose-finding studies as offering the best balance of efficacy and tolerability, carried forward into phase II trials.
- Run-In PeriodLead-In Period, Pre-Randomisation Phase
- An initial trial phase, before randomisation, during which all participants receive a common intervention, used to exclude likely non-adherent or non-responsive individuals.
S
- ScopingScoping Phase, Scope Definition
- The initial assessment stage in which the specific boundaries, including technology, population, comparators, and outcomes, are formally defined.
- Seamless Trial DesignSeamless Phase 2/3 Design, Inferentially Seamless Design
- An adaptive design combining traditionally separate phase II and III trials into one continuous study, avoiding an intervening design and startup gap.
- Stochastic AnalysisStochastic Sensitivity Analysis, Random-Input Analysis
- An analysis in which a model incorporates randomness explicitly, so repeated runs under the same inputs can produce different results, unlike a deterministic model.
- Stochastic Frontier AnalysisSFA, Parametric Frontier Analysis
- A parametric method estimating relative efficiency of comparable units by modelling an efficiency frontier while accounting for random statistical noise.
- Stochastic ModelRandom Model, Probabilistic Model
- A model in which one or more inputs are random variables drawn from a probability distribution, producing a range of possible outcomes.
- Stochastic ProgrammingOptimisation under Uncertainty, Recourse Programming
- An optimisation framework incorporating parameter uncertainty directly into the process, seeking a solution that performs well across possible parameter values.
- Stochastic SimulationRandom Simulation, Probabilistic Simulation
- Stochastic simulation represents a system in which at least one event, transition, time or outcome is generated probabilistically.
- Strategic PurchasingActive Purchasing, Strategic Commissioning
- A financing approach where a payer actively negotiates prices, selects high-performing providers, and designs incentivising payment mechanisms, unlike passive purchasing.
- SurvivorshipLife After Cancer, Post-Treatment Phase
- The state of living with, through, and beyond a cancer diagnosis, covering the period from diagnosis onward regardless of ongoing treatment.
V
- Value-Based PurchasingVBP Purchasing, Value-Based Commissioning
- A purchasing approach that connects provider selection, contracting or payment to measured care quality, outcomes or efficiency for a defined population.