Real Option Value: another dimension in Health Technology Assessment

The value that new medicines and technologies provide is the hot topic in healthcare, when considering the ongoing rise in healthcare expenses. Beyond cost-effectiveness analysis which is the basis for the economic evaluation of a new drug or technology in healthcare, it has been suggested that novel tools and elements may be needed to be explored.
Real Option Value (ROV) is an intuitive concept coming from financial sector, and in simple words refers to the influence on future options may have, a choice that someone makes today.
Li et al., discuss in a recently published article the applicability of ROV in HTA for medical technologies.
According to the authors, ROV in health technologies can arise from at least 3 different mechanisms:
  • Type 1: Prolonging survival to increase eligibility for future innovations
  • Type 2: Slowing disease progression to increase eligibility for future innovations
  • Type 3: Directly modifying the efficacy of future innovations through mechanism of action
The authors in a well-structured way provide a pragmatic guide to help involved analysts and decision makers when and how should identify ROV for emerging #medicaltechnologies.
Read the full article here