Innovative Mathematical Models to Allocate Health Care Spending

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"The Future of Health Economics" New Book Now Available

In the face of a growing focus on value and cost effectiveness, authors Stephanie Earnshaw of RTI Health Solutions, Nadia Demarteau, and Baudouin Standaert have written a chapter in the newly released book, The Future of Health Economics that introduces innovative new ways to evaluate information for making health care spending decisions. Chapter 15 addresses emerging pharmacoeconomics issues such as risk-sharing, alternative pricing models, and the potential impact of personalized medicine. Authors address the changing role of government and regulators as well.

The chapter outlines the strengths and weaknesses in existing cost-effectiveness analyses and illustrate how mathematical programming applications can inform decisions about the spending of limited health care dollars. Authors present the general framework of a mathematical program and the context of how and when it is applied. Readers are then guided through two examples.

Stephanie Earnshaw, Vice President of Health Economics at RTI Health Solutions, has developed innovative mathematical programming models to allocate prevention resource and competing interventions in the presences of limited budgets. Earnshaw says, “As the use of decision modeling becomes more mature in healthcare decision making, the identification of the need to solve different healthcare problems becomes more prevalent.  Mathematical programming will play an important role.”

The book, published by Gower Publishing, is available on leading commercial bookseller websites. It may be ordered online at



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