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Clinical Economics Sections
Author Bio
Introduction
Model of Economic Analysis
Basic Principles of Costing
Perspectives
Types of Analysis

Marginal and Incremental Analysis

Economic Efficiency
Currently selected section: Sensitivity Analysis

Discounting

Conclusion
Case Study 1
Case Study 2
Acknowledgements


Chapter 12: Clinical Economics: Sensitivity Analysis
         What is Sensitivity Analysis?

No matter how well-executed or comprehensive an economic evaluation, the data on costs and outcomes will inevitably contain various degrees of uncertainty and potential bias. Investigators often make best estimates of unknown variables based on available information from experts and the literature.

Sensitivity analyses are performed to test the robustness of study results and conclusions when these underlying assumptions or estimates are varied. This process reveals the degree of uncertainty, imprecision, or methodological controversy in the evaluation.

Examples of questions addressed in sensitivity analysis include the following:

  • What if a discount rate of 6% was used instead of 2%?
  • What if the compliance rate for influenza vaccination was 10% higher than originally assumed?
  • What if the per diem hospital cost underestimated the true economic cost of the health care program by $100?
  • What if indirect and intangible costs were not considered?
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