1. How could the combination of the CEA, CER, and MedPac help? Discuss pros and cons.

Cost effective analysis allows us to make decision base on the cost of an intervention and the outcomes or benefits of that intervention. A cost effective ratio include average cost effective ratio (acre), incremental cost effective ratio ((icer), and marginal cost effective ratio. These various ratios allows for comparison of a new intervention versus no intervention, other comparable interventions, and future expansions respectively. The advantage of these type of analysis is it allows us to make informed decision. Cost of intervention can be compared to expected outcomes to determine if plans should move forward. The down side of these analysis is …show more content…
Even cost can be difficult to define. There are various cost that need to be measured how these are measured can vary significantly. There is most defiantly uncertainty with cost analysis. Yet carefully defining cost and outcomes can help make wiser choices which allows us to make the best use of health care dollars. MedPac is the medicare Payment advisory Commissions established by the Balanced budget act of 1997. Historically according to Milgate (2006) “Medicare payment systems are neutral and sometimes negative toward quality of care” (p. 413). The commision has since added quality measures which are directly linked to reimbursement under with The affordable Care Act. Yet as we discussed measuring outcomes can be difficult and MedPac and CMS are not immune to these issues. As Dickson (2016) relates, “The commission is concerned that the current hospital star-rating program may not fully account for the differences in the intrinsic health risks that patients bring to the hospitals: (p. ). It has also called into question the validity of MIPS as quality indicator on which payments will be based. Dickson, V. (2017). These concerns highlight the difficult