9.5.6 Sensitivity Analysis

Knows what is Meant by the Term “Sensitivity Analysis” in the Context of an Economic Evaluation

Sensitivity analysis is an important component of economic evaluations in health care. It involves the exploration of the robustness of the results of the evaluation to changes in the assumptions or inputs used in the analysis. By varying these parameters within a reasonable range, sensitivity analysis can provide a range of plausible results and assess the impact of uncertainties on the findings of the evaluation.

Sensitivity analysis can be performed in various ways, including one-way sensitivity analysis, multi-way sensitivity analysis, and probabilistic sensitivity analysis. In one-way sensitivity analysis, one parameter is varied at a time while keeping all other variables constant. Multi-way sensitivity analysis examines the impact of varying multiple parameters simultaneously. Probabilistic sensitivity analysis involves the use of probability distributions to assign values to uncertain variables, and the results are presented as a range of values or a probability distribution.

For example, in a cost-effectiveness analysis of a new medication for a specific disease, the sensitivity analysis can examine how the results would change if the cost of the medication increased or decreased, or if the effect size of the medication was greater or smaller than originally estimated.

Sensitivity analysis is an important tool for decision-makers in health care to understand the robustness of the results of an economic evaluation and the impact of uncertainties on the conclusions.

References:

1. Drummond, M. F., Sculpher, M. J., Claxton, K., Stoddart, G. L., & Torrance, G. W. (2015). Methods for the economic evaluation of health care programmes. Oxford university press.