Bayesian Nonparametric Cost-Effectiveness Analyses: Causal Estimation
and Adaptive Subgroup Discovery
- URL: http://arxiv.org/abs/2002.04706v2
- Date: Tue, 8 Sep 2020 22:28:22 GMT
- Title: Bayesian Nonparametric Cost-Effectiveness Analyses: Causal Estimation
and Adaptive Subgroup Discovery
- Authors: Arman Oganisian, Nandita Mitra, Jason Roy
- Abstract summary: We develop a nonparametric Bayesian model for joint cost-survival distributions in the presence of censoring.
We use our model to assess the cost-efficacy of endometrial chemotherapy versus radiation adjuvant therapy for treating cancer in the SEER-Medicare database.
- Score: 0.0
- License: http://arxiv.org/licenses/nonexclusive-distrib/1.0/
- Abstract: Cost-effectiveness analyses (CEAs) are at the center of health economic
decision making. While these analyses help policy analysts and economists
determine coverage, inform policy, and guide resource allocation, they are
statistically challenging for several reasons. Cost and effectiveness are
correlated and follow complex joint distributions which are difficult to
capture parametrically. Effectiveness (often measured as increased survival
time) and accumulated cost tends to be right-censored in many applications.
Moreover, CEAs are often conducted using observational data with non-random
treatment assignment. Policy-relevant causal estimation therefore requires
robust confounding control. Finally, current CEA methods do not address
cost-effectiveness heterogeneity in a principled way - often presenting
population-averaged estimates even though significant effect heterogeneity may
exist. Motivated by these challenges, we develop a nonparametric Bayesian model
for joint cost-survival distributions in the presence of censoring. Our
approach utilizes a joint Enriched Dirichlet Process prior on the covariate
effects of cost and survival time, while using a Gamma Process prior on the
baseline survival time hazard. Causal CEA estimands, with policy-relevant
interpretations, are identified and estimated via a Bayesian nonparametric
g-computation procedure. Finally, we outline how the induced clustering of the
Enriched Dirichlet Process can be used to adaptively detect presence of
subgroups with different cost-effectiveness profiles. We outline an MCMC
procedure for full posterior inference and evaluate frequentist properties via
simulations. We use our model to assess the cost-efficacy of chemotherapy
versus radiation adjuvant therapy for treating endometrial cancer in the
SEER-Medicare database.
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