Heejung Bang, Ph.D., Cornell

December 8, 2009 @ 3:30 pm - 4:30 pm
Location: BRB - 251
Biostatistics

TITLE: Analysis of (censored) medical cost data:
Methodology developments for last 10 years and some thoughts for future directions

Medical cost and quality-adjusted lifetime are important health outcomes data that are often collected from clinical trials and observational studies. Although these data look different, they share many of common statistical properties and can be understood in a unified framework. Just like standard survival data, censoring is an important issue in these data. Despite the analogy, censoring mechanism is informative, different from the traditional paradigm. It has been a decade since it was shown that use of most standard statistical techniques such as sample mean, linear regression and Kaplan-Meier estimator can be invalid. However, we often find that even experienced researchers still use traditional methods for the analysis of health outcome data in practice.

In this seminar, we will review valid methods for statistical estimation and inference that have been developed for last 10 years. Unfortunately, not all are easy or user-friendly and no commercial software is available so far. Therefore, we will suggest some methods as practical solutions for practitioners. We will also present the analytic relationships among well known medical cost estimators recently identified. Extended applications to customer lifetime value and cost-effectiveness analysis will be discussed and some new thoughts for future research directions will be suggested.

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