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IOE 899 Seminar Presents: Yihan Guan, Stanford University - Mar 17, 2011

Mar 17, 2011 | 5-6 PM | 1680 IOE

"Follow the Money: Monitoring Cost in Health Care Claims Data for Post-Marketing Drug Safety Surveillance"

Abstract: In this study we present a novel methodology for post-marketing drug surveillance. In stark contrast to conventional drug surveillance, which tracks hundreds of possible side effects, our method tracks only health care costs. The methodology builds on monitoring costs in health care insurance claims data based on risk-adjusted sequential analysis and detects increased spending related to drug side effects. We demonstrate the effectiveness of our method by using claims data from 2.4 million employer insured individuals, focusing on three different pairs of commonly-used drugs: Vioxx and naproxen; Zocor and Lipitor; and Avandia and Actos. The results indicate that our method outperforms traditional methods of tracking diagnosis and/or procedure codes, raising the alarm considerably earlier. Our model furthermore achieves an appropriate balance between the risk of false positives and the risk of delaying the discovery of true signals. This talk is based on a joint work with Dr. Margret Bjarnadottir.

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