Uncertainty and value of information when allocating resources within and between healthcare programmes

Zaid Chalabi; David Epstein; Claire McKenna; Karl Claxton; (2008) Uncertainty and value of information when allocating resources within and between healthcare programmes. European journal of operational research, 191 (2). pp. 530-539. ISSN 0377-2217 DOI: 10.1016/j.ejor.2007.07.026
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A two-stage stochastic mathematical programming formulation has been developed to optimally allocate resources within and between healthcare programmes when there is an exogenous budget and the parameters of the healthcare models are variable and uncertain. This formulation solves the optimal resource allocation problem and calculates the expected value of acquiring additional information to resolve the uncertainties within the allocation. It is shown that the proposed formulation has several advantages over the chance constrained and robust mathematical programming methods. (C) 2007 Elsevier B.V. All rights reserved.

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