2. Suppose that you are the assistant director of planning for the Kentucky Department of Health and are considering the following five diabetes noncompeting screening options, each of which focuses on reaching residents in Appalachia (exhibit 9.6). EXHIBIT 9.6 Incremental Cost-Effectiveness of Five Noncompeting Diabetes Screening Programs Program ABCDE QALYS 10 8 -5 15 20 Cost ($) 450,000 300,000 500,000 600,000 700,000 a. Can any programs be ruled out as superior or inferior choices? b. What are the cost-effectiveness ratios for each of the remaining programs? c. With a budget of $1 million, which program(s) should be selected?
2. Suppose that you are the assistant director of planning for the Kentucky Department of Health and are considering the following five diabetes noncompeting screening options, each of which focuses on reaching residents in Appalachia (exhibit 9.6). EXHIBIT 9.6 Incremental Cost-Effectiveness of Five Noncompeting Diabetes Screening Programs Program ABCDE QALYS 10 8 -5 15 20 Cost ($) 450,000 300,000 500,000 600,000 700,000 a. Can any programs be ruled out as superior or inferior choices? b. What are the cost-effectiveness ratios for each of the remaining programs? c. With a budget of $1 million, which program(s) should be selected?
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Transcribed Image Text:2. Suppose that you are the assistant director of planning for the Kentucky Department of Health and are considering
the following five diabetes noncompeting screening options, each of which focuses on reaching residents in
Appalachia (exhibit 9.6).
EXHIBIT 9.6
Incremental Cost-Effectiveness of Five Noncompeting Diabetes Screening Programs
Program
ABCDE
QALYS
10
8
-5
15
20
Cost ($)
450,000
300,000
500,000
600,000
700,000
a. Can any programs be ruled out as superior or inferior choices?
b. What are the cost-effectiveness ratios for each of the remaining programs?
c. With a budget of $1 million, which program(s) should be selected?
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Step 1: The concept of Incremental Cost-Effectiveness Ratio (ICER).
VIEWStep 2: Part (b) Calculate the Incremental Cost-Effectiveness Ratio (ICER) for each program.
VIEWStep 3: Part (a) Determine which program is superior or inferior.
VIEWStep 4: Part (c) Determine which program should be selected with $ 1 million.
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