a. Identify all dominant treatment alternatives. Explain why each is dominant. b. Calculate the incremental cost, incremental QALYS, and ICERS for all economically rational strategies (ICER 5 incremental cost/incremental QALYS). Why are these considered economically rational?
a. Identify all dominant treatment alternatives. Explain why each is dominant. b. Calculate the incremental cost, incremental QALYS, and ICERS for all economically rational strategies (ICER 5 incremental cost/incremental QALYS). Why are these considered economically rational?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The health authorities are considering the treatment alternatives for three types of diseases: heart disease, cancer, and
infectious disease. Each year there are 10,000 new cases of heart disease, 10,000 new cases of cancer, and 5,000 new cases
infectious disease. For each diagnosis, there are a number of mutually independent treatment alternatives (including no
treatment) as shown in the following table.
Cost per
QALYS
Treatment
treatment
gained
Heart Disease
B
100
2.
300
8.
D
400
8.
E
600
12
800
15
Cancer
200
400
10
500
12
K
600
L.
700
14
M
800
15
Infectious Disease
N
100
2.
P.
350
650

Transcribed Image Text:a. Identify all dominant treatment alternatives. Explain why each is dominant.
b. Calculate the incremental cost, incremental QALYS, and ICERS for all economically rational strategies (ICER 5 incremental
cost/incremental QALYS). Why are these considered economically rational?
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