Consider two treatments. Treatment 1 saves one year of life at a cost of $10,000. Treatment 2 saves ten years of life at a cost of $1,000,000. Which treatment is more cost-effective? Why? Consider two treatments. Treatment 1 saves six years of quality adjusted life at a cost of $90,000. Treatment 2 saves three years of quality adjusted life at a cost of $60,000. Which treatment is preferred from a cost utility analysis perspective? Suppose Jay has been experiencing back pain and that there are two options for back pain: Treatment Regimen  Total Cost Pain Reduction Do nothing $0 0 units Cortisone injections   $600 30 units Calculate the ICER between cortisone injections and doing nothing. Jay says he is willing to pay $10 for a per unit of pain reduction. Should he choose cortisone injections? Another treatment is discovered. It costs $700 and reduces pain by 25 units. Should he choose the new treatment?

EBK HEALTH ECONOMICS AND POLICY
7th Edition
ISBN:9781337668279
Author:Henderson
Publisher:Henderson
Chapter4: Economic Evaluation In Health Care
Section: Chapter Questions
Problem 6QAP
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  1. Consider two treatments. Treatment 1 saves one year of life at a cost of $10,000. Treatment 2 saves ten years of life at a cost of $1,000,000. Which treatment is more cost-effective? Why?
  2. Consider two treatments. Treatment 1 saves six years of quality adjusted life at a cost of $90,000. Treatment 2 saves three years of quality adjusted life at a cost of $60,000. Which treatment is preferred from a cost utility analysis perspective?
  3. Suppose Jay has been experiencing back pain and that there are two options for back pain:
    Treatment Regimen  Total Cost Pain Reduction
    Do nothing $0 0 units
    Cortisone injections   $600 30 units
    1. Calculate the ICER between cortisone injections and doing nothing.
    2. Jay says he is willing to pay $10 for a per unit of pain reduction. Should he choose cortisone injections?
    3. Another treatment is discovered. It costs $700 and reduces pain by 25 units. Should he choose the new treatment?
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