Homework Help is Here – Start Your Trial Now!
Business
Economics
Estimate total direct costs in year 1 using the prevalence approach.

Estimate total direct costs in year 1 using the prevalence approach.

EBK HEALTH ECONOMICS AND POLICY
EBK HEALTH ECONOMICS AND POLICY
7th Edition
ISBN:9781337668279
Author:Henderson
Publisher:Henderson
Chapter14: Medical Care Systems Worldwide
Section: Chapter Questions
Problem 3QAP
See similar textbooks
icon
Related questions
Question
Let us assume that the incidence of a disease is two individuals per year. The direct costs per person per year, including the cost of the patient's time, are 5,000 m.u. annual morbidity costs are 4,000 m.u, and annual costs due to productivity losses are 10,000 m.u. All the previous monetary values refer to year 1. The life expectancy of a person who has contracted the illness is 4 years. Therefore, a person who contracts the illness at the beginning of this year (year 1) will survive until the end of year 4 and will die at the beginning of year 5. On the other hand, every year 8 individuals will have this iness and the annual mortality will be of 2 individuals (who caught the disease 4 years agol. Premature death due to the liness represents a loss of 5 life years per individual. The discount rate is 4% Estimate total direct costs in year 1 using the prevalence approach. Select one Oa Total direct costs using the prevalence approach cannot be estimated with the Information provided in this question. Db 40,000 m.u Oc 10,000 m.u. Od 20,000 ma
Transcribed Image Text:Let us assume that the incidence of a disease is two individuals per year. The direct costs per person per year, including the cost of the patient's time, are 5,000 m.u. annual morbidity costs are 4,000 m.u, and annual costs due to productivity losses are 10,000 m.u. All the previous monetary values refer to year 1. The life expectancy of a person who has contracted the illness is 4 years. Therefore, a person who contracts the illness at the beginning of this year (year 1) will survive until the end of year 4 and will die at the beginning of year 5. On the other hand, every year 8 individuals will have this iness and the annual mortality will be of 2 individuals (who caught the disease 4 years agol. Premature death due to the liness represents a loss of 5 life years per individual. The discount rate is 4% Estimate total direct costs in year 1 using the prevalence approach. Select one Oa Total direct costs using the prevalence approach cannot be estimated with the Information provided in this question. Db 40,000 m.u Oc 10,000 m.u. Od 20,000 ma
Expert Solution
steps

Step by step

Solved in 3 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Correlation Coefficient
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
EBK HEALTH ECONOMICS AND POLICY
EBK HEALTH ECONOMICS AND POLICY
Economics
ISBN:
9781337668279
Author:
Henderson
Publisher:
YUZU
Exploring Economics
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
SEE MORE TEXTBOOKS