Suppose you are an administrator in a hospital and you have been tasked with making a recommendation regarding the cost-effectiveness of two alternative treatment options over a period of 10 years. Your goal is to identify the costs of investing in each option and the outcomes associated with each treatment option and eventually make a recommendation based on your findings to your board on which option to choose from a cost-effectiveness standpoint. This is the only information you have: Mortality rate QALYS Initial cost Costs in year 1 Costs between years 2 to 10 Treatment A 10% 25 $100k $30k $20k/year Treatment B 12% 23 $80k $25k $15k/year You can use any software you like (ie Excel) if needed. Please attach the file as well (or screenshot) if you used some software.
Suppose you are an administrator in a hospital and you have been tasked with making a recommendation regarding the cost-effectiveness of two alternative treatment options over a period of 10 years. Your goal is to identify the costs of investing in each option and the outcomes associated with each treatment option and eventually make a recommendation based on your findings to your board on which option to choose from a cost-effectiveness standpoint. This is the only information you have: Mortality rate QALYS Initial cost Costs in year 1 Costs between years 2 to 10 Treatment A 10% 25 $100k $30k $20k/year Treatment B 12% 23 $80k $25k $15k/year You can use any software you like (ie Excel) if needed. Please attach the file as well (or screenshot) if you used some software.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Suppose you are an administrator in a hospital and you have been tasked with making a
recommendation regarding the cost-effectiveness of two alternative treatment options over a period of
10 years. Your goal is to identify the costs of investing in each option and the outcomes associated with
each treatment option and eventually make a recommendation based on your findings to your board on
which option to choose from a cost-effectiveness standpoint. This is the only information you have:
Treatment A
Treatment B
Mortality rate
10%
12%
QALYS
25
23
Initial cost
$100k
$80k
Costs in year 1
$30k
$25k
Costs between years 2 to 10
$20k/year
$15k/year
You can use any software you like (ie Excel) if needed. Please attach the file as well (or screenshot) if you
used some software.
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