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 c infectious disease. For each diagnosis, there are a number of mutually independent treatment alternatives (including m treatment) as shown in the following table. Cost per QALYS Treatment treatment gained Heart Disease 100 2. 300 8. D 400 E 600 12 800 15 Cancer H. 200

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Chapter1: Making Economics Decisions
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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: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
c. Using separate graphs for heart disease, cancer, and infectious disease, show the alternative treatment options, label the
dominant options, and show the economically feasible alternatives. (Place QALYS on the vertical axis and cost per
treatment on the horizontal axis.)
d. The local health district has asked your opinion on the "best" strategy from a public health perspective (disease covered,
treatment strategy). What do you tell them? How much will it cost?
Transcribed Image Text:c. Using separate graphs for heart disease, cancer, and infectious disease, show the alternative treatment options, label the dominant options, and show the economically feasible alternatives. (Place QALYS on the vertical axis and cost per treatment on the horizontal axis.) d. The local health district has asked your opinion on the "best" strategy from a public health perspective (disease covered, treatment strategy). What do you tell them? How much will it cost?
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