3QALY Calculations A new medical intervention will cost $787,500,000 (Equivalent

Question

3QALY Calculations A new medical intervention will cost $787,500,000 (Equivalent Uniform Annual Cost) and will be administered to 10,500,000 persons per year. Clinical trials suggest the drug will affect Groups A, B, and C during the year of treatment as summarized in the below table. It is not possible to determine prior to treatment in what group any individual will fall. Fill in the table to derive the cost-effectiveness ratio of this medical intervention. Group A Group C TOTAL 100 % 10,500,000 Group B Proportion of 60% 30 % 10% Cases Number of Cases Average QALY .5 .5 .5 before treatment Average QALY after treatment .6 .3 QALYs before treatment QALYs after treatment Change in QALYs Change in Cost (S) Cost-effectiveness ratio (AS/AQALY) S787,500,000

Explanation / Answer

A B C Total Proportion of cases 60% 30% 10% 100% Number of cases 6,300,000 3,150,000 1,050,000 10,500,000 Avg QALY before treatment .5 .5 .5 Avg QALY after treatment .8 .6 .3 QALY before treatment 3,150,000 1,575,000 525,000 5,250,000 QALY after treatment 5,040,000 1,890,000 315,000 7,245,000 Change in QALY 1,890,000 315,000 -210,000 1,995,000 Change in Cost 787,500,000 Cost effectiveness ratio 394.74

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