Solution-Explain why the cost of treatment may fall over

Explain why the cost of treatment may fall over time

Reference no: EM132462285

Question 1:

Use the information below and apply the ICER formula to answer parts a thru c:

Cost Effectiveness Health Utility Index

Current Treatment $170,000 5 life-years gained .16

New Treatment $590,000 12 life-years gained .90

Problem 1: Calculate the ICER for the new treatment, without adjusting for the health utility index. Assuming the $50K benchmark, as a clinical decision maker or health policy advisor, would you recommend adopting the new treatment? Why/why not?

Note p.80 of the 5th edition: "However, many agree that if the cost of a new medical treatment is less than $50,000 per additional year of life saved it is generally viewed favorably. Cutler (2004) places the threshold at double that amount, arguing that the value of a year of life is around $100,000."

Problem 2: Explain why the cost of treatment may fall over time, and how this may influence decisions as to whether or not to adopt a new treatment that is more effective and more costly.

Reference no: EM132462285

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Explain why the cost of treatment may fall over time

Reference no: EM132462285

Reference no: EM132462285

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