Consider a hypothetical example in which a patient has a condition in which she can expect to live only 2 more years on medications, with her quality of life reduced to 50% during those 2 years. With successful surgery as an alternative, she can expect instead to live 3 years with a better quality of life, 90%. Surgical mortality rate is 1% and the surgery is successful half the time. Using a 5% time discount rate, a student in health economics class correctly sets up the analysis.
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-If the surgery costs $20,000, the cost per QALY gained is
A) $20,000.
B) less than $20,000.
C) more than $20,000, but less than $25,000.
D) more than $25,000, but less than $30,000.
E) $12,470.

Question

Consider a hypothetical example in which a patient has a condition in which she can expect to live only 2 more years on medications, with her quality of life reduced to 50% during those 2 years. With successful surgery as an alternative, she can expect instead to live 3 years with a better quality of life, 90%. Surgical mortality rate is 1% and the surgery is successful half the time. Using a 5% time discount rate, a student in health economics class correctly sets up the analysis.
‪ 
-If the surgery costs $20,000, the cost per QALY gained is
A) $20,000. 
B) less than $20,000. 
C) more than $20,000, but less than $25,000. 
D) more than $25,000, but less than $30,000. 
E) $12,470.

Quizplus · Accepted Answer

Response:
Cost of surgery $20,000
Expected net QALY gain 0.79 QALYs
Cost per QALY gained $25,316 ($20,000/.79)

Consider a Hypothetical Example in Which a Patient Has a Condition