Question
1) What is PreventInfects quality added compared to no treatment? The average expected cost of care per patient with no treatment is $15,000 times the
1) What is PreventInfects quality added compared to no treatment? The average expected cost of care per patient with no treatment is $15,000 times the probability of getting the infection which is 0.4 and the answer is $6,000 plus the cost of no treatment which is zero! The average expected cost of care per patient with PreventInfect treatment is $5,000 times the probability of getting an infection with the treatment which is 0.1 and the answer is $500 plus the per patient cost of the PreventInfect treatment which is $2,000 so the total answer is $2,500.
2)What are the cost savings in using PreventInfect compared to current best treatment?
3.Using quality added pricing, what is the highest price PreventInfect could charge, the price that any higher and there would be no substantial value in the customer switching from the next best alternative?
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