1.Calculate the QALY for each treatment.

2.Interpret the QALY calculated for each treatment.

3.Calculate the Cost:QALY ratio for each treatment.

4.Interpret each ratio.

5.Based on QALY only, which treatment would be most effective?

6.Based on Cost:QALY, which treatment would be most effective?

Introduction The following table gives the cost, increase in life years, and the rating of quality of life for four different treatments. Treatment Cost Increase in Rating of QALY Cost: QALY Life Years Quality of Life A 4,600 16 0.16 B 8,600 18 0.22 C 12,600 22 0.28 D 10,000 20 0.25