3. CEA Exercise (multiple conditions/budget implications) a) Conduct a CEA for the two conditions represented in the table below. Each condition has seven potential treatment options. You must identify any dominated options and calculate the ICERS associated with each of the non-dominated options. Please put your answers in the table. b) Assume you are a manager within a nationalized healthcare system like the British NHS, and your system is willing-to-pay up to $60,000 to produce an additional QALY. What treatment choice is "optimal" for each condition? c) Assume the system can expect to treat 300 patients with Condition 1 and 200 patients with Condition 2 in a typically year. What is the expected annual budget needed to finance the "optimal treatments (identified above) delivered to patients with these two conditions? d) How much larger would the annual budget need to be to treat these two conditions if your system decided to increase its WTP-for-QALYs from $60,000 to $70,000? What if it increased its WTP-for-QALYs from $70,000 to $80,000? Treatment Cost ($1000s) Dominated? QALYS ICER ($1000s) 1.5 Panel A: Treatment Options for Condition 1 (N=300 patients annually) A 0 0 B 20 30 2 D 45 2.1 E 60 F 100 3.2 G 130 3.4 2.6 1 J Panel B: Treatment Options for Condition 2 (N=200 patients annually) H 0 0 20 6 30 5.5 K 40 7 L 80 7.8 M 100 8.5 N 120 8.7 3. CEA Exercise (multiple conditions/budget implications) a) Conduct a CEA for the two conditions represented in the table below. Each condition has seven potential treatment options. You must identify any dominated options and calculate the ICERS associated with each of the non-dominated options. Please put your answers in the table. b) Assume you are a manager within a nationalized healthcare system like the British NHS, and your system is willing-to-pay up to $60,000 to produce an additional QALY. What treatment choice is "optimal" for each condition? c) Assume the system can expect to treat 300 patients with Condition 1 and 200 patients with Condition 2 in a typically year. What is the expected annual budget needed to finance the "optimal treatments (identified above) delivered to patients with these two conditions? d) How much larger would the annual budget need to be to treat these two conditions if your system decided to increase its WTP-for-QALYs from $60,000 to $70,000? What if it increased its WTP-for-QALYs from $70,000 to $80,000? Treatment Cost ($1000s) Dominated? QALYS ICER ($1000s) 1.5 Panel A: Treatment Options for Condition 1 (N=300 patients annually) A 0 0 B 20 30 2 D 45 2.1 E 60 F 100 3.2 G 130 3.4 2.6 1 J Panel B: Treatment Options for Condition 2 (N=200 patients annually) H 0 0 20 6 30 5.5 K 40 7 L 80 7.8 M 100 8.5 N 120 8.7
