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3.2.1 Budget allocation aInong 3 medical interventions Consider a disease that affects 1, 000 people, but can be treated by 3 mutually exclusive medical interventions
3.2.1 Budget allocation aInong 3 medical interventions Consider a disease that affects 1, 000 people, but can be treated by 3 mutually exclusive medical interventions I, II, and III. Intervention I costs $30,000 per patient, and can lengthen the patient's life by 2 years, with each year worth 0.25 perfecthealth years. Inter vention II yields 5 additional years of life, with each year worth 0.5 perfect-health years, at a cost $50, 000. Intervention III is the most expensive, but also the best availablecapable of extending each patient's life by 10 years, with each year worth 0.75 perfecthealth years, at a cost of $60, 000. Suppose initially the government's health-care budget only allows it to adopt Intervention I. 1. Now the government wants to expand its budget to save more lives. Based on cost- utility analysis (C U A) , should it go for Intervention II or Intervention III? Explain. 2. Suppose the government budget is limited to $33 million, which is insufcient to fund 100% Intervention II or 100% Intervention III. To maximize total quality life-years, how should it allocate the $33 million to the 1, 000 patients using a combination of the 3 interventions? In particular, how many patients would continue to receive Intervention I and how many would enjoy better treatmentvia, Intervention(s) II and/ or III? n n n O____-_:___. L_..A. 1."... __-___._
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