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An online coaching program has been developed for patients with borderline hypertension. A total of 100 patients are randomized to receive the coaching, and 100

An online coaching program has been developed for patients with borderline hypertension. A total of 100 patients are randomized to receive the coaching, and 100 patients serve as control subjects. The start-up cost of the coaching program is $2,000 for software, hardware, and office supplies. A part-time nurse is hired for the program, with a salary of $15,000 plus 20% fringe benefits. The cost per year per patient for medication is $1000.

It has been shown that for the first year after beginning the program, 90% with coaching were not considered hypertensive (normal or borderline blood pressure) and 10% were prescribed medication to control their blood pressure. In the control group (no coaching), 70% were not considered hypertensive after 1 year and 30% were prescribed blood pressure medication. Patients in the coaching group continue to receive coaching even if they are prescribed medication.

Assuming that these probabilities are constant for the next 4 years, and assuming a 3% discount rate, answer the following questions on the cost-benefit of the program. Begin discounting in year 2; do not discount in year 1.

Complete the table of costs for the control group. Highlight the 5-year total cost of the control group, with and without discounting.

Year

Patients without Hypertension (n)

Patients with Hypertension (n)

Medication Cost before discounting

Medication Cost after discounting

Total Costs Before Discounting

Total Costs After Discounting

1

100

0

$0

$0

$0

$0

2

70

30

$1,000

X 30

$30,000

3

49

51

$1,000

X 51

$51,000

4

34

66

5

23

77

Total

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