Question
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 |
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5 | 23 | 77 |
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Total |
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