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Disease X is a seasonal disease that people usually get sick with in the winter, so everyone in the country takes a diagnostic test once
Disease X is a seasonal disease that people usually get sick with in the winter, so everyone in the country takes a diagnostic test once a year before the winter holidays. Big PharmaCorp tells the federal government that they can improve the sensitivity of the test to 0.95 if they provide $30 million of research funding (specificity would stay the same). The expected prevalence of Disease X nationally is 0.2 this year (with a total national population of 100 million people). Assume everyone who tests positive is given a treatment that immediately treats the disease (for free). Treating someone who is not sick does not harm them. Assume QALYs for someone without the disease is 1 and for someone with the disease is 0.8 for that year. Assuming the government is only interested in the QALYs gained in the next year, is the investment worth it given a willingness-to-pay value of $100,000/QALY gained? (Assume no need for discounting or half-cycle correction). Disease X is a seasonal disease that people usually get sick with in the winter, so everyone in the country takes a diagnostic test once a year before the winter holidays. Big PharmaCorp tells the federal government that they can improve the sensitivity of the test to 0.95 if they provide $30 million of research funding (specificity would stay the same). The expected prevalence of Disease X nationally is 0.2 this year (with a total national population of 100 million people). Assume everyone who tests positive is given a treatment that immediately treats the disease (for free). Treating someone who is not sick does not harm them. Assume QALYs for someone without the disease is 1 and for someone with the disease is 0.8 for that year. Assuming the government is only interested in the QALYs gained in the next year, is the investment worth it given a willingness-to-pay value of $100,000/QALY gained? (Assume no need for discounting or half-cycle correction)
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