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Tamie is a 36-year-old smoker with a type of organ failure that reduces her quality of life to half of what it would be in

Tamie is a 36-year-old smoker with a type of organ failure that reduces her quality of life to half of what it would be in good health. Without treatment she can expect to live only two years. With a successful transplant, Tamie can expect to live four years and have a quality of life that is near (80 percent) of what she would enjoy in good health. However, the transplant costs $100,000, plus $10,000 each year for drugs and follow-up care. Assuming a 100 percent success rate for the transplant, what is the cost per additional year of life gained without discounting? What is the cost per discounted QALY gained, assuming a 5 percent time discounted rate?

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