Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The approval of a drug requires previous evaluation of its safety and efficacy. The regulatory policies adopted can be permissive (a lenient policy with higher

image text in transcribed
The approval of a drug requires previous evaluation of its safety and efficacy. The regulatory policies adopted can be permissive (a lenient policy with higher probability of acceptance) or restrictive (a very strict process with high probability of rejection). The drugs presented for their approval, independently of the regulatory policy adopted, are the same and the probability that they are safe and effective is 0.70 (PSE). Under the restrictive policy, the probability that the drug is accepted (PA) is 0.20, while this probability is 0.6 with the permissive policy. Let's accept that there are 4 possible outcomes of this regulatory process: safe and effective drug approved (SEA); safe and effective drug rejected (SER); unsafe and effective drug approved (NSEA); and unsafe and effective drug rejected (NSER). Assume that patients lose 5 quality-adjusted life years (QALYS) if untreated with the drug. If the drug is safe and effective, the patient does not lose any QALY because of the illness. If the drug is not safe and effective and it is administered nonetheless, each patient will entail a loss of 3 QALYs, in addition to the ones that the patient would have lost if not treated. Use the economic evaluation techniques to evaluate the outcomes of these two regulatory policies. Do you think you can use a cost minimization study?: Select one: O a. No, because a cost minimization study requires the use of monetary units to value both the costs and the outcomes of the different alternatives. O b. No, because the expected health outcome of both regulatory policies can be different. O c. Yes, because it is the evaluation of regulatory policies and not of health care interventions. O d. Yes, because the outcome of both regulatory policies is the same (the approval of the drug)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Capital Theory And Political Economy Prices, Income Distribution And Stability

Authors: Lefteris Tsoulfidis

1st Edition

1351239414, 9781351239417

More Books

Students also viewed these Economics questions

Question

8. What values do you want others to associate you with?

Answered: 1 week ago