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The following information has been gathered on the costs and effectiveness of the two treatments, A and B. In this problem, costs and consequences are
The following information has been gathered on the costs and effectiveness of the two treatments, A and B. In this problem, costs and consequences are not discounted.
Treatment A | Treatment B | |
Mortality rate | 5% | 2% |
Life expectancy for survivors | 20 years | 10 years |
Initial treatment cost | $10,000 | $5,000 |
Follow up costs, year 1 | $5,000 | $2,000 |
Annual follow up costs, all subsequent years | $1,000 | $500 |
Which treatment should be undertaken?
please explain your decision
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