Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following information has been gathered on the costs and effectiveness two different treatments, A and B. In this problem, costs and consequences are not
The following information has been gathered on the costs and effectiveness two different treatments, A and B. In this problem, costs and consequences are not discounted. 1. What is the total cost for the survivors receiving treatment A ? For decedents (assuming sudden death)? 2. What is the total cost for survivors receiving treatment B? For decedents? 3. What is the expected cost for those patients receiving treatment A ? And treatment B ? 4. What is the expected benefit for those patients receiving treatment A ? And treatment B ? 5. Calculate the incremental cost and incremental benefit of the treatment alternatives. 6. What implications/conclusions can be derived from the results of your evaluation? Utilize these equations for answering the questions above: Total Cost: For Survivors: =( Initial treatment costs )+( follow-up costs, year 1)+( follow-up costs, all subsequent years) For Decedents: =( Initial treatment costs) Expected Cost: First determine cost for survivors: (1.00 - mortality rate) x [total cost for survivors] Then add that to cost for decedents: (mortality rate) x [total cost for decedents] Expected Benefit: First determine expected benefit for survivors: (1.00 - mortality rate) [life expectancy for survivors] Then add expected benefit for decedents: (mortality rate) [0 years ] Incremental Cost: Difference between the expected costs of both treatment options Incremental Benefit: Difference between the expected benefit of both treatment options
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started