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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

image text in transcribedimage text in transcribed 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

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