A course of chemotherapy costs $8,000. If give to pt. A,it will increase the life expectancy two months, pt. sixmonths, pt. C, one month, pt. D. , five months, pt.E. , fourmonths. If all five patients re treated , what is the averagecost per year of life gained? If only one pt. can be treatedwho shall it be? If only two pts. treated, which ones? Whatis the marginal cost per addtional year of life for the paitnemost likely to benefit? Draw the total and marginal benefitcurves (lavel the Y axis "Years of life gained" and the X axis"Number of patients treated:. If all five patientsaretreated, wha tis the avrage cost per year of lifegained? The marginal cost? If pts. are treated inalphabetical order, which one determines the marginal cost per yearof life gained, pt. A, pt.E, or some otherpatient?
For A Total cost for a year of life gained=8000*12/2=$48000
For B=$16000,C=$96000,D=$19200,E=$24000
Total Cost after retreatment=$8000*5*2=$80000 Life in month gained=18*2=36 month=3 Years
Average cost per year of Life gained=80000/3=$26666.67, Marginal Cost in this case will be equal to Average cost
Since B has lowest average cost it can be treated first and second would be D
Since B is most likely to benefit marginal cost for 'B' for a year of life gained= 8000*12/6=$16000
If treated in alphabetical order till patient C we will gain life of 9 months and patient D will determine the marginal cost
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