Question

Given:

Treatment 1 cost = $4,000, survival rate = 60%

Treatment 2 cost = $3,000, survival rate = 58%

Treatment 3 cost = $10,000, survival rate = 90%

Treatment 4 cost = $5,000, survival rate = 58%

Treatment 5 cost = $2,000, survival rate = 55%

Treatment 6 cost = $2,000, survival rate = 54%

11. What are the obviously dominated treatments if any?

1 and 2

3 and 5

4 and 6

1 and 3

4 only

2.

What is the chronology of treatments left as preparation for ICER analysis?

5 then 2 then 1

3 then 1 then 2 then 5

2 then 5 then 1 then 3

5 then 2 then 3 then 1

5 then 2 then 1 then 3

Answer 1

11. 4 and 6

Treatment 4 costs $5000 and success rate is 58%. Treatment 2 gives the same success rate at a lower cost of $3000. Hence Treatment 4 is dominated by Treatment 2.

Treatment 6 costs $2000 and success rate is 54%. Treatment 5 costs the same, but provides a higher success rate of 55%. Hence, Treatment 6 is dominated by Treatment 5.

12. 5 then 2 then 1 then 3

ICER stands for Incremental Cost Effectiveness Ratio. It measures how much incremental cost is incurred for additional increase in success rate.

Where C represent the cost and E represent the effectiveness (success rate)

We need to order the treatments in the increasing order of effectiveness (or success rates).

Hence, the Order is Treatment 5 (E =55%), Treatment 2 (E =58%), Treatment 1 (E=60%) and Treatment 3 (E=90%)