Question

The following table gives the cost, increase in life years, and the rating of quality of life for four different treatments.

Table 5.1
Treatment	Cost	Increase in Life Years	Rating of Quality of Life	QALY	Cost:QALY
A	4,600	16	0.16
B	8,600	18	0.22
C	12,600	22	0.28
D	10,000	20	0.25

Instructions

Use the Assignment 5.1 Document (Word) to record your responses.

1. Calculate the QALY for each treatment.
2. Interpret each QALY calculated.
3. Calculate the Cost:QALY ratio for each treatment.
4. Interpret each ratio.
5. Based on QALY only, which treatment would be most effective?
6. Based on cost:QALY, which treatment would be most effective?

Answer 1

Treatment	Cost	Increase in life years	Rating of quality of life	QALY	Cost:QALY
A	4600	16	0.16	2.56	1796.875
B	8600	18	0.22	3.96	2171.717
C	12600	22	0.28	6.16	2045.455
D	10000	20	0.25	5	2000

QALY = increase in life years* rating of quality of life

Cost:QALY = Cost/QALY

QALYs to measure the health benefits delivered by various treatment regimens.

So treatment C has high QALY 6.16 so treatment C is better.

But if we see at Cost:QALY,then treatment A should preferred since it have least value.