# QALY Calculate Problem 03-17-13

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Category: Education

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## Presentation Transcript

### Bioethics:

Bioethics Professor Thaddeus Pope Hamline University Follow-up from Mar. 17

### PowerPoint Presentation:

Patient has serious illness. If she continues standard treatment (\$3000) she will live for 1 year and her QOL will be 0.4. If she receives new drug (\$10,000) she will live for 1 year 3 months with QOL of 0.6. What is new drug cost per QALY?

### PowerPoint Presentation:

Standard Treatment Earns 0.4 QOL for 1-year 0.4 x 1 = 0.4 Costs \$3000 for 0.4 QALY \$3000/0.4 x 2.5/2.5 = \$7500/ 1 QALY

### PowerPoint Presentation:

New Drug Earns 0.6 QOL for 1.25-year 0.6 x 1.25 = 0.75 Costs \$10,000 for 0.75 QALY \$10,000/0.75 x 1.33/1.33 = \$13,333/ 1 QALY

### PowerPoint Presentation:

If the new drug were the only Tx, might cover, because only 13,333/QALY But there is an alternative (standard Tx). So, the question is whether the EXTRA cost is worth the EXTRA effectiveness

### PowerPoint Presentation:

Marginal cost effectiveness Difference in costs / Difference in effectiveness (\$10,000 – \$3000) / (0.75 – 0.4) \$7000 / (0.35) = \$20,000/QALY