In: Economics
1.2 Suppose that you are asked to evaluate three medical interventions that reduce the number of deaths due to congestive heart failure. Among these interventions, there are no influences on the patient’s quality of life. What evaluation method would you use and why? in the book's solutions: the answer is "cost Utility Analysis" why this method although the the statement said that "there are no influences on the patient’s quality of life" as i understand from lecture cost utility analysis Cost-utility analysis "is used to determine cost in terms of utilities, especially quantity and quality of life."
Cost utility analysis is used to estimate the ratio between the cost of a health-related intervention and the benefit it produces in terms of the number of years lived in full health by the beneficiaries. It allows a more complete analysis of total benefits than simple cost–benefit analysis does. In cost utility analysis the cost of an intervention with its outcome is measured in a unit called as the quality adjusted life year (QALY).
Though “cost-utility analysis "is used to determine cost in terms of utilities, especially quantity and quality of life. It is difficult to assess the impact of an intervention due to different factors such as age & specific health outcomes. Cost utility analysis is not a sufficient basis for resource allocation but it gives a better idea than previous methods. With the help of QALYs we can compare the value of interventions across available interventions. Cost utility analysis facilitates the transparency of resource allocation processes by making it clear what value is attached to specific health intervention.