Question

In: Economics

1.2 Suppose that you are asked to evaluate three medical interventions that reduce the number of...

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."

Solutions

Expert Solution

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.


Related Solutions

You are asked to evaluate three medical interventions that reduce the number of deaths due to...
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. Which evaluation method would you use and why?
As a medical social worker in a local hospital, you are asked to evaluate the success...
As a medical social worker in a local hospital, you are asked to evaluate the success of a group instruction diabetic control program. You randomly assign twelve diabetic patients to the group program and twelve to the more traditional personal instruction program. Over a twelve-month period you collect data on the number of hospital admissions and emergency room visits for uncontrolled blood sugar for individuals in each group. These data are presented below. You are to analyze these data using...
What nursing interventions are appropriate to reduce risk/complications of the identified medical concerns of a person...
What nursing interventions are appropriate to reduce risk/complications of the identified medical concerns of a person with Traumatic Stress Disorder with Suicidal Ideation? What psychosocial concerns do you have? Why? What nursing interventions are appropriate to reduce risk/complications of the identified psychosocial concerns? What issues/concerns take priority? Why?
Suppose that you are asked to evaluate the abilities of an individual who claims to have...
Suppose that you are asked to evaluate the abilities of an individual who claims to have perfect ESP (extrasensory perception). You decide to conduct an experiment to test this ability. You deal one card face down from a regular deck of 52 cards. The subject is then asked to say what the card is. Consider the following hypotheses: H0: The subject does not have ESP. H1: The subject does have ESP. (a) What would a Type I error be in...
Suppose you are running an online marketplace, and you want to reduce the number of returns...
Suppose you are running an online marketplace, and you want to reduce the number of returns your customers make so that you can reduce your shipping costs. How might you use the following concepts to encourage your customers to make purchases they don’t regret? Adaptation, projection bias, peak-end evaluation, pre-commitment.
The following data apply to the next three questions.          You have been asked to evaluate...
The following data apply to the next three questions.          You have been asked to evaluate the proposed acquisition of a new machine to expand your company’s product line. The machine’s purchase price is $740,000. It would be depreciated straight-line, down to zero, over four years. Purchase of the machine would require an increase in net working capital of $100,000. The machine would generate $400,000 before-tax revenues per year but would have operating costs of $150,000 per year. The machine...
Suppose it is management's goal to reduce the number of employee grievances being filed in a...
Suppose it is management's goal to reduce the number of employee grievances being filed in a unionized organization. Describe three things the human resource office can do to help meet this goal.
Suppose it is management's goal to reduce the number of employee grievances being filed in a...
Suppose it is management's goal to reduce the number of employee grievances being filed in a unionized organization. Describe three things the human resource office can do to help meet this goal.
Suppose you wanted to evaluate the performance of the three judges in Smallville, Texas: Judge Adams,...
Suppose you wanted to evaluate the performance of the three judges in Smallville, Texas: Judge Adams, Judge Brown, and Judge Carter. Over a three-year period in Smallville, Judge Adams saw 26% of the cases, Judge Brown saw 33% of the cases, and Judge Carter saw the remainder of the cases. 3% of Judge Adams’ cases were appealed, 6% of Judge Brown’s cases were appealed, and 9% of Judge Carter’s cases were appealed. (See the case problem on pages 216-218 of...
Suppose you wanted to evaluate the performance of the three judges in Smallville, Texas: Judge Adams,...
Suppose you wanted to evaluate the performance of the three judges in Smallville, Texas: Judge Adams, Judge Brown, and Judge Carter. Over a three-year period in Smallville, Judge Adams saw 26% of the cases, Judge Brown saw 34% of the cases, and Judge Carter saw the remainder of the cases. 3% of Judge Adams’ cases were appealed, 6% of Judge Brown’s cases were appealed, and 9% of Judge Carter’s cases were appealed. Given the judge in a case from this...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT