Consider the following information regarding two treatments:

                                           Cost,                  Effectiveness,                         HU index

Current Treatment: $100,000,            4 life-years gained,         Health utility index is 0.5 for the current treatment

New Treatment:        $250,000,          10 life-years gained,        Health utility index is 0.8 for New Treatment

 Required

A. Calculate the cost effectiveness ratio (CER). Based on your calculation, which treatment is preferable?

B. Calculate the number of QALYs for the current and new treatment, and then calculate the cost utility ratio (CUR). Based on your calculation, which treatment is preferable?

C. Should the new treatment be adopted? 

d. explain the reason?

Answer rating: 100% (QA)

The costeffectiveness ratio CER is calculated by dividing the cost of a treatment by the effectivene... View the full answer