Health Economic Assignment 2
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Health Economic Assignment 2
1. The direct costs in an economic evaluation include the all the following except
a. hospitalization
b. medical devices
c. transportation to and from the physician’s office
d. reduced productivity at work
2. The intangible costs associated with reduced quality of life include
a. Pain and suffering
b. Lost productivity at work
c. The cost of home remodeling to accommodate a physical handicap
d. Potential income lost due to premature death
3. Suppose you are asked to use the standard time trade-off approach to measuring quality of life and are given the following information. An individual is faced with living the remaining 10 years of her life suffering from severe osteoporosis. She reveals that she would be willing to give up four of those years to live the remaining six in perfect health. What is the utility of one year in the chronic health state relative to perfect health?
a. 4
b. 6
c. 0.4
d. 0.6
4. A critical assumption in the model of demand and supply is the independence of demand and supply curves. If the two are not independent, a shift in the supply curve can lead to a shift in the demand curve referred to as
a. supply-side economics.
b. supplier-induced demand.
c. supply shocks.
d. ceteris paribus.
5. Suppose the recipient of a kidney transplant has stated that she would prefer 5 years of perfect health to the 10 years she expects to live with her transplant. For this person, each of her remaining “10” years of life has a QALY value of
a. 0.5
b. 2.
c. 5.
d. 10.
6. Factors affecting medical care demand include
a. health status.
b. economic standing.
c. physician factors.
d. all of the above.
7. A physician’s ability to induce demand is greatly enhanced when
a. patients pay their own medical bills.
b. patients request follow-up visits.
c. patients have difficulty gathering and processing information.
d. the physician follows strict treatment guidelines.
Short Answer
The following table represents the costs and benefits of four alternative clinical programs designed to treat a single disease. Benefits are measured in terms of the number of lives saved. What is the ICER? (2pt)
|
Program |
Cost ($) |
Lives Saved |
|
A |
100,000 |
10 |
|
B |
100,000 |
12 |
|
C |
200,000 |
12 |
|
D |
200,000 |
15 |
Ans:
|
Program |
Cost ($) |
Lives Saved |
ICER |
|
A |
100,000 |
10 |
Dominated |
|
B |
100,000 |
12 |
- |
|
C |
200,000 |
12 |
Dominated |
|
D |
200,000 |
15 |
100,000/3 = 33,333 |
Calculation Problem
The following information has been gathered on the costs and effectiveness of the two treatments, A and B. In this
problem, costs and consequences are not discounted.
|
|
Treatment A |
Treatment B |
|
Mortality rate |
2% |
5% |
|
Life expectancy for survivors |
20 years |
10 years |
|
Initial treatment cost |
$10,000 |
$3,000 |
|
Follow up costs, year 1 |
$5,000 |
$1,000 |
|
Annual follow up costs, all subsequent years |
$1,000 |
$500 |
a. What are the expected cost and expected benefit for those patients receiving treatment A? (1 pt)
b. What are the expected cost and expected benefit for those patients receiving treatment B? (1 pt)
Answer:
a. Cost = (.02)(10,000) + (.98)(34,000) = 200 + 33,320 = 33,520
Beneift = 0.98*20 = 19.6
b.Cost = (.05)(3,000) + (.95)(8,500) = 150 + 8,075 = 8,225
Benefit= 0.95*10 = 9.5
2022-06-30