Health Economics ICER & Decision Trees
Calculate the ICER for surgery versus a new drug treatment of a debilitating chronic condition. Patients not cured by either intervention are offered a choice of counseling re: living with the condition or a second drug that helps manage symptoms but has a high likelihood of side effects.
- Probability of being cured after Surgery: 80%
- Probability of being cured after New Drug: 70%
- Cost Surgery: $125,000
- Cost New Drug: $50,000
- Cost Counseling: $1000
- Cost Drug 2: $1200/year for 10 yrs
- Cost S/E: $250/year for 10 years
- Prob Drug 2 after Surgery: 50%
- Prob Drug 2 after New Drug: 40%
- Probably Drug 2 Side-effect: 50%
- Utility cured: 15 QALYs
- Utility counseling: 1 QALYs
- Utility Drug 2 side-effect:5 QALYs
- Utility Drug 2 no side-effect: 10 QALYs
