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Example of Cost-effectiveness
Below is an example
that illustrates cost-effectiveness analysis from a published
study.
The economic
evaluation used computer simulation to estimate the cost-effectiveness
ratios for various antihypertensive medications from 1990 through
2010. The table below includes the projected net costs and years
of life saved for each antihypertensive treatment.
| Table
2: Projected Cost-Effectiveness of Antihypertensive
Medications
|
|---|
| Propranololhydro-chloride | Captopril | Hydrochloro-thiazide | Nifedipine | Prazosin
hydrochloride |
| $
costs of antihypertensive therapy (in billions) | 85.80 | 235.80 | 64.20 | 165.00 | 280.00 |
| $
coronary artery disease treatment savings (in billions) | -39.70 | -26.40 | -19.30 | -39.60 | -43.20 |
| $
net costs (in billions) | 46.10 | 209.40 | 44.90 | 125.40 | 236.80 |
| Years
of life saved (in millions) | 4.21 | 2.90 | 2.74 | 3.96 | 3.82 |
| Note:
costs and years of life were discounted by 5% per year. |
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Using
the formula C / E, where C equals net cost and E equals unit of
health effect achieved, the projected cost-effectiveness ratio
for the first agent, propranolol hydrochloride, would be about
$10,950 per life-year saved. The estimated net cost of propranolol
hydrochloride would be $46.1 billion, and the estimated years
of life saved as a result of treatment with propranolol hydrochloride
would be 4.21 million. Thus, $46.1 billion / 4.21 million life
years saved = $10,950 per life-year saved.
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