Cost utility analysis costs per QALY

These preferences for the different disease states, expressed as numbers, are called utilities, and are used to qualitv-adjust or to weight the additional years of survival. The result is a quality-adjusted life-year (QALY) gained. Quality-adjusted life-years gained are also used frequently as the denominator of a cost-effectiveness ratio, as in costs per QALYs gained. 

Intervention Cost ( ) Effectiveness (life expectancy) Health state (utility ) QALYs 

Incremental cost-utility ratio 00 =550000 per QALY gained 

Source Booimun, J. L. et al., Principles of Pharmacoeconomics, Harvev Whiinev Books, Co., 1996, p. 120. Reproduced with permission. 

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