Patients who were hospitalized for asthma were placed on a new drug. The drug re
ID: 1193816 • Letter: P
Question
Patients who were hospitalized for asthma were placed on a new drug. The drug resulted in an extra day of hospitalization (the length of stay went from 6 to 7 days), which cost $800. There were no other differences in the treatment. The drug cost $300 for the dose. As well, it took an hour of nursing time (wage = $20 per hour) and $10 in supplies to administer it. The mortality rate was 10 deaths per 100 with the drug and 12 deaths per 100 without it. What is the cost-effectiveness ratio for using the drug?
Explanation / Answer
Survival rate = 1 - Mortality rate
Survival rate without drug = 1 - (12 / 100) = 88%
Survival rate with drug = 1 - (10 / 100) = 90%
Incremental survival rate = 90% - 88% = 2%
Incremental cost with new drug = $800 + $300 + $20 + $10 = $1,130
So,
Cost effectiveness ratio = Incremental cost / Incremental survival rate
= $1,130 / 0.02 = $56,500