Game 21 · Public health and research practice

Which treatment gives the most health for the money?

QALY, DALY, cost-effectiveness and the ICER.

20 DNB questions

Play

Spend a made-up health budget

Each round asks a question a budget holder faces. Work out an ICER and decide against the threshold the round gives you, place a new option on the cost-effectiveness plane, count QALYs and DALYs, or name the type of economic evaluation. You have three lives.

3 lives leftRound 1Score 0Streak 0Best 0

Loading the first round…

Every intervention, cost, utility, disability weight, life expectancy and threshold in the game is made up for teaching.

Four types

What is compared with the cost decides the type of evaluation

All four types compare the costs of two or more options with their consequences. They differ in how the consequences are measured (HTAIn Manual, Department of Health Research, 2018).

TypeConsequences measured asResultExample
Cost-minimisationAssumed the same for all optionsThe cheapest optionTwo antibiotics with equal cure rates
Cost-effectivenessNatural units: mm Hg, cases detected, life-years gainedCost per unit of effectCost per TB case detected
Cost-utilityQALYs (DALYs are also used)Cost per QALY gainedCost per QALY of a cancer drug
Cost-benefitMoneyNet benefit in rupeesA water purification scheme
FeatureCost-effectivenessCost-benefit
OutcomeA health unit (mm Hg, cases, life-years)Rupees
AnswersWhich option buys a unit of health more cheaply?Do the benefits exceed the costs?
Compares across programmesOnly those with the same outcome unitAny, since everything is in money
Main difficultyOne outcome may not capture all effectsPutting a money value on health

ICER

The extra cost of each extra unit of health

ICER = (Cost new − Cost old) ÷ (Effect new − Effect old)

Cost
cost per patient of each option
Effect
health gained per patient, for example QALYs

The cost-effectiveness plane (Black, Med Decis Making 1990) puts the difference in effect on the x-axis and the difference in cost on the y-axis. South-east (more effective, less costly): the new option dominates. North-west (more costly, less effective): it is dominated. North-east and south-west are trade-offs, judged by comparing the ICER with a threshold.

Thresholds. WHO-CHOICE (2005) called an intervention very cost-effective below one times per-capita income per DALY averted, and cost-effective below three times. The HTAIn manual quotes these but says they should not be used alone as a justification for funding. HTAIn studies compare results with one times India's GDP per capita per QALY, and the manual notes that the HTA board has not been explicit about a threshold. The thresholds in this game are set by the round, not taken from any official rule.

QALY and DALY

Two ways to count healthy time

QALYs = Σ (utility × years in that health state)

Utility
0 = dead, 1 = full health

DALY = YLL + YLD

YLL
years of life lost: deaths × standard life expectancy at the age of death
YLD
years lived with disability: prevalent cases × disability weight

Since the Global Burden of Disease 2010 study, DALYs are calculated with no age-weighting and no discounting, and YLD is based on prevalence rather than incidence (Murray and colleagues, Lancet 2012). WHO adopted the same approach for its Global Health Estimates. Older textbooks still describe the earlier method with age-weighting and discounting.

FeatureDALYYears of potential life lost (YPLL)
CountsYears lost to early death and years lived with disabilityYears lost to early death only
Cut-offStandard life expectancy at each age, no arbitrary cut-offA set end point, commonly 65 years or life expectancy
Deaths countedAll deathsOnly deaths before the end point

Writing the answer

How to write this in a 10-mark DNB answer

  1. Define economic evaluation as a comparison of the costs and consequences of two or more options.
  2. Draw the table of the four types, with how consequences are measured and one example each.
  3. For cost-effectiveness versus cost-benefit, give a head-to-head table like the one above.
  4. Write the ICER formula, draw the cost-effectiveness plane with its four quadrants and a threshold line, and say what dominant and dominated mean.
  5. For DALY or QALY questions: give the formula, a worked example with round numbers, and state that GBD dropped age-weighting and discounting from 2010.
  6. End with the Indian context: HTAIn in the Department of Health Research, and no legislated threshold.

The one thing to remember

Cost-effectiveness asks what each extra unit of health costs. The answer is useful only against a threshold someone is willing to pay.

Past papers

DNB questions this game helps you answer

Questions from NBE theory papers for DNB, DrNB and Diploma courses, most often asked first. The tag after each question is the specialty and the year it was set.

  1. ×2Disability Adjusted Life Years (DALY).DNB Community Medicine · Jun 2022DNB Community Medicine · Jun 2018
  2. ×1Outline the factors you would consider in making a cost-benefit analysis of introducing a new component of care into your Intensive Care Unit.DNB Emergency Medicine · Oct 2023
  3. ×1Cost Effectiveness & Cost benefit analysis.DNB Hospital Administration · Dec 2022
  4. ×1Cost effectiveness analysis in Rehabilitation Medicine.DNB Physical Medicine and Rehabilitation · Jun 2022
  5. ×1Difference between Cost-Benefit Analysis and Cost-Effectiveness Analysis.DNB Community Medicine · Dec 2022
  6. ×1Disability adjusted life Years (DALY’s).DNB Hospital Administration · Dec 2022
  7. ×1Define catastrophic health expenditure. Describe the broad types of economic evaluation relevant to health programs.DNB Community Medicine · Jun 2021
  8. ×1Disability adjusted life years (DALY’s) & Quality adjusted life years (QALY’s).DNB Hospital Administration · Dec 2021
  9. ×1Cost benefit analysis and its application in medical care in hospital.DNB Community Medicine · Dec 2019
  10. ×1Problems in assessing the sensitivity and specificity of screening tests and cost benefit analysis of screening.DNB Community Medicine · Dec 2019
  11. ×1Cost Effectiveness Vs Cost Benefit.DNB Community Medicine · Jun 2018
  12. ×1Cost-effectiveness analysis and Cost-benefit analysisDNB Hospital Administration · Dec 2017
  13. ×1Difference between cost benefit and cost effective analysis.DNB Community Medicine · Dec 2017
  14. ×1Disability Adjusted Life Years (DALYs).DNB Community Medicine · Dec 2016
  15. ×1How is DALYs different from Years of Potential Life Lost (YPLL)?DNB Community Medicine · Dec 2016
  16. ×1Quality Adjusted Life Years (QALYs).DNB Hospital Administration · Apr 2016
  17. ×1Cost-Effective analysis.DNB Community Medicine · Jun 2015
  18. ×1In what ways it is different from Cost-Benefit analysis?DNB Community Medicine · Jun 2015
  19. ×1Cost effective and cost benefit analysis in health care.DNB Hospital Administration · Dec 2014
  20. ×1Quality Adjusted Life Years (QALYS)DNB Hospital Administration · Dec 2012