Consider a Hypothetical Example in Which a Patient Has a Condition

Consider a hypothetical example in which a patient has a condition in which she can expect to live only 2 more years on medications, with her quality of life reduced to 50% during those 2 years. With successful surgery as an alternative, she can expect instead to live 3 years with a better quality of life, 90%. Surgical mortality rate is 1% and the surgery is successful half the time. Using a 5% time discount rate, a student in health economics class correctly sets up the analysis.
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-If the patient decides to have the surgery, the net gain in discounted QALYs with surgery (compared to the baseline option of taking medications instead) is

A) 2.58.
B) 1.77.
C) 0.98.
D) 0.79
E) 0.48.

Correct Answer:

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