Exercise Set 4.pdf - 2017-18 Applied Health Economics...

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2017-18 Applied Health Economics Exercise 4: Health Care Rationing Part 1 - Willingness to pay classroom experiment Complete the questionnaire handed out to you in class and return it to the tutor. Part 2: Health Care Rationing Game This exercise will: Introduce you to the ideas behind the explicit rationing of health care. Highlight the difficulties in making decisions about the delivery of health care and make explicit the opportunity costs of those decisions. Enable you to understand that rationing can and does involve value judgements. Instructions: (1) Working individually: Read the task and choose the suggestion(s) you would treat. Rank the suggestions and write down the criteria which you used for your ranking. Do not discuss this with others at this stage. (2) Working in groups of 3-4: Share your individual choices made in (1) and then negotiate a consensus group decision. Write down a consensus priority ranking as well as the final selection of treatments. (3) You discover that you made an error in calculating the surplus and that you only have $4,500 to spend. How does this change your selection made in (2)? What is a QALY? A QALY is an outcome measure that takes into account both the quantity and the quality of the extra life provided by a healthcare intervention. It is the arithmetic product of the life expectancy and the quality of the remaining years. Additional life expectancy is relatively easy to measure. Assessing the quality of that additional life is more difficult, but it can be assessed by quality of life questionnaires or by preference studies. The technical term for this preference is utility, and utility values can be gathered by asking people about their preferences for various health states. In general, utility values range from 1 (indicating perfect health) to 0 (indicating death). Negative utility values are possible for some health states. For example, some people may consider being in a permanent vegetative state less preferable than death, and so would give that health state a negative utility value.
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