Question

# It is currently 2020. A new treatment is being developed that is expected to provide benefits equivalent to 1,000

QALY in 2030. Researching this treatment is expected to cost a total of $1,000, $500 of which were paid five years ago(2015), and $500 of will have to be paid in 2025.Calculate the $/QALY of this treatment in present value terms. Discount QALY by 5% a year, and costs by 10% a year. Give your answer to the nearest cent (e.g. 3.33 $/QALY).

(Hints: Find the present value of the costs, then find the present value of the QALY. Divide the present value of the costs by the present value of the QALY. Note that if the present is 2020, then 2015 is in the past, and 2025 is in the future.)

$/QALY in present worth terms: Write the specific work step

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