A new drug will extend life by 4.1 years at a quality of life of 58.7% and average life span is 74.2 and the Value of a Statistical Life is $8mn. Calculate the QALYS value (answer in dollars, 225.251)

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BlackTom AI · Accepted Answer

We start by restating the given data and what is being asked: a drug extends life by 4.1 years with a quality of life of 58.7%, the average life span is 74.2 years, and the Value of a Statistical Life (VSL) is $8,000,000. We need to calculate the QALY value in dollars.

Step 1: Convert the quality of life percentage to a decimal. 58.7% becomes 0.587.
Step 2: Compute the QALYs gained from the life extension. Multiply the extra years by the quality factor: 4.1 years * 0.587 = 2.4067 QALYs.
Step 3: Derive the value per life year using VSL and the average life span. If VSL = $8,000,000 and the life expectancy is 74.2 years, then the value per life year is 8,000,000 / 74.2 = 107,752.96 dollars per year.
Step 4: Multiply the QALYs by the annual value to get the QALY value in dollars. 2.4067 QALYs * 107,752.96 dollars/year ≈ 259,482.48 dollars.

Optional check: The calculation aligns with the interpretation that the QALY value is the product of the discounted or undiscounted life-year value per year (derived from VSL divided by life expectancy) and the QoL-adjusted life-years gained, yielding a result in the vicinity of $259,482.48.

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A new drug will extend life by 4.1 years at a quality of life of 58.7% and average life span is 74.2 and the Value of a Statistical Life is $8mn. Calculate the QALYS value (answer in dollars, 225.251)

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