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DEALE-ing and Discounting

Author

Listed:
  • Isabelle Durand-Zaleski
  • Stéphane Zaleski

Abstract

Researchers agree on the importance of discounting costs and of including mortality rates in the cost computations. The authors present a simplified mathematical model that allows both DEALE-ing and discounting and permits easy computations of accrued and incremental costs. The general formula of the accrued discounted cost of treating over time of life expectancy is: A systematic discussion of the errors involved in the DEALE approximation shows that it will in most cases truly describe the ordering of the costs of various treatments. The DEALE are compared with the costs obtained by using actual mortality statistics. It was found that when two strategies have actual costs C A and C B such as C A greater than C B and C A /C B superior to 1.25, the ordering of C A and C B will always be kept in this simplified model. Key words: DEALE; costs; economics; discounting. (Med Decis Making 1994;14:98-103)

Suggested Citation

  • Isabelle Durand-Zaleski & Stéphane Zaleski, 1994. "DEALE-ing and Discounting," Medical Decision Making, , vol. 14(1), pages 98-103, February.
    • Handle: RePEc:sae:medema:v:14:y:1994:i:1:p:98-103
    DOI: 10.1177/0272989X9401400112
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    Cited by:

    1. Elizabeth Arnold & Yong Yuan & Uchenna Iloeje & Greg Cook, 2008. "Cost-effectiveness analysis of entecavir versus lamivudine in the first-line treatment of Australian patients with chronic hepatitis B," Applied Health Economics and Health Policy, Springer, vol. 6(4), pages 231-246, October.

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