Module 1 2021

Opportunity cost

 The NICE threshold represents the opportunity cost of forgone medicines  If we (randomly) take £20,000 out of the NHS ‘pot’, we expect to lose (on average) 1 QALY  So, for every £20,000 that we spend, we hope to gain more than 1 QALY  This is specific to NICE but the concept of scarcity and opportunity cost is consistent to all of Europe

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Cost effectiveness threshold

£30,000 per QALY

Price 3

£60,000

£50,000

£20,000 per QALY

Price 2

£40,000

£30,000

£10,000 per QALY

Cost (£)

Price 1

£20,000

£10,000

QALYs gained Net health benefit 1 QALY

£0

0

1

2

3

Effectiveness of intervention

44

22