Deck 14: Cost-Benefit Analysis, Cost-Effectiveness Analysis, and Program Evaluation

Question 1

If n = 10,000, screening costs $7.50 per test, early treatment costs $10,000 per case, and late treatment costs $30,000 per case, Po-o-c must be

A) Greater than 3.75 to make prevention costs less than late treatment costs
B) Equal to 3.75 to make prevention costs equal to late treatment costs
C) Less than 3.75 to make prevention costs greater than late treatment costs
D) All of the above

Answer 1

D

Question 2

If n = 10,000, screening costs $7.50 per test, early treatment costs $10,000 per case, and late treatment costs $30,000 per case, Po-o-c must be

A) Less than 1.00 to make prevention cheaper than late treatment costs
B) Between 1.00 and 3.75 to make prevention cheaper than late treatment costs
C) Greater than 3.75 to make prevention cheaper than late treatment costs
D) None of the above

Answer 2

C

Question 3

If prevention is cheaper than late treatment, which of the following will increase the desirability of screening and prevention?

A) A reduction in screening costs
B) A reduction in early treatment costs
C) An increase in late treatment costs
D) An increase in prevalence
E) All of the above

Answer 3

E

Question 4

If prevention is cheaper than late treatment, which of the following will increase the desirability of screening and prevention?

A) An increase in screening costs
B) A reduction in early treatment costs
C) A reduction in late treatment costs
D) A reduction in prevalence

Question 5

Cost benefit analysis is used to determine

A) If an activity will create greater benefits than its cost
B) The lowest cost approach to achieving a goal
C) Whether an existing activity is running according to plan and/or achieving the desired goals
D) Whether a capital investment will generate more revenue than its cost

Question 6

Which of the following formulas is appropriate for cost benefit analysis?

A) Cost of activity/Change in non-monetary outcome
B) (Cost of activity1 - Cost activity2)/(Outcome1- Outcome2)
C) Total revenue/Total cost
D) Actual cost/Budgeted cost

Question 7

What size facility should be built based on the table below to maximize marginal benefit?

A) 100
B) 200
C) 300
D) 400
E) 500

Question 8

Which of the following techniques is used to determine if the benefits of an activity exceed its costs?

A) Cost benefit analysis
B) Cost effectiveness analysis
C) Program evaluation
D) Capital budgeting

Question 9

Which of the following techniques is used to evaluate the desirability of an activity in which its benefits cannot be measured in dollars?

A) Cost benefit analysis
B) Cost effectiveness analysis
C) Program evaluation
D) Capital budgeting

Question 10

Which of the following situations comes closest to the true meaning of cost effectiveness?

A) An activity that reduces cost or achieves a desired goal
B) An activity that achieves a desired goal or achieves a goal and produces cost savings
C) An activity that achieves a desired goal and produces cost savings or produces a marginal benefit that exceeds its marginal cost
D) An activity that produces a marginal benefit that exceeds its marginal cost or reduces costs

Question 11

Which of the following situations is most desirable?

A) 5 additional years of life in perfect health, QALY = 1.00
B) 6 additional years of life with mild impairment, QALY = 0.90
C) 7 additional years of life with moderate impairment, QALY = 0.80
D) 8 additional years of life with severe impairment, QALY = 0.60
E) 10 additional years of life confined to a hospital, QALY = 0.50

Question 12

The method of determining the quality of life or preferences between health states that asks individuals to determine how many years of perfect health they would accept for a higher number of years in diminished health is

A) The rating scale method
B) The standard gamble method
C) The time trade-off method
D) The cost benefit method

Question 13

Which of the following interventions would be least desirable under cost effectiveness analysis?

A) An intervention that reduces cost and increases QALY by more than one year
B) An intervention that reduces cost and increases QALY by less than one year
C) A low-cost intervention that increases QALY by more than one year
D) A high-cost intervention that increases QALY by more than one year

Question 14

Which of the following formulas should be used to calculate an incremental cost effectiveness ratio?

A) (Cost of intervention - Averted costs)/QALYS gained
B) (Cost of intervention1 - Cost intervention2)/(QALYs1 - QALY2)
C) Total benefit/Total cost
D) Actual cost/Budgeted cost

Question 15

Which of the following techniques is used to determine if an activity is operating according to plan and achieving its objective?

A) Cost benefit analysis
B) Cost effectiveness analysis
C) Program evaluation
D) Capital budgeting

Question 16

The starting point for program evaluation is to

A) Identify the location and size of a problem or opportunity
B) Identify the effectiveness of potential interventions
C) Implement the intervention
D) Assess the impact of the intervention on the desired outcome
E) Assess if the program will or did create value

Question 17

Assessing the evidence between the desired goal of a program and possible interventions occurs in

A) Program need
B) Program design
C) Program implementation and management
D) Program outcome
E) Resource use

Question 18

Which of the following questions is inappropriate when assessing program design?

A) Are objectives well defined and feasible?
B) Can the target population be defined?
C) Are processes capable of achieving the desired goal?
D) Does the program have sufficient resources?
E) Were resources used appropriately?

Question 19

Which of the following questions is inappropriate for assessing program utilization, management, and client satisfaction?

A) Is the good or service volume greater than, equal to, or less than expected?
B) Are the intended targets receiving goods or services?
C) Were the delivered goods or services capable of meeting the desired goal?
D) Did the program comply with governing directives?
E) Was the need or goal worthy?

Question 20

Measuring the outcome of a program is complicated by

A) The variable of interest, i.e., the intended outcome, may have been changing before the program was implemented
B) Other factors may impact the target population during the life of the program
C) Outcomes may be measured months or years after the program had ended
D) All of the above

Question 21

QALYs are the change in life expectancy multiplied by the value of the additional life years.

Question 22

QALYs are used in cost benefit analysis.

Question 23

QALYs produce consistent evaluations of the value of different health states.