By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    bowl of vegetable salad
    Raw Foods: benefits and harms
    November 9, 2021
    pros and cons of the keto diet
    Read This Before You Follow the Keto Diet
    May 18, 2022
    spinal cord injuries
    4 Potential Causes of Spinal Cord Injuries (and How to Seek Compensation)
    May 25, 2022
    Latest News
    Beyond Nutrition: Everyday Foods That Support Whole-Body Health
    June 15, 2025
    The Wide-Ranging Benefits of Magnesium Supplements
    June 11, 2025
    The Best Home Remedies for Migraines
    June 5, 2025
    The Hidden Impact Of Stress On Your Body’s Alignment And Balance
    May 22, 2025
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    The key stakeholders involved in improving healthcare policy
    The Key Stakeholders involved in Improving Healthcare Policy
    October 26, 2023
    medical erros avoid
    How to Report Medication Errors and Why It’s Important
    November 17, 2024
    Essential Steps for Developing a Life Care Plan
    Essential Steps for Developing a Life Care Plan
    December 26, 2024
    Latest News
    Top HIPAA-Compliant Messaging Apps for Healthcare Teams
    June 25, 2025
    When Healthcare Ends, the Legal Process Begins: What Families Should Know About Probate and Medical Estates
    June 20, 2025
    Preventing Contamination In Healthcare Facilities Starts With Hygiene
    June 15, 2025
    Strengthening Healthcare Systems Through Clinical and Administrative Career Development
    June 13, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Defending the Quality Adjusted Life Year (QALY)
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Business > Defending the Quality Adjusted Life Year (QALY)
BusinessPolicy & Law

Defending the Quality Adjusted Life Year (QALY)

DavidEWilliams
Last updated: May 6, 2011 5:51 pm
DavidEWilliams
Share
4 Min Read
SHARE

Pity the QALY. The health economist’s admittedly imperfect measure has become a whipping boy of those who pretend the US can sustain policies that ignore aggregate spending levels in health care. Peter J. Neumann, ScD defends the QALY in the latest issue of JAMA. (Note: I serve on the Executive Advisory Board of Neumann’s Center for the Evaluation of Value & Risk in Health.)

Pity the QALY. The health economist’s admittedly imperfect measure has become a whipping boy of those who pretend the US can sustain policies that ignore aggregate spending levels in health care. Peter J. Neumann, ScD defends the QALY in the latest issue of JAMA. (Note: I serve on the Executive Advisory Board of Neumann’s Center for the Evaluation of Value & Risk in Health.)

The Quality Adjusted Life Year (QALY) is a way to measure health status over time, where perfect health (as measured by patient preferences) is defined as 1.0 and death 0.0. All else being equal a higher QALY is better than a lower one. The QALY is an improvement over simply measuring life expectancy. For example, it seems obvious that a person would prefer to live 5 years in perfect health than 5 years in a coma. QALYs reflect that preference. A nice feature of QALYs is they can be used across disease areas and types of treatment.

QALYs are imperfect methodologically. But the limitations are fairly modest (e.g., preference ratings are difficult to ascertain, the order in which health states are experienced is not reflected) and don’t explain the antipathy toward the very notion of measuring and publishing QALYs. There are many other kinds of imperfect measurements we rely on routinely, such as the consumer price index or even blood pressure, however you don’t hear a lot of attacks on those tools because few oppose measuring inflation or hypertension.

More Read

Personalized Medicine and a Cure for Cancer
Think Patients Are Bad At Communicating? Rethink Your Systems
Are MD/MBAs Real Doctors?
Rejoinder to yesterday’s Medicare post
How To Become An Emergency Preparedness Administrator

But the long knives are out for the QALY because of the widespread aversion to considering value and resource allocation in health care financing. QALYs themselves don’t incorporate any cost information. However cost per QALY calculations are used to influence coverage decisions, especially in other countries such as the UK. Sometimes a specific cost per QALY threshold is set for whether a treatment will be covered at all, and this is an understandable source of controversy.

The QALY is under attack due to its association with resource allocation decisions and rationing, but is likely to survive, even if explicit cost per QALY coverage decisions go by the wayside. As Neumman writes:

Shunning the QALY would not alter the unsustainability of the health spending trajectory or the need to confront the cross-disease and cross-sector tradeoffs inherent in health choices, but would merely mask them… Unavoidably, ways are needed to measure the value of health care delivered, especially to inform market-based approaches. And the QALY, perhaps a bit bruised by recent events, will be waiting in the wings.

 


TAGGED:health care business. health care policy
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

women dental care
What Is a Smile Makeover and How Much Does It Cost?
Dental health
June 30, 2025
HIPAA-Compliant Messaging Apps
Top HIPAA-Compliant Messaging Apps for Healthcare Teams
Global Healthcare Policy & Law Technology
June 25, 2025
recovering from injury
Rebuilding After Injury: Path to Physical and Emotional Recovery
News
June 22, 2025
scientist using microscope
When Healthcare Ends, the Legal Process Begins: What Families Should Know About Probate and Medical Estates
Global Healthcare
June 18, 2025

You Might also Like

legacy healthcare systems
Global HealthcareHealth care

Five Reasons to Replace Legacy Healthcare Systems

October 25, 2021

TruTouch Technologies Receives US Patent For Non-Invasive Alcohol Detection Device

January 4, 2012
The Walking Gallery
Health ReformSocial Media

The Walking Gallery: Personalizing Patient Stories [Podcast]

February 9, 2015
Image
Global HealthcareMobile Health

Mobile Health Around the Globe: Magpi Data Collection System Helps Thousands Worldwide

June 10, 2013
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?