THIS CHAPTER demonstrates various approaches to calculating QALYs. Each approach provides a unique perspective on what QALYs are, how they are used, and how they are calculated. We call these methods (1) the life table method, (2) the Markov method, and (3) the summation method.

In the life table method, a spreadsheet is used to calculate the number of deaths and person-years remaining in a hypothetical cohort, as we did in Chapter Six. These person-years are then adjusted for HRQL to obtain the total QALYs lived (Erickson, Wilson, and Shannon, 1995; Muennig and Gold, 2002). In the Markov method, subjects in a hypothetical cohort gain 1 QALY for each year they remain alive. We also saw how this worked in ...

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