You recently received word that Sunnydale’s neighboring town, Shadyville, reported an incidence rate of 10 new cases per 100,000 residents annually for cryptosporidiosis. Residents have two contingency plans to possibly lower the Cryptosporidium rate. You have once again been hired to help a community analyze its options for health outcomes.
Contingency Plan 1 is a new process introduced by an international health team that guarantees the removal of pathogenic microorganisms in the town’s water system. Evidence has revealed that Contingency Plan 1 will lower the influenza rate to four new cases annually.
Contingency Plan 2 is a mandated, innovative antidote that completely protects the population against influenza; however, Contingency Plan 2 has one adverse side effect. Participants receiving the antidote become extremely lethargic and cannot function for 7 days.
1. What types of economic evaluations should Shadyville use to rationalize the decision between the implementation of Contingency Plan 1 and Contingency Plan 2? Why?
2. Thinking outside of the box, quantify all of the costs for Contingency Plan 1 and Contingency Plan 2.
Include both direct and indirect costs.
3. Discuss how outcomes are measured for a cost-effectiveness analysis, a cost-utility analysis, and a cost-benefit analysis.
4. Conduct at least 1 type of economic evaluation, and make several assumptions regarding why the economic evaluation is appropriate for Shadyville.
5. Make your recommendation on whether to use Contingency Plan 1 or Contingency Plan 2.
Include ethical justification.
6. Describe how your findings may be helpful for Sunnydale to decide among its alternatives.