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. Author manuscript; available in PMC: 2016 Jan 31.
Published in final edited form as: Med Decis Making. 2014 May 5;35(2):170–182. doi: 10.1177/0272989X14528382

Table 2.

Input values, plausible ranges for unknown parameters, and calibration targets for the simple Markov model.

Parameter Value or Range

Time Horizon 30 years
Annual discount rate 3%
Annual transition probabilities
 Disease onset (healthy to S1) 0.15
 Recovery (S1 to healthy) 0.5
 Disease progression (S1 to S2) (0.01 – 0.48)
Annual probability of death
 Healthy individuals 0.005
 Relative risk in S1, relative to healthy (1.0 – 4.5)
 Relative risk in S2, relative to healthy (1.0 – 20)
Annual costs
 Healthy individuals $2,000
 Sick individuals in S1 $4,000
 Sick individuals in S2 $15,000
Quality-of-life
 Healthy individuals 1.00
 Sick individuals in S1 0.75
 Sick individuals in S2 0.50
Intervention effects
 Annual treatment cost per sick individual $12,000
 Quality-of-life of treated individuals in S1 0.95

Calibration Target Target Value

Overall 5-year survival 98%
Overall 10-year survival 84%
Prevalence of disease in year 5 15%
Ratio of S1:S2 8:1