
The Negative Side of Cost-effectiveness Analysis-Reply
Robert L. Obenchain, PhD
Lilly Research Laboratories Indianapolis, Ind
Jose A. Sacristán, MD
Lilly SA Madrid, Spain
JAMA. 1997;277(24):1932-1933.
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In Reply.
—While we sympathize with many of the points raised by Drs Stinnett and Mullahy, we cannot agree that the magnitude of a negative C/E ratio "conveys no useful information." This is an important part of what you "see" when you plot the outcome of a health economics study as a point ( C, E on the cost-effectiveness plane.1
Polar coordinates (radius and angle) are helpful to understand the technical issues here (Figure). Stinnett and Mullahy point out that the C/E ratio is an imperfect measure of angle; any given ratio corresponds to 2 angles that differ by exactly 180°. Outcomes in quadrants II and IV generate negative C/E ratios. An outcome in quadrant IV means that the experimental treatment dominates the standard treatment on long-range average, whereas an outcome in quadrant II indicates the opposite (ie, the standard treatment dominates the experimental treatment).
Quadrant II (0,0) Quadrant III AC Quadrant I
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