||To estimate the value of lives by virtue of medical spending, the liver cancer patients in Taiwan were taken as subjects on this study. The data used in this paper were taken from the National Health Insurance Bureau claims data during 1996 till 2007. The analyses were performed both in hospital’s approach and the patients’ approach. First, an analysis between hospital expenses and hospital mortality was held, from which the value of life was estimated. Then, the value of a life-year was derived from another analysis between patients’ spending and patients’ survival time. |
In the hospital’s approach , cross section data and panel data were taken , and underwent 2SLS, random effect and fixed effect respectively for regression. In the patients’ approach, the survival analysis with Cox proportional hazard model was held, as well as 3 parametric models including log-logistic, log-normal, and Gamma distributions. From which, the marginal effect was derived and the value of a life-year estimated.
As the results shown, the hospital expenses and hospital mortality are negatively related. And the value of life for the liver cancer patients ranges from 25 millions to 390 millions NTD. In the patients’ approach, patient’s spending and patient’s survival time are positively related, and the survival time decreases with age. In this study, annual value of survival gains in 1997-2006 is 2.8-3.6 millions NTD, lifetime value of survival gains is 8.2-11 millions NTD, that implied value of a life year is 2.8-3.5 millions NTD.
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