13 Research methods, statistics, critical review and evidence-based practice13.6 Economic analysis
13.6.4 QALYs and DALYs
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Written by Resident Doctor Committee · Published
The quality-adjusted life year
A quality-adjusted life year (QALY) is time lived weighted by the utility of the health state it is lived in, combining length and quality of life in one figure.
The QALY is the outcome unit of cost-utility analysis.
Utility is anchored at 1 for full health and 0 for death with no floor, so states judged worse than death take negative values and subtract QALYs.
Calculating QALYs
Total QALYs equal years lived multiplied by the utility for those years: one year at 0.6 gives 0.6 QALYs.
Incremental QALYs are the difference between the two options' lifetime QALY totals.
With survival unchanged and no discounting, this equals the utility difference multiplied by how long it lasts.
Raising utility from 0.6 to 0.8 for five years gives (0.8 - 0.6) x 5 = 1 additional QALY.
Where utilities come from
The National Institute for Health and Care Excellence (NICE) prefers the EQ-5D, which rates mobility, self-care, usual activities, pain or discomfort, and anxiety or depression.
Method | What is offered | Utility |
|---|---|---|
Time trade-off | Fewer years in full health instead of a longer period in the state | Indifference between ten years in the state and seven in full health gives 0.7 |
Standard gamble | The state for certain against a gamble between full health and immediate death | Probability of full health at indifference, so it includes attitude to risk |
The disability-adjusted life year
The disability-adjusted life year (DALY) measures healthy life lost: DALYs = years of life lost (YLL) + years lived with disability (YLD).
Feature | QALY | DALY |
|---|---|---|
Counts | Quality-adjusted life lived | Healthy life lost |
Weight anchors | 1 full health, 0 death | 0 no loss, 1 loss equal to death |
Direction | More is better | Fewer is better |
Limitations in psychiatry
EQ-5D does not directly assess hallucinations, cognition or recovery, so it may miss meaningful change.
Extending life counts for less in someone with permanent impairment: five extra years at utility 0.5 give 2.5 QALYs, against 4.5 at 0.9.