Threshold analysis in the presence of both the diagnostic and the therapeutic risk

Stefan Felder () and Thomas Mayrhofer
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Stefan Felder: University of Basel
Thomas Mayrhofer: Stralsund University of Applied Sciences

The European Journal of Health Economics, 2018, vol. 19, issue 7, No 11, 1019-1026

Abstract: Abstract The well-established a priori probability of illness threshold in medical decision making, introduced by Pauker and Kassirer (N Engl J Med 293:229–234, 1975; N Engl J Med 302:1109–1117, 1980), involves the diagnostic risk only. We generalize the threshold analysis by adding the therapeutic risk, i.e., in accounting for the risk that a treatment might sometimes fail. We derive a priori probability of illness threshold as a function of the probability of successful treatment, as well as the inverted function, where the successful treatment probability threshold is a function of the a priori probability of illness. The thresholds in the general model are higher than those in the special cases where one of the two risks is absent. Applications show that the changes in the thresholds can be substantial. Our general model might explain empirical findings of much higher thresholds than the Pauker–Kassirer model suggests.

Keywords: Decision thresholds; Diagnostics; Treatment; Diagnostic risk; Therapeutic risk (search for similar items in EconPapers)
JEL-codes: D81 I19 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (4)

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DOI: 10.1007/s10198-017-0951-1

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