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Keywords:

  • regression;
  • censored data;
  • cost-effectiveness;
  • incremental net benefit;
  • inverse probability weighting

Abstract

A system of seemingly unrelated regression equations is proposed for prognostic factor adjustment and subgroup analysis when comparing two groups in a cost-effectiveness analysis with censored data. Because of the induced dependent censoring on costs and quality-adjusted survival, inverse probability weighting is employed for parameter estimation. The method is illustrated with data from two recent examples using both survival time and quality-adjusted survival time as the measures of effectiveness. Copyright © 2004 John Wiley & Sons, Ltd.