Volume 51 | Number 2 | April 2016

Abstract List

Ya‐Chen Tina Shih Ph.D., Chun‐Ru Chien M.D., Ph.D., Rocio Moguel B.S., Mike Hernandez M.S., Richard A. Hajek Ph.D., Lovell A. Jones Ph.D.


To assess the cost‐effectiveness of implementing a patient navigation () program with capitated payment for Medicare beneficiaries diagnosed with lung cancer.

Data Sources/Study Setting

Cost‐effectiveness analysis.

Study Design

A Markov model to capture the disease progression of lung cancer and characterize clinical benefits of services as timeliness of treatment and care coordination. Taking a payer's perspective, we estimated the lifetime costs, life years (s), and quality‐adjusted life years (s) and addressed uncertainties in one‐way and probabilistic sensitivity analyses.

Data Collection/Extraction Methods

Model inputs were extracted from the literature, supplemented with data from a Centers for Medicare and Medicaid Services demonstration project.

Principal Findings

Compared to usual care, services incurred higher costs but also yielded better outcomes. The incremental cost and effectiveness was $9,145 and 0.47 s, respectively, resulting in an incremental cost‐effectiveness ratio of $19,312/. One‐way sensitivity analysis indicated that findings were most sensitive to a parameter capturing survival benefit for local‐stage patients. ‐acceptability curve showed the probability that the program was cost‐effective was 0.80 and 0.91 at a societal willingness‐to‐pay of $50,000 and $100,000/, respectively.


Instituting a capitated program is cost‐effective for lung cancer patients in Medicare. Future research should evaluate whether the same conclusion holds in other cancers.