ECONOMICS AND THE TREATMENT OF AIDS - A PRELIMINARY ASSESSMENT

This paper applied cost-effectiveness analysis to the use of drug ther apy in the treatment of AIDS. The empirical approach adopted overcame the facts that the samples of patients had varying clinical prognoses, had variable entry dates into the samples and, because AIDS is a term inal disease, had variable exit dates. Holding these variables constan t, administration of the drug AZT proved to be a less costly alternati ve than other existing palliatives for AIDS. The sub-sample of patient s treated with AZT had lower hospitalization costs, lower caring costs and sufferers had an increased ability to continue to participate for longer as economically active members of society.