In clinical studies, we often consider not only patients' survival time, bu
t also their quality of life. Quality adjusted life years (QALY) is an inte
grated measure of medical outcome that combines a patient's quantity and qu
ality of life. Estimation of mean QALY for a group of patients is complicat
ed by the fact that some patients are censored. The conventional approach i
s to obtain the Kaplan-Meier estimate of the survival function associated w
ith individual QALYs and then use the area under the Kaplan-Meier curve as
an estimate of mean QALY. Glasziou, Simes and Gelber showed that this metho
d is biased because censoring at the nominal time scale is informative for
predicting unobserved QALYs. In this paper, we propose a methodology for co
nsistent estimation of mean QALY. Simulation studies are conducted to inves
tigate the relative performance of the new method and the conventional meth
od. Copyright (C) 1999 John Wiley & Sons, Ltd.