Using inverse-weighting in cost-effectiveness analysis with censored data

Due to induced dependent censoring, estimating mean costs and quality-adjusted survival in a cost-effectiveness analysis using standard life-table methods leads to biased results. In this paper we propose methods for estimating the difference in mean costs and the difference in effectiveness, together with their respective variances and covariance in the presence of dependent censoring. We consider the situation in which the measure of effectiveness is either the probability of patients surviving a duration of interest, mean survival time over a duration of interest or mean quality-adjusted survival time over a duration of interest. The method of inverse-weighting is used for censored cost and quality of life data. The methods are illustrated in an example using an incremental net benefit analysis.