Innovative Metrics for Quality-Adjusted Life Years: A New Standard for Healthcare Cost-Benefit Analysis

To address the recent rise in healthcare expenditure due to an aging population, the rational allocation and efficient use of resources, based on scientific evidence, has become indispensable. This study presents a more valid quality-adjusted life years (QALY) estimation based on the value of statistical life, which can be used for cost-benefit analysis (CBA) of policy interventions and the efficient allocation of healthcare resources. We assess the accuracy of conventional QALY estimates while proposing a new, more rational, and flexible QALY estimation that combines age and scenario factors, demonstrating their validity. Our numerical analysis suggests that updating QALY by considering regional characteristics such as population, age distribution, and changes in quality of life (QoL) can lead to a more accurate CBA. Using this metric enables more rational policy budgeting based on scientific evidence and indicates the potential for achieving greater efficiency in the allocation of healthcare resources. Furthermore, increasing the proportion of healthy individuals with a gradual decline in QoL can help reduce healthcare expenditure.