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Health economic evaluation of internet-based cognitive behavioral therapy versus traditional CBT for generalized anxiety disorder in India using Markov modeling, QALYs, ICER, and sensitivity analysis.

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💰 Cost-Effectiveness Analysis Using Markov Modeling

Health economic evaluation of internet-based cognitive behavioral therapy (ICBT) versus traditional CBT for generalized anxiety disorder (GAD) in India using Markov modeling, QALYs, ICER, and sensitivity analysis.

📌 Overview

This project evaluates the cost-effectiveness of internet-delivered guided self-help cognitive behavioral therapy (ICBT) compared with traditional CBT for adults with generalized anxiety disorder (GAD) in India.

A health-state transition Markov model was developed to estimate costs and health outcomes over a 10-year time horizon from a societal perspective.

The analysis focuses on:

  • 💻 Internet-based Cognitive Behavioral Therapy (ICBT)
  • 🧠 Traditional Cognitive Behavioral Therapy (CBT)
  • 📊 Markov health-state modeling
  • 💵 Societal cost estimation
  • ❤️ Quality-adjusted life years (QALYs)
  • 📈 Incremental cost-effectiveness ratio (ICER)
  • 🔍 Deterministic sensitivity analysis

🎯 Research Question

Is ICBT cost-effective in comparison to traditional CBT in India?


🎯 Objectives

  • Evaluate the cost-effectiveness of ICBT compared with traditional CBT.
  • Estimate total costs associated with each intervention.
  • Estimate QALYs generated by each treatment strategy.
  • Calculate the incremental cost-effectiveness ratio (ICER).
  • Assess the robustness of the findings through sensitivity analysis.

🧮 Methodology

🔄 Markov Model

A health-state transition Markov model was used to simulate the progression of GAD over time.

Model Component Description
⏳ Time horizon 10 years
🔁 Cycle length 3 months
👥 Cohort 1,000 adults aged 30–59
🌍 Setting India
💼 Perspective Societal
❤️ Outcome QALYs
💰 Economic evaluation Cost-effectiveness analysis
📉 Discount rate 5%

The model was adapted from a previously published Markov modeling approach.

💻 Treatment Strategies

Two treatment strategies were compared:

  1. ICBT — Internet-delivered guided self-help CBT
  2. Traditional CBT

💵 Cost Analysis

The analysis incorporated relevant societal costs, including:

  • 🏥 GAD-related healthcare utilization
  • 💼 Societal/productivity costs
  • 💻 Intervention costs
  • 📚 Costs informed by published literature
  • 👩‍⚕️ Expert-informed cost inputs where required

❤️ Health Outcomes

Treatment outcomes were measured using Quality-Adjusted Life Years (QALYs).

Both costs and benefits were discounted at 5% in the base-case analysis.


📈 Cost-Effectiveness Analysis

The incremental analysis compared ICBT with traditional CBT using:

Incremental Cost = Cost(ICBT) − Cost(Traditional CBT)

Incremental QALYs = QALYs(ICBT) − QALYs(Traditional CBT)

ICER = Incremental Cost / Incremental QALYs


🔍 Sensitivity Analysis

Deterministic sensitivity analyses were conducted to examine how changes in key assumptions affected the results.

Scenarios included:

  • 💰 Intervention cost ±20%
  • 💼 Inclusion/exclusion of productivity costs
  • 📉 Discount rates of 3%, 5%, and 7%

The sensitivity analyses showed that the overall conclusion remained robust.


📊 Key Results

Outcome Traditional CBT ICBT
💵 Total cost $2,334,438.76 $1,707,604.82
❤️ Total QALYs 21,053.20 21,479.23
💰 Incremental cost — −$626,833.93
❤️ Incremental QALYs — +426.03
📈 ICER — −$1,471.33/QALY

🏆 Base-Case Conclusion

ICBT was less costly and more effective than traditional CBT in the base-case analysis and was therefore considered dominant.


🔬 Analytical Workflow

Population & Treatment Strategies
              ↓
       Markov Model
              ↓
     Health-State Transitions
              ↓
       Cost Estimation
              ↓
          QALYs
              ↓
   Incremental Analysis
              ↓
            ICER
              ↓
    Sensitivity Analysis
              ↓
    Cost-Effectiveness Result

🛠️ Skills Demonstrated

  • 📊 Health economic modeling
  • 🔄 Markov modeling
  • 📈 Cost-effectiveness analysis
  • 🧮 Incremental analysis
  • ❤️ QALY estimation
  • 💰 Cost analysis
  • 🔍 Sensitivity analysis
  • 📚 Evidence synthesis from published literature
  • 🧠 Mental health / health economics research
  • 🇮🇳 India-focused health economic evaluation

📁 Project Structure

├── README.md
├── data/
├── model/
├── analysis/
├── results/
└── references/

The exact folder structure can be adapted to match the files used in the analysis.


⚠️ Limitations

The analysis relies partly on available published evidence and India-specific data limitations. Some model inputs were informed by expert opinion.

Further research could improve the analysis through:

  • More robust India-specific efficacy estimates
  • More detailed intervention cost estimates
  • Improved estimates of societal/productivity costs
  • Probabilistic sensitivity analysis

💡 Why This Project Matters

GAD creates a substantial burden for individuals and healthcare systems. Internet-based psychological interventions may provide a more accessible treatment option than conventional face-to-face therapy.

This project demonstrates how economic modeling and quantitative analysis can be used to evaluate whether alternative mental health interventions provide better value for money in a specific healthcare setting.


📚 Research Focus

Health Economics • Mental Health • Cost-Effectiveness • Markov Models • Economic Evaluation • QALYs • ICER • Sensitivity Analysis • India


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Health economic evaluation of internet-based cognitive behavioral therapy versus traditional CBT for generalized anxiety disorder in India using Markov modeling, QALYs, ICER, and sensitivity analysis.

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