Quality Adjusted Life Year (QALY)

A Quality Adjusted Life Year (QALY) is a measure used to evaluate the value of healthcare interventions by combining length of life with quality of life. One QALY is equivalent to one year of life in perfect health. If a person lives for one year in a state of less than perfect health, that time is adjusted down to reflect its diminished quality. For instance, living two years with a chronic illness might equal 1.5 QALYs. QALYs help policymakers and healthcare providers determine which treatments provide the best health benefits relative to their costs.