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      • INSTRUCTIONS
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  • Health Economics Analysis of for the Legit.Health Medical Device
  • INSTRUCTIONS

INSTRUCTIONS

I am the manufacturer of a medical device used in public hospitals, called Legit.Health. This device receives images taken with a smartphone, and outputs

  • the condition present in the image
  • the likelihood of a lesion being malignant
  • the severity (degree of involvement) of the condition.

I want you to write a pricing justification for the Legit.Health device and write it into apps/qms/docs/pricing/tertiary-analysis/index.mdx. For each attribute of the value proposition (reduce referrals, reduce waiting time, reduce diagnostic errors...) do a small essay, showing the formulas in KaTeX to arrive to the euro value provided, and thus justifying the price of the device.

Some of the value components to consider (take them with a grain of salt, since I want you to create your own analysis), are explained on apps/qms/docs/pricing/secondary-analysis/output.mdx. Here they are:

### Value Components

Total quantifiable value per patient: **€47.28**

#### Direct Economic Value: €31.12

**1. Efficiency Gains (€15.47)**

- Reduced consultation time: €7.82 (5 min @ €93.84/hour specialist rate)
- Improved triage accuracy: €4.31 (avoiding inappropriate referrals)
- Documentation automation: €3.34 (standardized reporting)

**2. Quality Improvement Value (€15.65)**

- Reduced diagnostic errors: €8.90 (1.2% error reduction × liability costs)
- Earlier intervention benefits: €4.25 (improved treatment outcomes)
- Patient satisfaction improvements: €2.50 (retention and compliance)

#### Indirect Economic Value: €16.16

##### Melanoma Early Detection Contribution

- Spanish melanoma incidence: 0.3% of dermatology patients
- Stage migration benefit (Stage II→I): €1,800 cost differential
- Device attribution factor: 30% (assists clinical decision)
- Per-patient value: $\frac{0.003 \times 1,800 \times 0.30}{1} = 1.62$ €

#### System-Wide Benefits

- Reduced wait times: €8.74 (opportunity cost recovery)
- Capacity optimization: €5.80 (better resource allocation)

That is simply an attempt to derive some value components. You should ultrathink each of them, and create your own version. Also, further value components can be derived from the clinical evidence we have created for the device, which is summarized on apps/qms/src/components/PerformanceClaimsAndClinicalBenefits. Therein you can find the clinical benefits and performance claims that Legit.Health has demonstrated in various studies. Use this evidence to support your pricing justification. So you can include additional value components.

You can also look at the analysis conducted by Gemini: apps/qms/docs/pricing/initial-analysis/value-based-pricing/resources/geminis-investigation.mdx, which includes cites to external sources that can help justify the value provided by the device. It's also good that this analysis includes KaTeX formulas, since I also want to see those in the pricing justification - not necessarily those.

FYI, to derive the costs of various procedures, you can look at apps/qms/docs/pricing/initial-analysis/value-based-pricing/resources/healthcare-cost-in-valencia.mdx, which is a benchmark of costs specific to the Valencia region, but keep in mind that other regions such as the Basque Country or Madrid may have different prices.

With this in mind, write a comprehensive pricing justification for the Legit.Health device, using KaTeX formulas to illustrate how you arrive at the euro values for each attribute of the value proposition. This justification should simply focus on the value provided, not on objections or any other meta aspects.

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All the information contained in this QMS is confidential. The recipient agrees not to transmit or reproduce the information, neither by himself nor by third parties, through whichever means, without obtaining the prior written permission of Legit.Health (AI LABS GROUP S.L.)