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HealthEconomics.wiki · Interactive demonstrator

Competing Risks Explorer

A patient who dies of another cause can no longer have the stroke, relapse or fracture a treatment is meant to prevent. Change the hazards below and see how ignoring that fact inflates risk, overstates the benefit of prevention and breaks transition probabilities.

Competing events end time at risk

Competing risks are events that each end a patient's time at risk, such as cardiovascular and other-cause death, so the first to occur rules out the rest. The explorer follows the chain a model builder works through.

1 · RatesEach event has a cause-specific hazard: its rate among people still free of every event.
2 · RisksThe cumulative incidence of an event depends on all the hazards, because competing events shrink the group at risk.
3 · Model inputsEach exit from a model state needs a transition probability that respects the other exits.

Start with a scenario

All numbers are illustrative. The first scenario is the worked example on the concept page; the others vary one feature so you can see what drives the error.

Set the hazardsScenario: Stroke prevention in older adults

Name the two eventsUsed in labels throughout. Plain text only.
Constant cause-specific hazard, per person-year, without treatment.
Constant cause-specific hazard, per person-year. Unchanged by treatment.
Multiplies the cause-specific hazard. Below 1 means fewer events.
Only first events are counted.
A one-off cost per first event, used for the cost offset.

From rates to risk

The shaded areas show where the cohort has gone by each year. The dashed line is one minus Kaplan-Meier with the competing event treated as censoring: the risk in a hypothetical population where the competing event cannot happen.

Show the cohort

Show the curves as a table
Year-by-year risks for the selected cohort
Year1 − KM, StrokeCIF, StrokeCIF, Other-cause deathEvent freeSum of three

100 people at the horizon

Selected cohort, rounded to whole people.

    What the treatment really prevents

    The same hazard ratio, the same cost per event. Only the way risk is calculated differs.

    Treatment effect by method
    Quantity at the horizon1 − Kaplan-Meier (naive)Cumulative incidence

    Why the numbers differ
      Test the boundary

      From rates to transition probabilities

      A cohort state-transition model needs one probability per exit per cycle. This uses the hazards without treatment and the time horizon above.

      Shorter cycles shrink, but do not remove, the error from separate conversion.

      Correct for competing exits

      pk = (qk / Σqj) · [1 − e−t·Σqj]

      Separate conversion, one exit at a time

      pk = 1 − e−qkt

      The first formula applies to a state whose exits lead to states not left again within the cycle (Jones, Epstein and García-Mochón).

      Per-cycle transition probabilities
      Per cycleCorrectSeparate

      Spot the misreading

      Each statement describes a choice an analyst might make. Decide whether it is sound. Most errors with competing risks overstate the risk of the event of interest, and so overstate the benefit of preventing it.

      The ideas behind the explorer

      Summarised from the published concept page. Formulas assume constant hazards unless stated.

      Cause-specific hazard and cumulative incidence

      The cause-specific hazard is the instantaneous rate of an event among people who have not yet had any of the events. The cumulative incidence is the probability of having had that event by time t, and depends on every hazard.

      F1(t) = ∫0t S(u) h1(u) du, S(t) = e−H1(t) − H2(t)
      F1(t) = h1/(h1+h2) · [1 − e−(h1+h2)t]

      Look for: a curve that levels off at h₁/(h₁+h₂) rather than approaching 1.

      Why one minus Kaplan-Meier overstates risk

      Censoring the competing event estimates risk in a population where it cannot happen. This biases incidence upward whether or not the events are independent. In a heart failure case study, five-year cardiovascular death was 43.0% by one minus Kaplan-Meier and 36.8% by cumulative incidence.

      Look for: event-specific risks that add up to more than the all-event risk, or even more than 1.

      Censoring is not a competing event

      A censored patient could still have the event later, which is why independent censoring can be assumed. A patient who has had a competing event cannot.

      Look for: whether the person can still have the event after leaving observation.

      Two regression models, two questions

      A cause-specific hazard model (Cox, competing events censored) describes the rate among people still free of all events. The Fine and Gray subdistribution model keeps people with a competing event in the risk set and describes the effect on cumulative incidence. In heart failure data, cancer had a cause-specific hazard ratio of 0.96 for cardiac death but a subdistribution hazard ratio of 0.82.

      Look for: a decision model that tracks people through states needs cause-specific hazards.

      Probabilities over a period

      Evidence often arrives as probabilities rather than rates. Converting them one exit at a time fails with three transitions: in a heart transplant example it projected 23 people still waiting at three years against an observed 9. The ISPOR-SMDM report suggests estimating the probability of death first and then a conditional distribution of causes, when cause of death matters.

      Look for: exit probabilities derived jointly, not one at a time.

      Competing risks in discrete event simulation

      Either sample a time for each possible event and take the earliest, or sample one time to the next event and then its type. The first is easier to fit to data; the second estimates timing jointly and is preferred by the ISPOR-SMDM report where feasible. Degeling and colleagues recommend time first, type second, though in their case study the choice did not change outcomes substantially.

      Look for: how the next event, and its type, are chosen.

      The core rule

      A hazard rate no longer fixes risk on its own. The probability of each event depends on every competing hazard, and the probabilities of all mutually exclusive events must add up to the probability of having had any event.

      Method, assumptions and limitations
      • All scenarios are illustrative and are not clinical estimates. The tool gives no clinical or prescribing advice.
      • Hazards are constant over time and the treatment acts only on the event of interest; real hazards usually vary with age and time, and the general integral form then applies.
      • Only first events are counted, as in the concept page's worked example. Recurrent events, onward transitions within a cycle and states left again within a cycle are not modelled; for those, probabilities come from the full rate matrix.
      • The "1 − Kaplan-Meier" values are the large-sample values it would estimate under constant hazards, not estimates from sampled data. No sampling uncertainty is shown.
      • The 100-person picture marks, among those who had the competing event, the extra people one minus Kaplan-Meier would count as having the event of interest. That reading uses latent event times, which the observed data cannot identify without an untestable independence assumption (Tsiatis). Treat it as a teaching device, not an estimate of what would have happened to real patients.
      • Costs are undiscounted one-off costs per first event. Life years and QALYs are not calculated; the concept page notes that people spared the event remain at risk of the competing event, so these gains are smaller than a single-risk analysis suggests.
      • Always confirm modelling choices against the full evidence, the analysis plan and applicable methodological guidance.
      Source and references

      Content source: Baines, D. (2026). "Competing Risks." Health Economics Concepts. London: Intelligent Parameters Ltd. Version 1.0.2. https://healtheconomics.wiki/concept/competing-risks (read 12 October 2026). The concept page is published under CC BY 4.0. The page's trust record stated that this version had not yet been verified.

      References cited on the concept page and used in this demonstrator:

      • Andersen PK, Geskus RB, de Witte T, Putter H. Competing risks in epidemiology: possibilities and pitfalls. Int J Epidemiol. 2012;41(3):861-870. doi:10.1093/ije/dyr213
      • Austin PC, Lee DS, Fine JP. Introduction to the analysis of survival data in the presence of competing risks. Circulation. 2016;133(6):601-609. doi:10.1161/CIRCULATIONAHA.115.017719
      • Degeling K, Koffijberg H, Franken MD, Koopman M, IJzerman MJ. Comparing strategies for modeling competing risks in discrete-event simulations. Med Decis Making. 2019;39(1):57-73. doi:10.1177/0272989X18814770
      • Gidwani R, Russell LB. Estimating transition probabilities from published evidence: a tutorial for decision modelers. PharmacoEconomics. 2020;38(11):1153-1164. doi:10.1007/s40273-020-00937-z
      • Jones E, Epstein D, García-Mochón L. A procedure for deriving formulas to convert transition rates to probabilities for multistate Markov models. Med Decis Making. 2017;37(7):779-789. doi:10.1177/0272989X17696997
      • Karnon J, et al. Modeling using discrete event simulation: ISPOR-SMDM Task Force-4. Value Health. 2012;15(6):821-827. doi:10.1016/j.jval.2012.04.013
      • Siebert U, et al. State-transition modeling: ISPOR-SMDM Task Force-3. Value Health. 2012;15(6):812-820. doi:10.1016/j.jval.2012.06.014
      • Tsiatis A. A nonidentifiability aspect of the problem of competing risks. PNAS. 1975;72(1):20-22. doi:10.1073/pnas.72.1.20