Correcting prevalence and cost estimates for misclassification by a measure validated against a criterion
p = (a + Sp - 1) / (Se + Sp - 1); C_flag = PPV * C_1 + (1 - PPV) * C_0
Uses the sensitivity and specificity of a measure, estimated against a criterion such as medical record review, to recover the true prevalence from the share the measure flags and to show how false positives shift the mean cost of a flagged cohort. Sensitivity, specificity and predictive values themselves are HE-FM-DXA-001 (from the two-by-two table) and HE-FM-DXA-003 (at a given prevalence) on the Diagnostic Accuracy page. Notation follows the Criterion Validity article and its heart failure claims algorithm.
Rogan-Gladen corrected prevalence from the share flagged by an imperfect algorithm
p = min(1, max(0, (a + Sp - 1) / (Se + Sp - 1)))
Mean cost of an algorithm-flagged cohort weighted by the positive predictive value
C_flag = PPV * C_1 + (1 - PPV) * C_0; Bias = C_flag - C_1