Severity QALY weight from the shortfall bands

Returns the NICE severity weight from absolute and proportional shortfall. The weight is 1.7 if absolute shortfall is at least 18 or proportional shortfall at least 0.95, 1.2 if absolute shortfall is at least 12 or proportional shortfall at least 0.85, and 1 otherwise. The measure implying greater severity decides, and a value on a cut-off takes the higher band. Each comparison returns 1 when true and 0 when false.

Signature

w = 1 + 0.2 * ((AS >= 12) or (PS >= 0.85)) + 0.5 * ((AS >= 18) or (PS >= 0.95))
Inputs
InputsDefinitionUnit
ASAbsolute QALY shortfall under current carediscounted QALYs per person
PSProportional QALY shortfall under current careproportion
Output
wWeight applied to the incremental QALYs of the new technologymultiplier, 1, 1.2 or 1.7

Function

Severity shortfall function

Maps the remaining discounted QALYs expected for an age- and sex-matched general population, and for people with the condition under current NHS care, to absolute and proportional QALY shortfall. NICE uses whichever measure implies greater severity to set a weight on the incremental QALYs of a new technology.

Implementations

  • Excel

    Severity weight in one cell

    With absolute and proportional shortfall in AbsShortfall and PropShortfall, Excel returns the weight from table 6.1 of PMG36.

    =IF(OR(AbsShortfall>=18,PropShortfall>=0.95),1.7,IF(OR(AbsShortfall>=12,PropShortfall>=0.85),1.2,1))

Assumptions

  • Scope of the severity weight and judgement near cut-offs

    The weight applies in technology appraisals. PMG36 does not apply it to highly specialised technologies, has not initially applied it to technology appraisals of HealthTech and considers it unlikely to be relevant in diagnostics. Shortfall estimates are uncertain, and the DSU guide notes that judgement is needed when an estimate lies close to a cut-off.

  • Weight on the QALY gain only

    The weight multiplies the incremental QALYs of the technology, not the health forgone elsewhere, so a weight of 1.7 is equivalent to judging the unweighted ICER against £42,500 to £59,500 rather than £25,000 to £35,000. PMG36 asks for net health benefit at £25,000 and £35,000 per QALY both with and without the weight.

Worked examples

  • Weight in the DSU hypothetical case

    Absolute shortfall of 5.93 and proportional shortfall of 0.50 are below both lower cut-offs, so the weight is 1.

    AS = 5.93; PS = 0.50; w = 1
  • Absolute shortfall decides the weight

    Absolute shortfall of 18.5 reaches the top band while proportional shortfall of 0.925 reaches only the middle band. The more severe measure applies, so the weight is 1.7, as in the article.

    AS = 18.5; PS = 0.925; w = 1.7
  • Proportional shortfall on the cut-off

    An older population with absolute shortfall of 9 and proportional shortfall of exactly 0.85 falls on the lower cut-off, and the higher band applies, giving a weight of 1.2. The figures are illustrative.

    AS = 9; PS = 0.85; w = 1.2

Common errors

  • Taking the weight from one measure only

    Checking only proportional shortfall gives a weight of 1.2 in the young-population example, where absolute shortfall of 18.5 gives 1.7. Both measures are assessed and the higher weight is used.

  • Applying the weight to total QALYs

    The weight multiplies the incremental QALYs of the new technology over current care, not the total QALYs that patients would have anyway.

Sources

  • NICE QALY weightings for severity

    National Institute for Health and Care Excellence. NICE technology appraisal and highly specialised technologies guidance: the manual (PMG36). Published 31 January 2022, last updated 31 March 2026. Chapter 6 Committee recommendations, section 6.2.18 and table 6.1 (weights of 1, 1.2 and 1.7; proportional shortfall cut-offs 0.85 and 0.95; absolute shortfall cut-offs 12 and 18; whichever implies greater severity; values on a cut-off take the higher level), sections 6.2.12, 6.2.19 and 6.2.20 (scope) and section 6.3.2 (net health benefit with and without the QALY weighting).

    View source →

  • Weights applied to incremental QALYs

    Wailoo A. NICE DSU Technical Support Document 23: A guide to calculating severity shortfall for NICE evaluations. Sheffield: Decision Support Unit, ScHARR, University of Sheffield; January 2024, updated September 2026. Section 1 (weights are applied to incremental QALYs and the definition giving the highest weight is used) and section 6 (judgement when estimates are close to a threshold).

    View source →

Canonical Identity

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