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Towards a new approach for estimating indirect costs of disease

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  • Koopmanschap, Marc A.
  • van Ineveld, B. Martin

Abstract

Many researchers in the field of evaluation of health care doubt the usefulness of estimates of indirect costs of disease in setting priorities in health care. This paper attempts to meet part of the criticism on the concept of indirect costs, which are defined as the value of production lost to society due to disease. Thus far in cost of illness studies and cost-effectiveness analyses the potential indirect costs of disease were calculated. In the following a first step will be taken towards a new method for estimating indirect costs which are expected to be effectuated in reality: the friction cost method. This method explicitly takes into account short and long run processes in the economy which reduce the production losses substantially as compared with the potential losses. According to this method production losses will be confined to the period needed to replace a sick worker: the so called friction period. The length of this period and the resulting indirect costs depend on the situation on the labour market. Some preliminary results are presented for the indirect costs of the incidence of cardiovascular disease in the Netherlands for 1988, both for the friction costs and the potential costs. The proposed methodology for estimating indirect costs is promising, but needs further development. The consequences of illness in people without a paid job need to be incorporated in the analysis. Also the relation between internal labour reserves and costs of disease should be further investigated. Next to this, more refined labour market assumptions, allowing for diverging situations on different segments of the labour market are necessary.

Suggested Citation

  • Koopmanschap, Marc A. & van Ineveld, B. Martin, 1992. "Towards a new approach for estimating indirect costs of disease," Social Science & Medicine, Elsevier, vol. 34(9), pages 1005-1010, May.
    • Handle: RePEc:eee:socmed:v:34:y:1992:i:9:p:1005-1010
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    Citations

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    Cited by:

    1. van Roijen, Leona & Koopmanschap, Marc A. & Rutten, Frans F. H. & van der Maas, Paul J., 1995. "Indirect costs of disease; an international comparison," Health Policy, Elsevier, vol. 33(1), pages 15-29, July.
    2. Michal Jakubczyk & Beata Kon, 2016. "The impact of firms' expectations & adjustments on the productivity cost of illness," KAE Working Papers 2016-008, Warsaw School of Economics, Collegium of Economic Analysis.
    3. Andronis, Lazaros & Morgan, Cameron & Donaldson, Cam & Lancsar, Emily & Petrou, Stavros, 2023. "Views, obstacles, and uncertainties around the inclusion of children and young people's time in economic evaluations: Findings from an international survey of health economists," Social Science & Medicine, Elsevier, vol. 333(C).
    4. Tarricone, Rosanna, 2006. "Cost-of-illness analysis: What room in health economics?," Health Policy, Elsevier, vol. 77(1), pages 51-63, June.
    5. Mangen, Marie-Josee J. & Havelaar, Arie H. & Nauta, Maarten J. & de Koeijer, Aline A. & de Wit, G. Ardine, 2005. "Controlling Campylabacter in the Chicken Meat Chain: A Cost-Utility Analysis," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24763, European Association of Agricultural Economists.
    6. Jesse Kigozi & Sue Jowett & Martyn Lewis & Pelham Barton & Joanna Coast, 2016. "Estimating productivity costs using the friction cost approach in practice: a systematic review," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 17(1), pages 31-44, January.
    7. Pascal Crépey & Esther Redondo & Javier Díez-Domingo & Raúl Ortiz de Lejarazu & Federico Martinón-Torres & Ángel Gil de Miguel & Juan Luis López-Belmonte & Fabián P Alvarez & Hélène Bricout & Míriam S, 2020. "From trivalent to quadrivalent influenza vaccines: Public health and economic burden for different immunization strategies in Spain," PLOS ONE, Public Library of Science, vol. 15(5), pages 1-19, May.
    8. Marieke Krol & Elly Stolk & Werner Brouwer, 2014. "Predicting productivity based on EQ-5D: an explorative study," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 15(5), pages 465-475, June.
    9. Juan Oliva-Moreno, 2012. "Loss of labour productivity caused by disease and health problems: what is the magnitude of its effect on Spain’s Economy?," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 13(5), pages 605-614, October.
    10. Hassan Serrier & Hélène Sultan-Taieb & Danièle Luce & Sophie Bejean, 2014. "Estimating the social cost of respiratory cancer cases attributable to occupational exposures in France," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 15(6), pages 661-673, July.
    11. Krol, Marieke & Brouwer, Werner B.F. & Severens, Johan L. & Kaper, Janneke & Evers, Silvia M.A.A., 2012. "Productivity cost calculations in health economic evaluations: Correcting for compensation mechanisms and multiplier effects," Social Science & Medicine, Elsevier, vol. 75(11), pages 1981-1988.
    12. Hanly, Paul & Ortega Ortega, Marta & Pearce, Alison & Soerjomataram, Isabelle & Sharp, Linda, 2020. "Advances in the methodological approach to friction period estimation: A European perspective," Social Science & Medicine, Elsevier, vol. 264(C).
    13. Bugge, Christoffer & Sæther, Erik Magnus & Brustugun, Odd Terje & Kristiansen, Ivar Sønbø, 2021. "Societal cost of cancer in Norway –Results of taking a broader cost perspective," Health Policy, Elsevier, vol. 125(8), pages 1100-1107.
    14. Brouwer, W. B. F. & van Exel, N. J. A. & Koopmanschap, M. A. & Rutten, F. F. H., 2002. "Productivity costs before and after absence from work: as important as common?," Health Policy, Elsevier, vol. 61(2), pages 173-187, August.
    15. Koopmanschap, Marc A. & Rutten, Frans F. H. & van Ineveld, B. Martin & van Roijen, Leona, 1995. "The friction cost method for measuring indirect costs of disease," Journal of Health Economics, Elsevier, vol. 14(2), pages 171-189, June.
    16. Coast, Joanna, 2018. "A history that goes hand in hand: Reflections on the development of health economics and the role played by Social Science & Medicine, 1967–2017," Social Science & Medicine, Elsevier, vol. 196(C), pages 227-232.

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