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Incorporating Future Costs in Medical Cost-Effectiveness Analysis

Author

Listed:
  • Magnus Johannesson
  • David Meltzer
  • Richard M. O'Conor

Abstract

It has been shown that the difference between consumption and production during life years gained should be included as a cost in cost-effectiveness analysis. In this study the authors estimate the impact of including these future costs on the cost-effective ness of the treatment of hypertension in Sweden. The cost per quality-adjusted life year (QALY) gained changes little among young men and women due to the addition of future costs, but increases by about $14,000 for middle-aged men and women and about $27,000 for older men and women. When future costs are not included, the cost per QALY gained is generally lowest among older men and women, but when future costs are included, the cost per QALY gained is generally lowest among middle-aged men and women. The authors conclude that the total resource consequences of changes in mortality should be routinely considered in cost-effectiveness analyses. Key words: Cost-effectiveness analysis; economic evaluation; costs; societal per spective. (Med Decis Making 1997;17:382-389)

Suggested Citation

  • Magnus Johannesson & David Meltzer & Richard M. O'Conor, 1997. "Incorporating Future Costs in Medical Cost-Effectiveness Analysis," Medical Decision Making, , vol. 17(4), pages 382-389, October.
    • Handle: RePEc:sae:medema:v:17:y:1997:i:4:p:382-389
    DOI: 10.1177/0272989X9701700403
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    References listed on IDEAS

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    1. David Meltzer, 1997. "Accounting for Future Costs in Medical Cost-Effectiveness Analysis," NBER Working Papers 5946, National Bureau of Economic Research, Inc.
    2. Brooks, Richard G. & Jendteg, Stefan & Lindgren, Bjorn & Persson, Ulf & Bjork, Stefan, 1991. "EuroQol(c): health-related quality of life measurement. Results of the Swedish questionnaire exercise," Health Policy, Elsevier, vol. 18(1), pages 37-48, June.
    3. Johansson,Per-Olov, 1991. "An Introduction to Modern Welfare Economics," Cambridge Books, Cambridge University Press, number 9780521356954, September.
    4. Meltzer, David, 1997. "Accounting for future costs in medical cost-effectiveness analysis," Journal of Health Economics, Elsevier, vol. 16(1), pages 33-64, February.
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    2. Mira Johri & Laura J. Damschroder & Brian J. Zikmund‐Fisher & Peter A. Ubel, 2005. "The importance of age in allocating health care resources: does intervention‐type matter?," Health Economics, John Wiley & Sons, Ltd., vol. 14(7), pages 669-678, July.
    3. David Meltzer, 1997. "Accounting for Future Costs in Medical Cost-Effectiveness Analysis," NBER Working Papers 5946, National Bureau of Economic Research, Inc.
    4. Pedram Sendi & Huldrych F Günthard & Mathew Simcock & Bruno Ledergerber & Jörg Schüpbach & Manuel Battegay & for the Swiss HIV Cohort Study, 2007. "Cost-Effectiveness of Genotypic Antiretroviral Resistance Testing in HIV-Infected Patients with Treatment Failure," PLOS ONE, Public Library of Science, vol. 2(1), pages 1-8, January.
    5. 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.
    6. Clive Pritchard;Martin Sculpher, 2000. "Productivity Costs: Principles and Practice in Economic Evaluation," Monograph 000464, Office of Health Economics.
    7. Bengt Liljas & Göran S. Karlsson & Nils‐Olov Stålhammar, 2008. "On future non‐medical costs in economic evaluations," Health Economics, John Wiley & Sons, Ltd., vol. 17(5), pages 579-591, May.
    8. Peter Lindgren & Martin Buxton & Thomas Kahan & Neil Poulter & Björn Dahlöf & Peter Sever & Hans Wedel & Bengt Jönsson, 2009. "The Lifetime Cost Effectiveness of Amlodipine-Based Therapy Plus Atorvastatin Compared with Atenolol Plus Atorvastatin, Amlodipine-Based Therapy Alone and Atenolol-Based Therapy Alone," PharmacoEconomics, Springer, vol. 27(3), pages 221-230, March.
    9. Braden Manns & David Meltzer & Ken Taub & Cam Donaldson, 2003. "Illustrating the impact of including future costs in economic evaluations: an application to end‐stage renal disease care," Health Economics, John Wiley & Sons, Ltd., vol. 12(11), pages 949-958, November.
    10. Anna Ringborg & Peter Lindgren & Bengt Jönsson, 2005. "The cost-effectiveness of dual oral antiplatelet therapy following percutaneous coronary intervention," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 6(4), pages 354-362, December.
    11. Zethraeus, Niklas & Johansson, Per-Olov, 1997. "Willingness to Pay for Hormone Replacement Therapy," SSE/EFI Working Paper Series in Economics and Finance 214, Stockholm School of Economics.
    12. Jönsson, Linus & Borgström, Fredrik & Zethraeus, Niklas, 2002. "Cost-Effectiveness of Alendronate in the Treatment of Osteoporosis in Denmark - An Economic Evaluation Based on the Fracture Intervention Trial," SSE/EFI Working Paper Series in Economics and Finance 501, Stockholm School of Economics.
    13. Afschin Gandjour, 2009. "Aging diseases – do they prevent preventive health care from saving costs?," Health Economics, John Wiley & Sons, Ltd., vol. 18(3), pages 355-362, March.

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