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Correcting for compensating mechanisms related to productivity costs in economic evaluations of health care programmes

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  • Karin H. M. Jacob‐Tacken
  • Marc A. Koopmanschap
  • Willem Jan Meerding
  • Johan L. Severens

Abstract

In the economic evaluation of health care programmes, productivity costs are often estimated using patients' wages for the period of absence. However, the use of such methods for short periods of absence is controversial. A previous study found that short‐term absence is often compensated for during normal working hours and therefore does not lead to productivity losses. As such, the application of any approach almost certainly overestimates productivity costs. In this study, we examined the productivity costs for five different patient populations and one employee population, using the classical method and by identifying when extra effort was needed. In general, the results showed that productivity costs based on identifying extra effort were 25–30% of the classical estimates. For absences of just one day, productivity costs were relevant in only 17–19% of cases. For absences of two weeks or longer, productivity costs were relevant in 35–39% of cases. Measurement of the compensating mechanisms seemed to be valid, since there is considerable agreement between the opinion of supervisors and their employees about whether compensation covers productivity costs. There was much less agreement between supervisors and their employees on specific compensating mechanisms, however. The measurement of compensating mechanisms also seemed to be valid, because – as expected – different compensating mechanisms were reported for different occupations. In our study populations, compensating mechanisms appeared to differ with occupational characteristics, like part‐time work, managerial work and shift work. Copyright © 2004 John Wiley & Sons, Ltd.

Suggested Citation

  • Karin H. M. Jacob‐Tacken & Marc A. Koopmanschap & Willem Jan Meerding & Johan L. Severens, 2005. "Correcting for compensating mechanisms related to productivity costs in economic evaluations of health care programmes," Health Economics, John Wiley & Sons, Ltd., vol. 14(5), pages 435-443, May.
  • Handle: RePEc:wly:hlthec:v:14:y:2005:i:5:p:435-443
    DOI: 10.1002/hec.948
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    References listed on IDEAS

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    1. 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.
    2. 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.
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    Cited by:

    1. Zhang, Wei & Bansback, Nick & Anis, Aslam H., 2011. "Measuring and valuing productivity loss due to poor health: A critical review," Social Science & Medicine, Elsevier, vol. 72(2), pages 185-192, January.
    2. John Slof, 2012. "Cost-effectiveness analysis of early versus non-early intervention in acute migraine based on evidence from the ‘Act when Mild’ study," Applied Health Economics and Health Policy, Springer, vol. 10(3), pages 201-215, May.
    3. Kyra Kneis & Afschin Gandjour, 2009. "Economic evaluation of Sinfrontal®in the treatment of acute maxillary sinusitis in adults," Applied Health Economics and Health Policy, Springer, vol. 7(3), pages 181-191, September.
    4. Werner Brouwer & Kaya Verbooy & Renske Hoefman & Job Exel, 2023. "Production Losses due to Absenteeism and Presenteeism: The Influence of Compensation Mechanisms and Multiplier Effects," PharmacoEconomics, Springer, vol. 41(9), pages 1103-1115, September.
    5. Kenneth Tang, 2015. "Estimating Productivity Costs in Health Economic Evaluations: A Review of Instruments and Psychometric Evidence," PharmacoEconomics, Springer, vol. 33(1), pages 31-48, January.
    6. Marieke Krol & Nikkie Hosseinnia & Werner Brouwer & Leona Hakkaart Roijen, 2023. "Multiplier Effects and Compensation Mechanisms for Inclusion in Health Economic Evaluation: A Systematic Review," PharmacoEconomics, Springer, vol. 41(9), pages 1031-1050, September.
    7. Judith E Bosmans & Veerle M H Coupé & Bart J Knottnerus & Suzanne E Geerlings & Eric P Moll van Charante & Gerben ter Riet, 2017. "Cost-effectiveness of different strategies for diagnosis of uncomplicated urinary tract infections in women presenting in primary care," PLOS ONE, Public Library of Science, vol. 12(11), pages 1-16, November.
    8. 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.

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