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The impact of indirect costs on outcomes of health care programs

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  • Marc A. Koopmanschap
  • Frans F. H. Rutten

Abstract

The impact of including indirect costs of disease (as a result of absence from work, disability and mortality) on outcomes of economic evaluations of specific health care programs is analyzed. For eight health care programs, changes in indirect costs are estimated using the friction cost method, that seeks to estimate the economic losses due to disease or the economic gains of health care programs. The impact of indirect costs on outcomes varies considerably across programs. Indirect costs tend to play an important role if health care programs produce health effects in the short run, if (short term) absence from work is affected considerably and if a significant proportion of the target population is employed at the moment they benefit from the program. The possible induction of treatment related absence from work and disability may also be relevant.

Suggested Citation

  • Marc A. Koopmanschap & Frans F. H. Rutten, 1994. "The impact of indirect costs on outcomes of health care programs," Health Economics, John Wiley & Sons, Ltd., vol. 3(6), pages 385-393, November.
    • Handle: RePEc:wly:hlthec:v:3:y:1994:i:6:p:385-393
    DOI: 10.1002/hec.4730030606
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    References listed on IDEAS

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    1. Koopmanschap, Marc A. & Lubbe, Koos Th. N. & van Oortmarssen, Gerrit J. & van Agt, Heleen M. A. & van Ballegooijen, Marjolein & Habbema, J. Dik F., 1990. "Economic aspects of cervical cancer screening," Social Science & Medicine, Elsevier, vol. 30(10), pages 1081-1087, January.
    2. Karen Gerard & Gavin Mooney, 1993. "Qaly league tables: Handle with care," Health Economics, John Wiley & Sons, Ltd., vol. 2(1), pages 59-64, April.
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    Cited by:

    1. Jamison Pike & Scott D. Grosse, 2018. "Friction Cost Estimates of Productivity Costs in Cost-of-Illness Studies in Comparison with Human Capital Estimates: A Review," Applied Health Economics and Health Policy, Springer, vol. 16(6), pages 765-778, December.
    2. Stephen K.O. Duku & Edward Nketiah-Amponsahd & Christine J. Fenenga & Daniel K. Arhinful & Wendy (W.) Janssens & Menno (M.) Pradhan, 2018. "The Effect of Community Engagement on Healthcare Utilization and Health Insurance Enrolment in Ghana Results from a Randomized Experiment," Tinbergen Institute Discussion Papers 18-017/V, Tinbergen Institute.
    3. McIntyre, Diane & Thiede, Michael & Dahlgren, Göran & Whitehead, Margaret, 2006. "What are the economic consequences for households of illness and of paying for health care in low- and middle-income country contexts?," Social Science & Medicine, Elsevier, vol. 62(4), pages 858-865, February.
    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. Mennini, Francesco Saverio & Gitto, Lara, 2022. "Approaches to Estimating Indirect Costs in Healthcare: Motivations for Choice," MPRA Paper 112129, University Library of Munich, Germany.
    6. 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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