IDEAS home Printed from https://ideas.repec.org/p/upf/upfgen/1138.html
   My bibliography  Save this paper

Estimates of patient costs related with population morbidity: Can indirect costs affect the results?

Author

Listed:
  • M. Carreras
  • Manuel García-Goñi
  • Pere Ibern
  • J. Coderch
  • L. Vall-Llosera
  • José María Inoriza

Abstract

A number of health economics works require patient cost estimates as a basic information input. However the accuracy of cost estimates remains in general unspecified. We propose to investigate how the allocation of indirect costs or overheads can affect the estimation of patient costs in order to allow for improvements in the analysis of patient costs estimates. Instead of focusing on the costing method, this paper proposes to highlight changes in variance explained observed when a methodology is chosen. We compare three overhead allocation methods for a specific Spanish population adjusted using the Clinical Risk Groups (CRG), and we obtain different series of full-cost group estimates. As a result, there are significant gains in the proportion of the variance explained, depending upon the methodology used. Furthermore, we find that the global amount of variation explained by risk adjustment models depends mainly on direct costs and is independent of the level of aggregation used in the classification system.

Suggested Citation

  • M. Carreras & Manuel García-Goñi & Pere Ibern & J. Coderch & L. Vall-Llosera & José María Inoriza, 2009. "Estimates of patient costs related with population morbidity: Can indirect costs affect the results?," Economics Working Papers 1138, Department of Economics and Business, Universitat Pompeu Fabra.
    • Handle: RePEc:upf:upfgen:1138
    as

    Download full text from publisher

    File URL: https://econ-papers.upf.edu/papers/1138.pdf
    File Function: Whole Paper
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sarah Wordsworth & Anne Ludbrook & Fergus Caskey & Alison Macleod, 2005. "Collecting unit cost data in multicentre studies," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 6(1), pages 38-44, March.
    2. Zsolt Mogyorosy & Peter Smith, 2005. "The main methodological issues in costing health care services: A literature review," Working Papers 007cherp, Centre for Health Economics, University of York.
    3. Jan B. Oostenbrink & Maiwenn J. Al, 2005. "The analysis of incomplete cost data due to dropout," Health Economics, John Wiley & Sons, Ltd., vol. 14(8), pages 763-776, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. M. Carreras & M. García-Goñi & P. Ibern & J. Coderch & L. Vall-Llosera & J. Inoriza, 2011. "Estimates of patient costs related with population morbidity: can indirect costs affect the results?," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 12(4), pages 289-295, August.
    2. Hoa Thi Nguyen & Manuela Allegri & Jörg Heil & André Hennigs, 2023. "Population-Level Impact of Omitting Axillary Lymph Node Dissection in Early Breast Cancer Women: Evidence from an Economic Evaluation in Germany," Applied Health Economics and Health Policy, Springer, vol. 21(2), pages 275-287, March.
    3. Pokhilenko, I. & Kast, T. & Janssen, L. M.M. & Evers, S. M.A.A. & Paulus, A. T.G. & Simon, J. & Mayer, S. & Berger, M. & Konnopka, A. & Muntendorf, L. & Brodszky, V. & García-Pérez, L. & Park, A-La & , 2023. "International comparability of reference unit costs of education services: when harmonizing methodology is not enough (PECUNIA project)," LSE Research Online Documents on Economics 117769, London School of Economics and Political Science, LSE Library.
    4. Frank G. Sandmann & Julie V. Robotham & Sarah R. Deeny & W. John Edmunds & Mark Jit, 2018. "Estimating the opportunity costs of bed‐days," Health Economics, John Wiley & Sons, Ltd., vol. 27(3), pages 592-605, March.
    5. Diriba Feyisa & Kiddus Yitbarek & Teferi Daba, 2021. "Cost of provision of essential health Services in Public Health Centers of Jimma zone, Southwest Ethiopia; a provider perspective, the pointer for major area of public expenditure," Health Economics Review, Springer, vol. 11(1), pages 1-15, December.
    6. Josephine C. Jacobs & Paul G. Barnett, 2017. "Emergent Challenges in Determining Costs for Economic Evaluations," PharmacoEconomics, Springer, vol. 35(2), pages 129-139, February.
    7. Carlos Rojas-Roque & Alfredo Palacios, 2023. "A Systematic Review of Health Economic Evaluations and Budget Impact Analyses to Inform Healthcare Decision-Making in Central America," Applied Health Economics and Health Policy, Springer, vol. 21(3), pages 419-440, May.
    8. Chrysanthos D. Christou & Eleni C. Athanasiadou & Andreas I. Tooulias & Argyrios Tzamalis & Georgios Tsoulfas, 2022. "The process of estimating the cost of surgery: Providing a practical framework for surgeons," International Journal of Health Planning and Management, Wiley Blackwell, vol. 37(4), pages 1926-1940, July.
    9. Leslie R. Zwerwer & Jan Kloka & Simon Pol & Maarten J. Postma & Kai Zacharowski & Antoinette D. I. Asselt & Benjamin Friedrichson, 2024. "Mechanical ventilation as a major driver of COVID-19 hospitalization costs: a costing study in a German setting," Health Economics Review, Springer, vol. 14(1), pages 1-17, December.
    10. Raulinajtys-Grzybek, Monika, 2014. "Cost accounting models used for price-setting of health services: An international review," Health Policy, Elsevier, vol. 118(3), pages 341-353.
    11. Zuzana Špacírová & David Epstein & Leticia García-Mochón & Joan Rovira & Antonio Olry de Labry Lima & Jaime Espín, 2020. "A general framework for classifying costing methods for economic evaluation of health care," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 21(4), pages 529-542, June.
    12. Claudia Fischer & Susanne Mayer & Nataša Perić & Judit Simon, 2022. "Harmonization issues in unit costing of service use for multi-country, multi-sectoral health economic evaluations: a scoping review," Health Economics Review, Springer, vol. 12(1), pages 1-13, December.
    13. David K. Blough & Scott Ramsey & Sean D. Sullivan & Roger Yusen, 2009. "The impact of using different imputation methods for missing quality of life scores on the estimation of the cost‐effectiveness of lung‐volume‐reduction surgery," Health Economics, John Wiley & Sons, Ltd., vol. 18(1), pages 91-101, January.
    14. Klaus Kaier & Silvia Hils & Stefan Fetzer & Philip Hehn & Anja Schmid & Dieter Hauschke & Lioudmila Bogatyreva & Bernd Jänigen & Przemyslaw Pisarski, 2017. "Results of a randomized controlled trial analyzing telemedically supported case management in the first year after living donor kidney transplantation - a budget impact analysis from the healthcare pe," Health Economics Review, Springer, vol. 7(1), pages 1-8, December.
    15. Lucy Cunnama & Edina Sinanovic & Lebogang Ramma & Nicola Foster & Leigh Berrie & Wendy Stevens & Sebaka Molapo & Puleng Marokane & Kerrigan McCarthy & Gavin Churchyard & Anna Vassall, 2016. "Using Top‐down and Bottom‐up Costing Approaches in LMICs: The Case for Using Both to Assess the Incremental Costs of New Technologies at Scale," Health Economics, John Wiley & Sons, Ltd., vol. 25(S1), pages 53-66, February.
    16. Banke-Thomas, Aduragbemi & Ayomoh, Francis & Aberjirinde, Ibukun-Oluwa & Banke-Thomas, Oluwasola & Eboreime, Ejemai Amaize & Ameh, Charles, 2021. "Cost of utilising maternal health services in low- and middle-income countries: a systematic review," LSE Research Online Documents on Economics 105081, London School of Economics and Political Science, LSE Library.
    17. Charlotte Deogan & Natalie Zarabi & Nils Stenström & Pi Högberg & Eva Skärstrand & Edison Manrique-Garcia & Kristian Neovius & Anna Månsdotter, 2015. "Cost-Effectiveness of School-Based Prevention of Cannabis Use," Applied Health Economics and Health Policy, Springer, vol. 13(5), pages 525-542, October.
    18. Tina Olsson, 2011. "Comparing top-down and bottom-up costing approaches for economic evaluation within social welfare," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 12(5), pages 445-453, October.
    19. Susanne Mayer & Michael Berger & Nataša Perić & Claudia Fischer & Alexander Konnopka & Valentin Brodszky & Silvia M. A. A. Evers & Leona Hakkaart-van Roijen & Mencia Ruiz Guitérrez Colosia & Luis Salv, 2024. "The Development of a New Approach for the Harmonized Multi-Sectoral and Multi-Country Cost Valuation of Services: The PECUNIA Reference Unit Cost (RUC) Templates," Applied Health Economics and Health Policy, Springer, vol. 22(6), pages 783-796, November.
    20. Susanne Mayer & Michael Berger & Alexander Konnopka & Valentin Brodszky & Silvia M. A. A. Evers & Leona Hakkaart-van Roijen & Mencia R. Guitérrez-Colosia & Luis Salvador-Carulla & A-La Park & William , 2022. "In Search for Comparability: The PECUNIA Reference Unit Costs for Health and Social Care Services in Europe," IJERPH, MDPI, vol. 19(6), pages 1-15, March.

    More about this item

    Keywords

    Patient costs; Clinical Risk Groups; Variation explained; Overhead allocation;
    All these keywords.

    JEL classification:

    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:upf:upfgen:1138. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: http://www.econ.upf.edu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.