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The cost effectiveness of tapered versus abrupt discontinuation of oral cyclosporin microemulsion for the treatment of psoriasis.

OBJECTIVE: To assess the cost effectiveness of tapered versus abrupt discontinuation of a microemulsion formulation of cyclosporin in patients with chronic plaque psoriasis. METHODS: A cost-effectiveness analysis was performed in parallel with a non-blind, multicentre, international clinical trial of the safety and efficacy of intermittent short courses of cyclosporin. Direct and indirect costs were considered within a 1-year period following randomisation. PATIENTS: Patients with chronic plaque psoriasis inadequately controlled with topical treatment. STUDY PERSPECTIVE: The study was conducted from a societal perspective and was performed using data from Canada, Spain, Turkey and the UK. MAIN OUTCOMES MEASURES: The health outcome used was the total number of systemic therapy-free days (STFDs) over the first year. The mean incremental cost-effectiveness ratio (ICER) was determined by dividing the differences in average cost per patient by the differences in average STFDs per patient. RESULTS: The overall ICER was dominant because tapered discontinuation was associated with both lower costs and improved efficacy in comparison with abrupt discontinuation. Further analyses showed that tapered discontinuation was a cost-effective alternative to abrupt discontinuation therapy, even when a conservative definition for cost effectiveness was adopted. CONCLUSION: This cost-effectiveness analysis demonstrated that tapering cyclosporin was more cost effective than abruptly stopping cyclosporin in patients with chronic plaque psoriasis.

Administration, Oral↗

Financial management and DRGs.

Healthcare providers face increasing financial risk as the federal government continues to refine the DRG-based prospective payment system. Healthcare providers that survive must establish systems that provide information in resource need, consumption and cost. The process illustrated in this article will help healthcare providers identify and establish the necessary systems.

Accounting↗

Indirect cost of ischemic heart disease to employers.

BACKGROUND: The management of healthcare programs by employers requires accurate information about the indirect and direct costs of important chronic diseases. OBJECTIVE: To determine the indirect costs of ischemic heart disease from the perspective of the employer in private industry in the United States. DESIGN: Indirect cost of illness analysis using the human capital approach, taking the perspective of the employer rather than that of society. METHODS: Ischemic heart disease was identified in a proprietary claims database of 3.1 million insured persons using an algorithm based on administrative codes. Economic data were derived from the Bureau of Labor Statistics, the Employment Management Association, and published sources. Work-loss data were taken from the National Center for Health Statistics' Health Interview Survey. The indirect cost was calculated as the sum of the costs due to morbidity and mortality. From the perspective of the employer, morbidity costs come from lost productivity, idle assets, and nonwage factors resulting from absenteeism and mortality costs are expenditures for replacing and retraining workers. This differs from calculations from the societal perspective, in which indirect costs are the value of an individual's lost income--both current and potential. RESULTS: The total indirect cost of ischemic heart disease to employers in private industry was $182.74 per enrollee. Ninety-five percent of the indirect cost was the consequence of work loss due to morbidity rather than of mortality costs. CONCLUSION: From the perspective of the employer, the indirect cost of ischemic heart disease is overwhelmingly due to morbidity costs.

Adult↗

A patient mix model for hospital financial planning.

A linear programming model was formulated to examine the impact on hospital finances and resource use of changes in patient mix under current and proposed government reimbursement regulations. The model specifically incorporated the costs, revenues, and resource consumption patterns associated with patients drawn from different intensity level and payer class combinations. The necessary data were obtained from financial reports and other records, and the model was used in policy analysis at a major university teaching hospital.

Costs and Cost Analysis↗

Terminal care costs in childhood cancer.

PURPOSE: To present a conceptualization of health care costs and to describe costs of health care in the terminal phase of childhood cancer. To present an exploratory comparison of the costs of terminal care in the hospital versus home care services, and to discuss the use of cost research in nursing practice. METHOD: Telephone interviews were done approximately 16 months after the death of a child to retrospectively ascertain services used, costs to the family, and insurance information. Provider billing and insurance data were subsequently collected. The families were divided into two groups based upon the use of home care or traditional hospital care during the terminal phase. FINDINGS: Home care was less expensive for total costs than hospital care. Home care was more expensive for nonhealth care and indirect costs than hospital care. CONCLUSIONS: Nurses should consider direct health care costs, nondirect health care costs, and indirect costs when assisting family decisions about care. Nurses and families should be aware of potential cost shifting.

Direct Service Costs↗

Local public health cost study in Georgia.

Development of a uniform cost study methodology for local health department services in Georgia began with a desire to negotiate cost-based reimbursement from Medicaid. Managed care and the Health Insurance Portability and Accountability Act requirements for common coding standards added impetus to Georgia's efforts to document the cost of local public health. With a determination that the result was achievable, the Division of Public Health contracted with a medical practice management firm. What followed included a major team effort with active working groups of county, district, and state representatives. A template was developed by the consultants to compile the cost report and automated applications were installed. Statewide training engaged the local public health workforce and led to a successful pilot project. This article describes the interactive process that led ultimately to the ability of every county in the state to produce a valid cost report. The cost of direct services provided for individuals by county health departments can now be calculated with a cost per relative value unit. The cost report also includes the cost of environmental health, dental health, population-based services and all other local public health services. A brief description of the methodology is presented.

Accounting↗

Direct costs and expenditures for mental health care in the United States in 1980.

Estimates of direct costs and expenditures for mental health care in 1980 are presented in this analysis. Besides estimates for the specialty mental health sector, the general medical sector, and the human service sector (schools and the criminal justice system), the authors include transportation costs and expenditures for transfer payments. They obtained a low total estimate of $19.2 billion and a high total estimate of $22 billion. Comparisons with previous estimates indicate an annual growth rate in real costs for mental health care of about 1.7 percent since 1971.

Community Mental Health Centers↗

The price of guidelines: revising the national guidelines for managing Australian women with abnormal pap smears.

Australia utilises nationally approved guidelines for managing women with abnormal Pap smears. The guidelines were recently revised using the process designated by the National Health and Medical Research Council. Revising the guidelines was protracted and controversial. This paper explores the reasons for the difficulties encountered and queries the cost of undertaking such work.

Australia↗

The economic burden of major adult visual disorders in the United States.

OBJECTIVE: To estimate the societal economic burden and the governmental budgetary impact of the following visual disorders among US adults aged 40 years and older: visual impairment, blindness, refractive error, age-related macular degeneration, cataracts, diabetic retinopathy, and primary open-angle glaucoma. DESIGN: We estimated 3 components of economic burden: direct medical costs, other direct costs, and productivity losses. We used private insurance and Medicare claims data to estimate direct medical costs; epidemiologic evidence from multiple published sources to estimate other direct costs, such as nursing home costs; and data from the Survey of Income and Program Participation to estimate productivity losses. We used budgetary documents and our direct medical and other direct cost estimates to approximate the governmental budgetary impact. RESULTS: We estimated that the annual total financial burden of major adult visual disorders is $35.4 billion ($16.2 billion in direct medical costs, $11.1 billion in other direct costs, and $8 billion in productivity losses) and that the annual governmental budgetary impact is $13.7 billion. CONCLUSIONS: Major visual disorders among Americans older than 40 years result in substantial economic costs for the US economy. Well-designed public health programs may have the ability to reduce this burden in the future.

Absenteeism↗

The cost-effectiveness of diagnostic strategies in patients with suspected pulmonary embolism.

The cost-effectiveness of various diagnostic strategies in patients with clinically suspected pulmonary embolism (PE) was analysed using a modelling approach. In 451 consecutive patients with clinically suspected PE data on the performance of diagnostic tests were collected prospectively in two large teaching hospitals in Amsterdam, The Netherlands. The ventilation-perfusion lung scan was used as the primary diagnostic test in all patients. In patients with a non-diagnostic lung scan result the performance of a clinical decision rule, a D-dimer test, and ultrasonography of the leg veins was evaluated with pulmonary angiography as the gold standard. It was estimated that the strategy recommended by a 1992 Dutch consensus meeting costs about Dfl 4400 per patient and that 97.02% of the patients can be expected to survive the first 6 months after the primary PE. The nation-wide annual costs for the diagnosis and treatment of patients by this strategy were estimated at 163 million Dutch Guilders. Subsequently, the costs and effects of alternative strategies were evaluated in a modelling approach, and compared with those of the consensus strategy. One strategy was selected that produces the best results in terms of survival and leads to considerable savings as compared with the consensus strategy. In this strategy subsequently a ventilation-perfusion scan, a clinical decision rule, a D-dimer test, a pulmonary angiography and leg ultrasonography are performed. Patients with a high probability ventilation-perfusion scan, an abnormal angiography or leg ultrasound test are treated, whereas treatment is withheld in patients with a normal ventilation-perfusion scan, a normal clinical decision rule, a negative D-dimer test, a normal angiography, or a normal leg ultrasound test. This strategy will have to prove its value and usefulness in clinical practice in a subsequent prospective validation phase.

Anticoagulants↗

Relationship between seizure frequency and costs and quality of life of outpatients with partial epilepsy in France, Germany, and the United Kingdom.

PURPOSE: The relationship between seizure frequency and both health care costs and quality of life (QOL) was investigated in a retrospective, cross-sectional, multicenter study in France, Germany, and the United Kingdom. METHODS: Three hundred outpatients with stable partial epilepsy were approximately evenly distributed among five seizure-frequency groups, ranging from seizure-free in the last 3 months (group 1) to daily seizures (group 5). Economic data, obtained through patient interviews and record abstraction, comprised direct medical costs, direct nonmedical costs, and indirect costs for the preceding 3 months. Total societal costs in the three countries were pooled and converted to United States dollar equivalents. QOL was assessed through a self-administered questionnaire, the Functional Status Questionnaire (FSQ). RESULTS: Mean total costs increased from $780 in group 1 to $2,171 in group 5 (p = 0.0001), with significant increases in each cost category as seizure frequency increased. Greater seizure frequency also significantly (p = 0.0270) correlated with lower employment rates, which ranged from 57% in group 1 to 30% in group 5. QOL declined as seizure frequency increased. Particularly affected were basic and intermediate activities of daily living (ADL), mental health, social activity, and feeling about health. CONCLUSIONS: The study results show that higher seizure frequencies are associated with higher direct and indirect costs and with reduced QOL for patients with epilepsy.

Adolescent↗

Dysphagia: a cost analysis of the diagnostic approach.

OBJECTIVES: The initial diagnostic approach for dysphagia is controversial. The choices include barium swallow (BaS) versus esophagogastroduodenoscopy (EGD). The aim of this study was to determine the clinical cost of establishing a diagnosis and treating dysphagia based on initial diagnostic approach (BaS vs EGD). METHODS: Clinical outcome of patients with undiagnosed dysphagia evaluated by either internists in a primary care clinic (n = 100) or gastroenterologists (n = 120) were determined based on the initial diagnostic test: BaS versus EGD. Final diagnoses in each group were determined based on any testing performed subsequent to the initial studies. Total cost in achieving the final diagnosis for each group were determined based on 2002 Medicare reimbursement cost. RESULTS: BaS (66% and 62%) and EGD (34% and 38%) were ordered in equal prevalence by gastroenterologists and internists, respectively. Final diagnoses included: benign obstruction (37% and 36%), gastroesophageal reflux disease (GERD) (18% and 44%), achalasia (17% and 1%), nonspecific esophageal motility disorder (NSEMD) (17% and 11%), neoplasm (7% and 6%), and infectious esophagitis (4% and 2%) in subspecialty and primary care clinics, respectively. Motility disorders (NSEMD and achalasia) was diagnosed more often by gastroenterologists (40 of 120, 34%) than by internists (12 of 100, 12%) (p < 0.001). GERD was the predominant diagnosis made by internists (44 of 100, 44%) compared to gastroenterologists (22 of 120, 18%) (p < 0.001). Although the cost of diagnosing benign obstruction was less for BaS ($73 +/- 13) than EGD ($370 +/- 5, p < 0.001), subsequent therapy with dilation increased the cost for barium testing first (BaS $602 +/- 22 vs EGD $515 +/- 5, p < 0.02). Cost of diagnosis or treatment of esophageal dysmotility (achalasia/NSEMD) was significantly (p < 0.001) less using BaS as the initial test. CONCLUSIONS: 1) BaS is less costly than EGD for diagnoses and treatment involving abnormal motility. 2) Initial EGD with therapeutic intent is less costly for patients with history suggesting benign obstruction. 3) Primary care physicians identified GERD and benign obstructions as the cause of dysphagia more often in their patient group than the gastroenterologists, making EGD a reasonable initial test in this setting instead of currently practiced BaS.

Aged↗