Friction-Cost Method as an Alternative to the Human-Capital Approach in Calculating Indirect Costs

AbstractIntroductionThe consequences of disease on work for individual patients as well as the consequences of absenteeism from work are subjects of interest for decision-makers.MethodsWe analyzed duration of absenteeism and related indirect costs for patients with a paid job during the year following diagnosis of early-stage breast cancer in the prospective OPTISOINS01 cohort. A human capital and friction costs approaches were considered for evaluation of lost working days. For this analysis, the friction period was estimated from recent French data. Statistical analysis included simple and multiple linear regression to identify determinants of absenteeism and indirect costs.Results93% of patients had at least one period of sick leave, with an average of 2 periods of sick leave and a mean total duration of 186 days. 24% of patients returned to work part-time after an average sick leave of 114 days (i.e. 41 LWD). Estimated indirect costs were €22,722.00 and €7,724.00 per patient, for the human capital and friction cost approaches, respectively. In the multiple linear regression model, factors associated with absenteeism were: invasive tumor (p=.043), mastectomy (p=.038), redo surgery (p=.002), chemotherapy (p=.027), being a manager (p=.025) or a craftsman (p=.005).ConclusionBreast cancer is associated with long periods of absenteeism during the year following diagnosis, but almost all patients were able to return to work. Major differences in the results were observed between the friction cost and human capital approaches, highlighting the importance of considering both approaches in such studies.

Download Full-text

Estimation of Socioeconomic Burden of Lung Cancer in the Russian Federation

Medical Technologies Assessment and Choice (Медицинские технологии Оценка и выбор) ◽

10.31556/2219-0678.2018.34.4.063-075 ◽

2018 ◽

pp. 63-75 ◽

Cited By ~ 2

Author(s):

Maria Avxentyeva ◽

Filipp Gorkavenko ◽

Anna Nikitina ◽

Anastasia Savilova ◽

Ksenia Gerasimova ◽

...

Keyword(s):

Lung Cancer ◽

Russian Federation ◽

Economic Burden ◽

Indirect Costs ◽

Medical Costs ◽

Newly Diagnosed ◽

Friction Cost ◽

The Russian Federation ◽

Friction Cost Method ◽

The Impact

The aim of this study was to estimate the socio-economic burden of lung cancer (LC) in the Russian Federation. Methodology: the social burden of LC is defined as the number of patients newly diagnosed with LC in 2016, those who are followed-up in oncology clinics, disabled and deceased persons. The economic burden consists of total direct and indirect costs associated with LC and estimated from a government perspective. Direct medical costs include costs for diagnosis, inpatient and outpatient treatment, palliative care, follow-up costs, and expenditures for the subsidized drug coverage. Direct non-medical costs include payments for sickness and disability caused by LC. Indirect costs were calculated as a loss of a gross domestic product due to LC morbidity and mortality. Calculations were based on the methods described in Ignatieva V. I. et al. (2014) and adapted by the authors of this study to new methods of inpatient medical care payment. Indirect costs were calculated by the friction cost method. The sensitivity analysis was conducted to estimate the impact of initial parameters` variations, as well as the impact of indirect costs estimation with the human capital methods, on the results. Results. In 2016, medical care was provided to 185,631 patients with LC, of whom 51,768 (27.9%) were newly diagnosed during the year. Direct medical costs were about 6.83 billion rubles. Most costs were incurred in inpatient care (4.09 billion rubles, 60.0%) and for the subsidized drug coverage (1.49 billion rubles, 21.8%). Direct non-medical expenses were about 5.76 billion rubles, 5.16 billion (89.7%) were disability-related payments. Indirect costs were about 14.77 billion rubles (friction cost method).

Download Full-text

The economic impact of cancer-related premature mortality in Brazil: A human capital approach analysis.

Journal of Clinical Oncology ◽

10.1200/jco.2020.38.15_suppl.7068 ◽

2020 ◽

Vol 38 (15_suppl) ◽

pp. 7068-7068

Author(s):

Marianna De Camargo Cancela ◽

Leonardo Borges Lopes de Souza ◽

Luis Felipe Leite Martins ◽

Dyego Souza ◽

Anton Barchuk ◽

...

Keyword(s):

Human Capital ◽

Economic Impact ◽

Productivity Loss ◽

Indirect Costs ◽

Premature Mortality ◽

Human Capital Approach ◽

Cancer Type ◽

Regional Patterns ◽

The North ◽

The Impact

7068 Background: One method of calculating indirect costs of cancer is the analysis of productivity loss. Using the human capital approach, we estimate how much cancer-related premature mortality indirectly impacts the economy. Given the diverse causes of cancer death and sociodemographic profiles in Brazil, we estimated lost productivity due to cancer by regions, providing evidence for local decision-makers. Methods: Data of all cancers deaths among working-age people (15-64 years for men and 15-60 for women) occurring in 2016 were extracted from the National Mortality System, by region, sex and age-group. Data on life expectancy, workforce participation, unemployment and wages were extracted from the Brazilian National Institute of Geographics and Statistics. Loss of productivity was calculated as the value of time between death and potential retirement age. Results: In total 536,827 (men) and 407,737 (women) years of potential productive life (YPPLL) were lost in 2016, corresponding to US$ 6,196,682,092 (PPP) for Brazil. The profile of YPPLL by cancer type varied by region. In the affluent South and Southeast regions, the cancers with higher impact in men were lung (12.4% and 9.9% of total YPPLL) and colorectal (9.6% and 10.4% of total YPPLL) while in the less affluent North and Northeast, stomach cancer was responsible for 17% and 12% of YPPLL, respectively. Among women, breast cancer had the highest impact in all regions (21.7%-26.2%), excepting the North, where cervical cancer was responsible for 31.3% of the YPPLL. Nationally, individual YPPLL was higher for testicular cancer in males (31.3 years) and Hodgkin’s disease in females (20.2). In the North and the Northeast, despite lower mortality rates, the economic impact of productivity loss was higher, representing 0.23 and 0.29% of the regional GDP. Conclusions: Our results show the indirect economic impact of premature cancer mortality in Brazil, at a total cost of US$ 6,196,682,092 in 2016, representing 0.2% of the entire country’s GDP. The regional patterns highlight the need for adaption of public policies, typical from a country in transition, with the impact of lifestyle and infection-related cancers simultaneously and differently affecting economically the regions.

Download Full-text