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Incorporating indirect costs into a cost-benefit analysis of laparoscopic adjustable gastric banding.

Publication ,  Journal Article
Finkelstein, EA; Allaire, BT; Dibonaventura, MD; Burgess, SM
Published in: Value in Health : the Journal of the International Society for Pharmacoeconomics and Outcomes Research
March 2012

The objective of this study was to estimate the time to breakeven and 5-year net costs of laparoscopic adjustable gastric banding (LAGB) taking both direct and indirect costs and cost savings into account.Estimates of direct cost savings from LAGB were available from the literature. Although longitudinal data on indirect cost savings were not available, these estimates were generated by quantifying the relationship between medical expenditures and absenteeism and between medical expenditures and presenteeism (reduced on-the-job productivity) and combining these elasticity estimates with estimates of the direct cost savings to generate total savings. These savings were then combined with the direct and indirect costs of the procedure to quantify net savings.By including indirect costs, the time to breakeven was reduced by half a year, from 16 to 14 quarters. After 5 years, net savings in medical expenditures from a gastric banding procedure were estimated to be $4970 (±$3090). Including absenteeism increased savings to $6180 (±$3550). Savings were further increased to $10,960 (±$5864) when both absenteeism and presenteeism estimates were included.This study presented a novel approach for including absenteeism and presenteeism estimates in cost-benefit analyses. Application of the approach to gastric banding among surgery-eligible obese employees revealed that the inclusion of indirect costs and cost savings improves the business case for the procedure. This approach can easily be extended to other populations and treatments.

Duke Scholars

Published In

Value in Health : the Journal of the International Society for Pharmacoeconomics and Outcomes Research

DOI

EISSN

1524-4733

ISSN

1098-3015

Publication Date

March 2012

Volume

15

Issue

2

Start / End Page

299 / 304

Related Subject Headings

  • United States
  • Obesity
  • Male
  • Laparoscopy
  • Humans
  • Health Policy & Services
  • Health Care Surveys
  • Health Care Costs
  • Female
  • Costs and Cost Analysis
 

Citation

APA
Chicago
ICMJE
MLA
NLM
Finkelstein, E. A., Allaire, B. T., Dibonaventura, M. D., & Burgess, S. M. (2012). Incorporating indirect costs into a cost-benefit analysis of laparoscopic adjustable gastric banding. Value in Health : The Journal of the International Society for Pharmacoeconomics and Outcomes Research, 15(2), 299–304. https://doi.org/10.1016/j.jval.2011.12.004
Finkelstein, Eric A., Benjamin T. Allaire, Marco Dacosta Dibonaventura, and Somali M. Burgess. “Incorporating indirect costs into a cost-benefit analysis of laparoscopic adjustable gastric banding.Value in Health : The Journal of the International Society for Pharmacoeconomics and Outcomes Research 15, no. 2 (March 2012): 299–304. https://doi.org/10.1016/j.jval.2011.12.004.
Finkelstein EA, Allaire BT, Dibonaventura MD, Burgess SM. Incorporating indirect costs into a cost-benefit analysis of laparoscopic adjustable gastric banding. Value in Health : the Journal of the International Society for Pharmacoeconomics and Outcomes Research. 2012 Mar;15(2):299–304.
Finkelstein, Eric A., et al. “Incorporating indirect costs into a cost-benefit analysis of laparoscopic adjustable gastric banding.Value in Health : The Journal of the International Society for Pharmacoeconomics and Outcomes Research, vol. 15, no. 2, Mar. 2012, pp. 299–304. Epmc, doi:10.1016/j.jval.2011.12.004.
Finkelstein EA, Allaire BT, Dibonaventura MD, Burgess SM. Incorporating indirect costs into a cost-benefit analysis of laparoscopic adjustable gastric banding. Value in Health : the Journal of the International Society for Pharmacoeconomics and Outcomes Research. 2012 Mar;15(2):299–304.
Journal cover image

Published In

Value in Health : the Journal of the International Society for Pharmacoeconomics and Outcomes Research

DOI

EISSN

1524-4733

ISSN

1098-3015

Publication Date

March 2012

Volume

15

Issue

2

Start / End Page

299 / 304

Related Subject Headings

  • United States
  • Obesity
  • Male
  • Laparoscopy
  • Humans
  • Health Policy & Services
  • Health Care Surveys
  • Health Care Costs
  • Female
  • Costs and Cost Analysis