Cost of illness or health related

illnesses
Dr Enas Aborya
 Most economic analysis include:-

1- direct medical costs, these include the cost of

hospital care, medications laboratory tests,…etc.,
2- indirect costs reflect the cost of loss of life,
livelihood, absenteeism from work, because
these are difficult to measure, their incorporation
into economic evaluations remains controversial.
3-Intangible costs reflect the costs of pain, suffering
and other non-financial outcomes of disease.
Data required for cost calculations and their
sources

• The total cost of an intervention, is a function

of the:-
• The quantity and type of inputs used.
• The price of those inputs, and
• The percent use of resources.
 Direct Costs
Direct costs represent the monetary value of
goods and services consumed as a result of
illness, and for which a payment is made.
Some direct costs result from the use of
healthcare services, while other are related to
non-healthcare costs.
 Healthcare Costs

Healthcare costs include hospitalizations,

physician services , nursing home care, home
healthcare, medications, and services of other
healthcare providers. Also included might be
costs for herbal treatments, complementary
and alternative medicine, and traditional
healers. Other related costs include medical
supplies and equipment.
 Non-Healthcare Costs
Non-healthcare costs include those for
transportation to health providers, care-giving
by non-health providers such as family
members provided to sick people.
Ex:smoking
fires caused by smoking, cleaning clothes and air
of smoke, business expenses to hire and train
replacements for sick smokers, and insurance
premiums for fire and accident insurance.
 Indirect Costs
• Morbidity Costs

Morbidity costs are an indirect cost representing the value of

lost productivity by persons who are ill or disabled from
disease. An ill person may be unable to work at their usual
job or perform their usual housekeeping and childcare
activities.
Morbidity costs are estimated by determining what a person
would have been able to earn performing paid labor, and
also by estimating an imputed value for lost household
production services.
Mortality Costs
The value of the lives lost is known as the
mortality cost. One measure of the value of
life is based on assigning a monetary value to
a life.
• Choose a health service and try to determine
it’s direct and indirect cost
THANK YOU