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Do Productivity Costs Matter?

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  • Marieke Krol
  • Jocé Papenburg
  • Marc Koopmanschap
  • Werner Brouwer

Abstract

Background: When guidelines for health economic evaluations prescribe that a societal perspective should be adopted, productivity costs should be included. However, previous research suggests that, in practice, productivity costs are often neglected. This may considerably bias the results of costeffectiveness studies, particularly those regarding treatments targeted at diseases with a high incidence rate in the working population, such as depressive disorders. Objectives: This study aimed to, first, investigate whether economic evaluations of treatments for depressive disorders include productivity costs and, if so, how. Second, to investigate how the inclusion or exclusion of productivity costs affects incremental costs. Methods: A systematic literature review was performed. Included articles were reviewed to determine (i) whether productivity costs had been included and (ii) whether the studies adhered to national health economic guidelines about the inclusion or exclusion of these costs. For those studies that did include productivity costs, we calculated what proportion of total costs were productivity costs. Subsequently, the incremental costs, excluding productivity costs, were calculated and compared with the incremental costs presented in the original article, to analyse the impact of productivity costs on final results. Regression analyses were used to investigate the relationship between the level of productivity costs and the type of depressive disorder, the type of treatment and study characteristics such as time horizon used and productivity cost valuation method. Results: A total of 81 unique economic evaluations of treatments for adults with depressive disorders were identified, 24 of which included productivity costs in the numerator and one in the denominator. Approximately 69% of the economic evaluations ignored productivity costs. Two-thirds of the studies complied with national guidelines regarding the inclusion of productivity costs. For the studies that included productivity costs, these costs reflected an average of 60% of total costs per treatment arm. The inclusion or exclusion of productivity costs substantially affected incremental costs in a number of studies. Regression analyses showed that the level of productivity costs was significantly associated with study characteristics such as average age, the methods of data collection regarding work time lost, the values attached to lost work time, the type of depressive disorder, the type of treatment provided and the level of direct costs. Conclusions: Studies that do not include productivity costs may, in many cases, poorly reflect full societal costs (or savings) of an intervention. Furthermore, when comparing total costs reported in studies that include productivity costs, it should be noted that study characteristics such as the methods used to assess productivity costs may affect their level. Copyright Springer International Publishing AG 2011

Suggested Citation

  • Marieke Krol & Jocé Papenburg & Marc Koopmanschap & Werner Brouwer, 2011. "Do Productivity Costs Matter?," PharmacoEconomics, Springer, vol. 29(7), pages 601-619, July.
  • Handle: RePEc:spr:pharme:v:29:y:2011:i:7:p:601-619
    DOI: 10.2165/11539970-000000000-00000
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    References listed on IDEAS

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    Cited by:

    1. Orhan Bozkurt & Sukru Dokur & Adem Yildirim, 2014. "The Importance of Cost Calculation Method in the Accounting and Management of Turkish Operating Costs. A Research within the Scope of TAS-2," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 4(2), pages 38-46, April.
    2. repec:hur:ijaraf:v:4:y:2014:i:2:p:42-50 is not listed on IDEAS
    3. Alfredo Palacios & Andrea Alcaraz & Agustín Casarini & Federico Rodriguez Cairoli & Natalia Espinola & Dario Balan & Lucas Perelli & Federico Augustovski & Ariel Bardach & Andrés Pichon‐Riviere, 2023. "The health, economic and social burden of smoking in Argentina, and the impact of increasing tobacco taxes in a context of illicit trade," Health Economics, John Wiley & Sons, Ltd., vol. 32(11), pages 2655-2672, November.
    4. Paul Hanly & Rebecca Maguire & Frances Drummond & Linda Sharp, 2019. "Variation in the methodological approach to productivity cost valuation: the case of prostate cancer," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 20(9), pages 1399-1408, December.
    5. Marieke Krol & Elly Stolk & Werner Brouwer, 2014. "Predicting productivity based on EQ-5D: an explorative study," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 15(5), pages 465-475, June.
    6. Mark P. Connolly & Cole Tashjian & Nikolaos Kotsopoulos & Aomesh Bhatt & Maarten J. Postma, 2017. "A comparison of average wages with age-specific wages for assessing indirect productivity losses: analytic simplicity versus analytic precision," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 18(6), pages 697-701, July.
    7. Krol, Marieke & Brouwer, Werner, 2015. "Unpaid work in health economic evaluations," Social Science & Medicine, Elsevier, vol. 144(C), pages 127-137.
    8. Renske Hoefman & Job Exel & Werner Brouwer, 2013. "How to Include Informal Care in Economic Evaluations," PharmacoEconomics, Springer, vol. 31(12), pages 1105-1119, December.
    9. Fei-Li Zhao & Feng Xie & Hao Hu & Shu-Chuen Li, 2013. "Transferability of Indirect Cost of Chronic Disease: A Systematic Review and Meta-Analysis," PharmacoEconomics, Springer, vol. 31(6), pages 501-508, June.
    10. Marieke Krol & Werner Brouwer, 2014. "How to Estimate Productivity Costs in Economic Evaluations," PharmacoEconomics, Springer, vol. 32(4), pages 335-344, April.
    11. Spyros Kolovos & Gerardo A Zavala & Anne Sophie Leijen & Hugo Melgar-Quiñonez & Maurits Tulder, 2020. "Household food insecurity is associated with depressive symptoms: results from a Mexican population-based survey," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 12(2), pages 407-416, April.
    12. Mennini, Francesco Saverio & Gitto, Lara, 2022. "Approaches to Estimating Indirect Costs in Healthcare: Motivations for Choice," MPRA Paper 112129, University Library of Munich, Germany.
    13. Krol, Marieke & Brouwer, Werner B.F. & Severens, Johan L. & Kaper, Janneke & Evers, Silvia M.A.A., 2012. "Productivity cost calculations in health economic evaluations: Correcting for compensation mechanisms and multiplier effects," Social Science & Medicine, Elsevier, vol. 75(11), pages 1981-1988.
    14. Hanly, Paul & Ortega Ortega, Marta & Pearce, Alison & Soerjomataram, Isabelle & Sharp, Linda, 2020. "Advances in the methodological approach to friction period estimation: A European perspective," Social Science & Medicine, Elsevier, vol. 264(C).

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