Estimates of patient costs related with population morbidity: Can indirect costs affect the results?
A number of health economics works require patient cost estimates as a basic information input. However the accuracy of cost estimates remains in general unspecified. We propose to investigate how the allocation of indirect costs or overheads can affect the estimation of patient costs in order to allow for improvements in the analysis of patient costs estimates. Instead of focusing on the costing method, this paper proposes to highlight changes in variance explained observed when a methodology is chosen. We compare three overhead allocation methods for a specific Spanish population adjusted using the Clinical Risk Groups (CRG), and we obtain different series of full-cost group estimates. As a result, there are significant gains in the proportion of the variance explained, depending upon the methodology used. Furthermore, we find that the global amount of variation explained by risk adjustment models depends mainly on direct costs and is independent of the level of aggregation used in the classification system.
|Date of creation:||Jan 2009|
|Contact details of provider:|| Web page: http://www.econ.upf.edu/|
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- Andrew Briggs & Taane Clark & Jane Wolstenholme & Philip Clarke, 2003. "Missing.... presumed at random: cost-analysis of incomplete data," Health Economics, John Wiley & Sons, Ltd., vol. 12(5), pages 377-392.
- Manuel García-Goñi & Pere Ibern & José Inoriza, 2009.
"Hybrid risk adjustment for pharmaceutical benefits,"
The European Journal of Health Economics,
Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 10(3), pages 299-308, July.
- Manuel García-Goñi & Pere Ibern & José María Inoriza, 2009. "Hybrid risk adjustment for pharmaceutical benefits," Economics Working Papers 1139, Department of Economics and Business, Universitat Pompeu Fabra.
- Manuel García-Goñi & Pere Ibern & José María Inoriza, 2009. "Hybrid risk adjustment for pharmaceutical benefits," Working Papers, Research Center on Health and Economics 1139, Department of Economics and Business, Universitat Pompeu Fabra.
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