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Sociodemographic and Economic Aspects
Jean-Pierre Michel
Gabriel Gold
François Herrmann
Dina Zekry
Reinhild Mulligan
Panteleimon Giannakopoulos
University Hospitals of Geneva
âDementia is certainly one of the most dramatic medical and economic challenges that our society will face in the coming yearsâ
âSouĂȘtre et al., 1995
Dementia is a superordinant category of illness that includes all conditions causing loss of cognitive abilities in an individual who was previously intellectually normal (or was functioning at a higher level) and that are not accounted for by an acute illness causing delirium (Geldmacher & Whitehouse, 1996). Dementia is a slowly progressive, currently incurable, long-lasting disease (Whitehouse, 1997) that ranks very high in the global burden of diseases. In 1994, the incidence of dementia was the ninth most frequent among all disorders (959,000 cases per year) in the United States, and its prevalence ranked eighth (7,082,000 cases; Murray & Lopez, 1997). In most industrialized countries the prevalence of Alzheimerâs Disease (AD), the most common dementing disorder, varies between 6% and 8% of persons older than 65. In every decade after the sixth, the number of patients suffering from AD approximately doubles (Katchaturian & Radebaugh, 1998), with an estimated 30% of the population older than 85 years of age affected by it (Ritchie & Kildea, 1995). AD and other degenerative dementias have a drastic impact on the lives of patients and on family members who serve as caregivers for these patients (Cayton, 1993; Coon & Edgerly, 1999). Moreover, dementia induces enormous health care costs, which will increase more rapidly in an aging society (Meerding, Bonneux, Polder, Koopmanschap, & van der Maas, 1998). In the United States, the annual direct costs of treating AD were estimated to be $21 billion in 1991 (Ernst & Hay, 1994) and $29.8 billion in 1998 (Menzin, Lang, Friedman, Neumann, & Cummings, 1999). In the Netherlands in 1994, dementia ranked third in total health care costs (5.6% with 7.4% for women and 2.9% for men), first in the 65â84 age group (9.5%), and first in the over 85 age group (22.2%; Meerding et al., 1998). In the early stages of the disease, major costs stem from the loss of patientâs and caregiverâs productivity and from family out-of-pocket expenses (Schumock, 1998). In the advanced stages of the disease, costs are mainly linked to long-term and institutional care (Menzin et al., 1999). Until now, escalating health care costs were for care and not for cure (Meerding et al., 1998) of an increasing number of affected people (Katchaturian & Radebaugh, 1998). The expected impact of new drug developments may result in not only an improvement of the patientâs cognitive functioning and quality of life but also a reduction in the time spent by caregivers, a delay in nursing home placement, and a reduction of indirect costs (Schumock, 1998). But the current goal is to obtain rapidly a 5-year delay in the onset of the disease, which could reduce the number of patients by 50% (Katchaturian & Radebaugh, 1998). For these reasons, the economic evaluation of AD and related dementia will play an increasingly influential role in clinical and resource allocations in the coming years. Physicians and other health care professionals should familiarize themselves with techniques of cost-effectiveness analysis (Neumann, Herrmann, Berenhaum, & Weinstein, 1997), and this is the aim of this chapter.
Dementia Costs: How to Understand Economic Analysis
Pharmacoeconomics is a new area of health economics that emerged in the late 1970s, arising from concerns about the relative effectiveness and costs of different drugs (Bootman, Townsend, & McGhan, 1996; Spilker, 1996). The term pharmacoeconomics may have first been used in 1986 in reference to postmarketing drug research. Pharmacoeconomics dealt first with preventive strategies, such as immunization and screening programs, and later with the treatment of acute illnesses, such as antibodies use in burn patients and antibiotic use for different types of infections (Whitehouse, 1997). Until a few years ago chronic conditions such as dementia suffered from a lack of both theoretical and empirical developments in this field (Whitehouse, 1997). However, the use of âdementia costsâ as key words for Medline research now allows us to identify more than 800 papers published in peer reviewed journals in the last 5 years that are devoted to economic considerations of AD.
Researchers must consider both societal and specific payerâs perspectives. From the societal perspective, all relevant costs are included. From the perspective of the specific payer (e.g., patients, families, insurance companies, municipality, county), various selected costs are included or excluded (Winblad, Hill, Beermann, Post, & Wimo, 1997).
Three main types of analysis can be identified (see Table 1.1).
Table 1.1 Various Types of Cost Analysis Applied to Dementia
Type | Description |
Economic burden | |
Cost of illness (Winblad et al., 1997) | Description of all relevant costs of a particular disease (dementia) to a society. Care strategies are not evaluated. |
Costs of various care strategies | |
Cost description (Drummond, Stoddart, & Torrance, 1987) | Analysis of the costs of one type of treatment/care strategy; no comparison with alternative types of treatment/care strategies. |
Cost analysis | Comparison of the costs of different therapies/care strategies; not taking into account the effects. |
Trade-off analysis between care costs and defined or supposed outcomes |
Cost-minimization analysis (CMA) | Comparative cost analysis of two treatments/care strategies estimated to have the same effects. |
Cost-benefit analysis (CBA) | Analysis of all costs achieved by one treatment/care strategy with good outcome; same monetary unit. |
Cost-effectiveness analysis (CEA) | Analysis of all costs achieved by one treatment/care strategy with good outcome; nonmonetary unit. |
Cost-utility analysis (CUA; Torrance, 1987) | Analysis of all costs of a therapy/care strategy with a single important outcome, such as quality of life. |
Pharmacoeconomics | Could be part of types II and III analysis. |
Cost consequence | Outcomes and costs of a specific treatment are measured together in the same indirect mathematical analysis. |
The economic burden analysis of a disease (i.e., cost of illness) is estimated by counting all relevant costs of a particular disease to a society, without any consideration as to which care strategies are used. This kind of analysis is very complicated and is valuable only for social and health policy discussions (Winblad et al., 1997).
Cost analysis of various care strategies includes cost description and cost analysis. Cost description analysis is an economic analysis of only one type of treatment or care, without making any comparisons with alternative types of treatment or care (Drummond, Stoddart, & Torrance, 1987). Cost analysis compares different therapies/treatments but does not compare the effect of these treatments. A large majority of economic studies of dementia care are of this type, and many have their origin in a local project or program. Home care costs (Dellasega & King, 1996; Rice et al., 1993; SouĂȘtre et al., 1995; Stommel, Collins, & Given, 1994), day care costs or intermediate care alternatives (Knapp, Wilkinson, & Wigglesworth, 1998; Wimo, Ljunggren, & Winblad, 1997; Wimo, Mattson, Krakau, Eriksson, & Nelvig, 1994a, 1994b; Wimo et al., 1997), nursing home costs (Ernst & Hay, 1994; Fries, Mehr, Schneider, Foley, & Burke, 1993; Ljunggren & Brandt, 1996; Rovner, Steele, Shmuley, & Folstein, 1996), and special care units (Holmes, Ory, & Teresi, 1994; Volicer et al., 1994) have been analyzed differently. Four methodological strategies were used: Detailed cost analysis, average costs, longitudinal cost analysis of patientsâ care, and cost comparison with other types of care.
Trade-off analysis between care costs and defined or supposed outcomes include cost-minimization, cost-benefit, cost-effectiveness and cost-utility analyses. Cost-minimization analysis (CMA) compares the costs with a final recommendation of the use of the cheaper, assuming equivalent effects of the two treatments or care strategies. This type of analysis fulfills criteria for complete health economic studies. However, it is currently rarely used and is recommended for future studies. Cost-benefit analyses (CBA) and cost-effectiveness analysis (CEA) correspond respectively to the same monetary and nonmonetary analysis of all costs linked to a therapy/care strategy with an expected precise outcome. CEA shows the relationship between all resources used and the health benefit achieved (i.e., the effects) of one intervention (Neuman et al., 1997, 1999). CEA is a possible solution for evaluating informal care (shadow price method) and for considering the patientâs quality of care (Busschbach, Brouwer, van der Donk, Passchier, & Rutten, 1998). Cost-utility (CUA) analysis considers the cost of a care treatment/strategy, considering one single important outcome, such as the patientâs quality of life (Torrance, 1987). CUA shows the relationship between weights or utility weights (quality-adjusted life years or quality) for particular outcomes and quality of life (Albert et al., 1996). The use of generic scales could allow comparison with other diseases (Winblad et al., 1997).
Pharmacoeconomics, in the strictest sense, could be part of the previous types of analyses. However, pharmacoeconomics also includes cost-consequences analysis, which corresponds to consumer preferences/satisfaction (with an indirect mathematical analysis) of outcome and costs of a specific treatment/health service (Whitehouse, 1997). For example, the cost-effectiveness of the new dementia drugs (acetylcholine esterase inhibitors, AchE I) includes not only the price of the drug but also its ability to stabilize or improve the patientâs and caregiverâs quality of life and reduce caregiving costs (Ernst & Hay, 1994; see Table 1.2). This kind of analysis is complex because it must include data and costs that vary constantly, such as delay of institutionalization, reduction in number of hours of informal caregiving required by the patient, improvement of quality of life for patients and caregivers, and that need to be compared with societal trends and progress (SouĂȘtre et al., ...