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Prevention of unhealthy lifestyles has sometimes been promoted as simultaneously reducing costs and improving public health but this will unlikely
prove to be true. Additional medical costs in life years gained due to treatment of unrelated diseases may offset possible savings in related
Keywords economic evaluation, health policy, medical costs, prevention, public health, value of health
strated to outweigh the savings on related illnesses for the Pieter H.M. van Baal, Senior Researcher
440 # The Author 2009, Published by Oxford University Press on behalf of Faculty of Public Health. All rights reserved.
P R E V E N T I O N A N D VA LU E FO R MO N E Y 441
US guidelines14 and the WHO Guide to Cost-Effectiveness there are no signs that this impact will attenuate in the near
Analysis.15 This results in too favorable estimations of future. These risk factors thus cause illnesses, which in turn
cost-effectiveness of preventive measures prolonging life and do not only reduce public health but also cause health-care
indeed sometimes even in estimated cost savings.16 – 18 consumption, which translates into health-care expenditures.
In order to improve this and create realistic expectations, it Eliminating the risk factors would therefore avoid not
is important to judge preventive lifestyle interventions within only illnesses but also the related care consumption and
the same framework as other health-care interventions. In expenditures. More health, less costs, therefore. The line of
this contribution, we elaborate on this framework, thus shift- reasoning behind this suggestion is temptingly straightfor-
ing the focus from the question whether prevention should ward indeed.
save money towards the proper question of whether preven- Obesity and smoking, however, do not only cause mor-
tion offers value for money. Indeed, preventive interventions bidity but may also reduce life expectancy. Preventive inter-
do not necessarily have to alleviate the financial burden on ventions may thus reduce this risk of premature death
health-care systems in order to be eligible for funding, but caused by such risk factors and subsequently extend life.
rather, like other interventions, have to demonstrate During these life years gained, as a consequence of other,
good value for money.19 Such a relatively favorable cost- unrelated diseases, people may consume additional health
common economic evaluations.26 Economic evaluation, Guidelines on pharmacoeconomic research play an influ-
most commonly performed as a cost-utility analysis when ential role in how economic evaluations are performed, but
evaluating health-care interventions, is a useful way to ident- differ in many aspects across jurisdictions, including regard-
ify the costs and consequences of different policy alterna- ing how to handle unrelated medical costs in life years
tives and compare them accordingly. In other words, gained. Interestingly, both the NICE guidelines and for
economic evaluations demonstrate what value [in cost-utility instance the Dutch guidelines for economic evaluations in
analysis usually expressed as quality adjusted life years fact prescribe ignoring these additional costs of unrelated dis-
(QALYs)] is produced for the money spent. The role of eases in life years gained (without a clear motivation), while
economic evaluation is therefore indispensible in the allo- the US guidelines and the WHO Guide to
cation of scare health-care resources. It would simply be Cost-Effectiveness Analysis leave this decision to the discre-
impossible to set rational priorities when no insight is tion of the analyst. These differences seem to reflect the
gained in the incremental costs and incremental benefits of different positions in the literature, with some authors
a health-care technology if the aim is to optimally improve strongly arguing against inclusion of these costs and others
health with available resources. Moreover, economic evalu- equally strongly advocating the opposite. Regarding the
ation can also be helpful in deciding where in the chain of former position, for instance Russell,29 argued against the
Risk factor Preventive intervention True CE ratio CE ratio (excluding costs unrelated medical care)
Obesity Low calorie diet47 E17 900 or $24 340 E12 100 or $16 460
Intensive lifestyle program48 E7 400 or $10 060 Cost saving
Smoking Tobacco taxes increase49 E2500 or $3400 Cost saving
Minimal counseling by GP (or GP assistant) in combination with E4400 or $5980 E1500 or $2040
nicotine replacement17
Costs discounted at 4% and effects discounted at 1.5%. Dollar price level 2009 (07/01/09: 1 euro ¼ 1.36 dollars).
dawning consensus obviously also requires the availability of an economic evaluation. Moreover, it is worth noting that
sound estimates of additional medical expenditures in ignoring these additional future medical costs, which may,
gained life years. Fortunately, these practical difficulties in occasionally, result in prevention appearing to be cost saving
tions to account for differences in health-care systems and On the other hand, additional societal costs should also be
financing, comparability of results is hampered and similar considered, such as survivor consumption costs, such as
life-prolonging interventions may have different impacts those related to housing, clothing and food.16 How these
across countries in terms of health-care spending. (For different (societal) cost categories will influence the evalu-
example, in The Netherlands two additional definitions are ation of life-prolonging interventions should be investi-
used: the Dutch Health and Social Care Accounts used gated. If a health-care perspective is adopted (like for
by Statistic Netherlands (CBS) and the Budgetary example is currently prescribed in the UK12), such broader
Scheme of Care used by the Dutch Ministry of Health, consequences are usually ignored, as falling outside the
Welfare and Sports. While the first definition is the most scope of the analysis. Note that the issue of how to
complete definition, also including several types of welfare handle unrelated medical costs in life years gained is rel-
costs, the latter is more restrictive.) Comparisons may be evant in both perspectives.
even more difficult when also costs and savings beyond The issue of discounting is also of particular interest for
the health-care sector are considered. In this paper, we the economic evaluation of prevention. Although discount-
have discussed an important controversy regarding the ing of future costs and effects in economic evaluations of
methodology of economic evaluation of health-care inter- health care is widely accepted and standard practice, it
offer (very) good value for money, even when accounting 13 Health Care Insurance Board (CVZ). Guidelines for Pharmacoeconomic
for unrelated medical costs in life years gained, justifying the Research, Actualized Version [in Dutch]. Diemen, The Netherlands:
Health Care Insurance Board, 2006.
claim of the WHO that ‘governments, in their stewardship
14 Gold MR, Siegel JE, Russel LB et al. (eds) Cost-effectiveness in Health
role for better health, need to invest heavily in risk preven-
and Medicine. Oxford: Oxford University Press, 1996.
tion, in order to contribute substantially to future avoidable
15 World Health Organization. Making Choices in Health: WHO Guide to
mortality’.46
Cost-effectiveness Analysis. Geneva: WHO, 2003.
16 Meltzer D. Accounting for future costs in medical cost-effectiveness
Acknowledgements analysis. J Health Econ 1997;16:33 – 64.
17 van Baal PHM, Feenstra TL, Hoogenveen RT et al. Unrelated
We are grateful to Klim McPherson for his useful com- medical care in life years gained and the cost utility of primary pre-
ments on an earlier version of this paper. vention: in search of a ‘perfect cost-utility ratio’. Health Econ
2007;16:421 – 33.
18 Rappange DR, van Baal PHM, van Exel NJA et al. Unrelated
Funding medical costs in life years gained: Should they be included in econ-
The work of David Rappange has been made possible by a omic evaluations of health care interventions? Pharmacoeconomics
12 National Institute for Health and Clinical Excellence (NICE). Guide to 30 Gandjour A. Consumption costs and earnings during added years
the Methods of Technology Appraisal. London: NICE, 2008, online. http:// of life—a reply to Nyman. Health Econ 2006;15:315 – 7.
www.nice.org.uk/media/B52/A7/TAMethodsGuideUpdatedJune2008. 31 Nyman JA. More on survival consumption costs in cost-utility
pdf (18 January 2009, date last accessed). analysis. Health Econ 2006;15:319– 22.
P R E V E N T I O N A N D VA LU E FO R MO N E Y 447
32 Richardson JRJ, Olsen JA. In defence of societal sovereignty: a 42 Stolk EA, van Donselaar G, Brouwer WBF et al. Reconciliation of
comment on Nyman ‘the inclusion of survivor consumption in economic concerns and health policy: illustration of an equity
CUA’. Health Econ 2006;15:311 –3. adjustment procedure using proportional shortfall. Pharmacoeconomics
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Nyman. Health Econ 2008;17:293 – 7. 43 Organization for Economic Cooperation and Development
34 Liljas B, Karlsson GS, Stålhammer N. On future non-medical costs (OECD). A System of Health Accounts, Version 1.0. Paris: OECD,
in economic evaluations. Health Econ 2008;17:579 – 91. 2000.
35 Garber AM, Phelps CE. Economic foundations of cost- 44 Rappange DR, Brouwer WBF, Hoogenveen RT et al. Health care
effectiveness analysis. J Health Econ 1997;16:1 – 31. costs and obesity prevention: Drug costs and other sector-specific
consequences. Pharmacoeconomics, forthcoming.
36 Nyman JA. Should the consumption of survivors be included as a
cost in cost-utility analysis? Health Econ 2004;13:417– 27. 45 Brouwer WBF, Niessen LW, Postman MJ et al. Need for differential
discounting of costs and health effects in cost effectiveness analysis.
37 Gandjour A, Lauterbach KW. Does prevention save costs?
Br Med J 2005;331:446 – 8.
Considering deferral of the expensive last year of life. J Health Econ
2005;24:715– 24. 46 World Health Organization. The Word Health Report 2002; Reducing
Risks, Promoting Healthy Life. Geneva: WHO, 2002.
38 Pharmaceutical Benefits Board (LFN). General Guidelines for
Economic Evaluations from the Pharmaceutical Benefits Board. 2003, 47 van Baal PHM, van den Berg M, Hoogenveen RT et al.