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Estimates of patient costs related with population morbidity: Can indirect costs affect the results?
Carreras, M.; García-Goñi, Manuel; Ibern, Pere; Coderch, J.; Vall-Llosera, L.; Inoriza, José María
Universitat Pompeu Fabra. Departament d'Economia i Empresa
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 howthe allocation of indirect costs or overheads can affect the estimation of patient costs in order to allow forimprovements in the analysis of patient costs estimates. Instead of focusing on the costing method, thispaper proposes to highlight changes in variance explained observed when a methodology is chosen. Wecompare three overhead allocation methods for a specific Spanish population adjusted using the ClinicalRisk Groups (CRG), and we obtain different series of full-cost group estimates. As a result, there aresignificant 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 dependsmainly on direct costs and is independent of the level of aggregation used in the classification system.
23-03-2009
Labour, Public, Development and Health Economics
patient costs
clinical risk groups
variation explained
overhead allocation
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