The Budget Impact of Establishing a County-Level Cancer Prevention and Care Center in China

Speaker(s)

Huang E1, Gao R2, Hao F3, Dong Y4, Zhao S5, Liu X6, Lyu J7, Yang X8, Liu X9
1National Health Commission of the People's Republic of China, Beijing, Beijing, China, 2The First People's Hospital of Zhangjiagang City, Suzhou, Jiangsu, China, 3The People's Hospital of Zoucheng City, Jining, Shandong, China, 4The People's Hospital of Yuhuan City, Yuhuan, Zhejiang, China, 5The People's Hospital of Taihe County, Fuyang, Anhui, China, 6The People's Hospital of Huanghua City, Cangzhou, Hebei, China, 7Jinan University, Guangzhou, Guangdong, China, 8University of Southern California, Los Angeles, CA, USA, 9University of California, Los Angeles, LOS ANGELES, CA, USA

Presentation Documents

OBJECTIVES: To estimate the economic impact of establishing a county-level cancer prevention and care center in China from a local hospital’s and China Healthcare Security’s (CHS) perspectives.

METHODS: Total healthcare costs and the hospital cost-performance ratio (CPR=net profit/costs) were assessed by a budget impact model over a 3-year course in China. This model compared three strategies for establishing cancer prevention and care center(s) with a 500,000-population county, including status quo (i.e., traveling to major cities for cancer care), building cancer centers by cancer type (covering 80% of cancer types), and establishing a centralized cancer prevention and care center (covering all cancer types in one center). The model considered establishment costs, hospital profit, and cancer-related medical costs, in 2023 Chinese Yuan. Model inputs were obtained from published sources or expert opinions, including cancer incidence/prevalence and percentage of cancer medications/surgeries.

RESULTS: In a Chinese county, compared to the status quo, establishing a centralized cancer prevention and care center resulted in the lowest total health budget (¥130.4 vs 121.2 million [M], ∆ = ¥9.2M) and generated the highest hospital profit (3-year average ∆ = ¥60.1M). Building several cancer centers by cancer types also reduced the total health budget (¥130.4 vs 124.3M, ∆ = ¥6.1M) and increased hospital profit (∆ = ¥38.3M) than the status quo. However, it is less effective than building a centralized cancer center (CPR: 7.7 vs 22.3). These results were primarily attributed to lower cancer medical costs in local counties vs. major cities.

CONCLUSIONS: The establishment of a centralized cancer prevention and care center at the county level provides an effective approach with a decrease in the healthcare budget from CHS’s perspective and an increase in profit from a local hospital’s perspective. These findings have implications for improved cancer care and healthcare resource allocation in China.

Code

EE238

Topic

Economic Evaluation

Topic Subcategory

Budget Impact Analysis

Disease

No Additional Disease & Conditions/Specialized Treatment Areas, Oncology