MICROECONOMIC SURPLUS OR CONVENIENCE IN HEALTH CARE- APPLIED ECONOMIC THEORY IN HEALTH CARE IN THREE EUROPEAN COUNTRIES

Author(s)

Walzer S1, Nuijten M2, Wiesner C31Market Access & Pricing Strategy UG (h.b.), Weil am Rhein, Germany, 2Ars Accessus Medica, Amsterdam (Jisp), Netherlands, 3F. Hoffmann-La Roche Ltd., Basel, Switzerland

OBJECTIVES: In economic theory economic surplus refers to two related quantities: Consumer surplus (monetary gain obtained by consumers because they are able to purchase a product for a price that is less than the highest price they would be willing to pay) and producer surplus (amount that producers benefit by selling at a market price that is higher than the least they would be willing to sell for). Applying the theory to health care economic surplus could be translated as convenience benefits which could be skimmed by patients, physicians or health care payers. METHODS: Various areas of economic surplus were being screened and three areas in Germany, the Netherlands and the UK were analysed: Caesarean births, emergency room visits (nights or weekends) and response surplus. A targeted literature search was being conducted to identify the costs. The economic surplus (convenience value) was calculated. RESULTS: The economic surplus for non-medical driven Caesarean births was calculated as the difference of a DRG (Diagnosis Related Groups) for a vaginal birth and a Caesarean birth in Germany and was equal to € 828 per case. In the UK emergency visits during nights or weekends were analysed. Standard HRG (Healthcare Resource Group) value for an emergency visit was applied and the theoretical surplus was calculated applying a proxy-add-on taken from the proportionally higher wages during premium times and was ranging between € 94 and € 137 per case for nights shifts and weekends respectively. As an example of response surplus IVF-treatments in the Netherlands were chosen where it can be shown that there might be a patient surplus of up to € 4’096 per saved IVF-treatment. CONCLUSIONS: The application of standard economic theory confirms the availability of surplus skimming in health care and shows that health care systems are indirectly accepting and paying for convenience.

Conference/Value in Health Info

2012-11, ISPOR Europe 2012, Berlin, Germany

Value in Health, Vol. 15, No. 7 (November 2012)

Code

PHP81

Topic

Economic Evaluation

Topic Subcategory

Cost/Cost of Illness/Resource Use Studies

Disease

Multiple Diseases

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