Published in:
01-05-2010 | Original Research Article
Productivity loss resulting from coronary heart disease in Australia
Published in: Applied Health Economics and Health Policy | Issue 3/2010
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Background
Coronary heart disease (CHD) is the largest single cause of death in Australia. It places a heavy financial burden on the country’s health system. To date, no study has systematically assessed CHD-related productivity loss in Australia.
Objective
To quantify CHD-related productivity loss in Australia using both the human capital method and the friction method.
Methods
Mathematical models adjusting for economic activity, unemployment and the elasticity of productivity loss of labour reduction were proposed for the quantification. Where Australian data were unavailable, parameters were estimated using data from studies in European countries. Sensitivity analysis was conducted around uncertain parameters.
Results
The annual potential CHD-related productivity loss was estimated to be Australian dollars ($A)1.79 billion in 2004 using the human capital method. The potential loss was considerably higher than the actual loss, estimated to be $A25.02 million using the friction method.
Conclusions
CHD results in significant productivity loss in Australia. A valid economic evaluation of the full scale of the impact of CHD should consider the potential and actual productivity loss as well as the direct healthcare costs incurred by the disease.