The Value of Investment in Health Care.ppt

The Value of Investment in Health Care Better Care, Better Lives The increase in health spending is a frequent topic of debate… …but the value of this investment is seldom part of the discussion. New evidence finds our nation’s health care dollars are well spent. Overall, each additional health dollar spent produced a return of $2.40-$3.00 in: Deaths avoided Increased longevity Advances in care have improved outcomes and quality of life in common diseases Heart attack Type-2 Diabetes Experienced Research Team MEDTAP International – global health services research firm Bryan R. Luce, Ph.D., M.B.A Founder, Chairman, MEDTAP International Former Director, Office of Research and Demonstrations, US Health Care Financing Administration Frank Sloan, Ph.D. Director, Center for Health Policy, Law and Management, Duke University Josephine Mauskopf, Ph.D. Global Director of Health Economics, RTI Health Solutions Multi-faceted Research Approach Overall value of investment 1980 to 2000 Dollar value of gains in annual population health outcomes versus… …the increase in annual health care expenditures Focus on four common diseases: Heart attack, type 2 diabetes, stroke, and breast cancer Advances in care Improvements in outcomes Overall value of investment for the Medicare population Value of specific medical breakthroughs Conservative Estimates Estimates of value: Value of gain of 1 year of life = $100,000* Value of less disability and increased productivity not in overall estimate Benefits and harms of non-health care changes even out** Overall Value of Investment: Findings Since 1980, per capita expenses are up $2,254, but: Overall death rate is down 16% Life expectancy from birth is up by 3.2 years Disability rates are down 25% for people over 65* 56% fewer days are spent in the hospital Overall Value of Investment: Findings Findings: Four Common Diseases Heart attack Type 2 Diabetes Stroke Breast Cancer Why these four? Common conditions High disability and dea