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Appendix K Cost Issues in Cost Effectiveness Modeling of Colorectal Cancer Screening--Martin L. Brown, Ph.D.
Pages 189-207

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From page 189...
... Appendix K Cost Issues in Cost Effectiveness Modeling of Colorectal Cancer Screening Martin L Brown, Ph.D.
From page 190...
... 190 ECONOMIC MODELS OF COLORECTAL CANCER SCREENING SLIDE 2 SLIDE 2 NOTES: No notes.
From page 191...
... Productivity costs may be relevant in populations where individuals must take time away from work to get screened. Most models have ignored these two dimensions and focused on the direct medical care costs.
From page 192...
... The latter approach acknowledges the high initial and terminal costs of treating colorectal costs, while the continuing care components recognizes that costs of treating and monitoring colorectal cancer continue over the course of a person's life following the initial treatment period.increased by about 2 years in a cohort of 50-year-old individuals. That 2-year difference leads to substantially lower life-expectancies in our model.
From page 193...
... (The Medicare fee structure, for example, was constructed with such amortized costs in mind.) But, when the fixed costs are incurred up front, in a short period of time, they may become financial constraints that health care providers or plans must take into account.
From page 194...
... For example, a cost-benefit analysis of the Mammography Quality Standards Act estimated that quality control and program evaluation costs for that technology were on the order of $2 or $3 per examination, compared with total costs of $50 to $100 per examination. As colorectal cancer screening evolves in the US, explicit quality control programs will undoubtedly be required.
From page 195...
... SLIDE 7 SLIDE 7 NOTES: Here are some of the obvious sources of variation in estimated costs across the CEA studies we are examining in this workshop. One very important issue is whether the study includes a charge for the additional unrelated future health care costs that would be incurred simply as a result of screened patients living longer.
From page 196...
... The screening cost accounts for a large proportion of the entire lifetime cost. A difference in costs by a factor of four or five would obviously affect the conclusions of an analysis.
From page 197...
... APPENDIX K 197 SLIDE 9 SLIDE 9 NOTES: No notes.
From page 198...
... . Note that the time cost as estimated in the trial is not a trivial proportion of the entire unit cost of screening.
From page 199...
... Many studies assume that Medicare's allowed amount is the cost for FOBT. However, if one must visit a primary care physician to receive and be instructed in the proper application of the test, the cost would be an additional $40.
From page 200...
... In a 2000 survey of primary care physicians who do flexible sigmoidoscopy (NOT gastroenterologists) , we found that less than one-third said they would actually take a biopsy as part of the screening procedure.
From page 201...
... In most cases, we hope, it would be later in time, and when costs are discounted to their present value, there would be some net savings even if the absolute costs did not decline. In addition, during the extra years of life that a person lives, he or she would obtain medical care, which would also decrease the net savings from prevention of CRC.
From page 202...
... That is because individuals diagnosed in stage 4 tend to die quickly, and all the usual health care expenses are avoided. I do not know what effect such different cost assumptions would have on the outcomes of CEAs, as it would depend upon the distribution of incidence across the stages of disease and the impact of a screening strategy on each particular stage.
From page 203...
... A related question in this regard is whether the assumptions regarding surveillance should reflect a `best practices" or guidelines-based surveillance regimen, or a surveillance regimen that reflects actual practice.
From page 204...
... Total program costs almost doubled between current guidelines for surveillance and a uniform onceevery-three-years surveillance practice.
From page 205...
... APPENDIX K 205 SLIDE 17 SLIDE 17 NOTES: No notes.
From page 206...
... For example, assuming that flexible sigmoidoscopy screening would be carried out mainly by primary care physicians, the cost implications would be different from those under a sigmoidoscopy screening program carried out by gastroenterologists, or by screening endoscopy mills, a term I use in a positive sense, because of their potential to deliver endoscopic services efficiently. Today, we have almost no information on the relative costs of delivering screening services in those different organizational environments.
From page 207...
... 2003. Report to the Agency for Health Care Research and Quality: A Comparison of the Cost-Effectiveness of Fecal Occult Blood Tests with Different Test Characteristics in the Context of Annual Screening in the Medicare Population.


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