A cost benefit analysis of weight management strategies

Over the past twenty years, obesity has become a major topic of concern. In particular, this paper estimates that the number of obese adults has risen from around 2.0 million in 1992/93 to about 3.1 million in 2005. With the prevalence of obesity on the rise, the associated economic cost is also increasing significantly. The annual cost of obesity in 1992-93 was estimated at around 840 million dollars per year. This paper shows that the annual cost of obesity in Australia could now be as high as 1,721 million dollars. With the cost of obesity rising, the ability to assess and compare alternative programs for reducing the current prevalence of obesity is very important. This involves weighing up the costs and benefits of the different strategies. So, in addition to providing an updated estimate of the potential cost of obesity in Australia, this paper uses a weight management program to illustrate the methodology used in assessing alternative intervention programs. For illustration, the expected benefit per enrollment in a weight loss program was calculated at 690 dollars. The associated cost of the program was 202 dollars per enrollment. It should be noted that the estimate of the cost is more precise than the broad estimate of the average benefit. Nevertheless, the average benefit outweighs the cost by an overwhelming ratio of over three-to-one. So a more detailed analysis is unlikely to overturn the general conclusion that the average benefit clearly outweighs the cost, even if the precise ratio of benefits to costs is likely to change.