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Principles involved in costing.

D B Evans1

  • 1Centre for Clinical Epidemiology and Biostatistics, Faculty of Medicine, University of Newcastle, Shortland, NSW.

The Medical Journal of Australia
|August 6, 1990
PubMed
Summary
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This study outlines key principles for costing medical interventions, using stroke in Australia as a case study. It emphasizes economic evaluation methods for healthcare resource allocation.

Area of Science:

  • Health Economics
  • Medical Intervention Costing

Background:

  • Understanding the economic burden of diseases like stroke is crucial for healthcare policy.
  • Previous work established cost-effectiveness analysis frameworks.

Purpose of the Study:

  • To introduce fundamental principles of economic evaluation for medical interventions.
  • To illustrate these principles using the economic costs of stroke in Australia.

Main Methods:

  • Defining the analytical viewpoint (e.g., societal, healthcare payer).
  • Differentiating between marginal and average costs.
  • Explaining the application of discounting for future costs.

Main Results:

  • Clarification of financial vs. economic costs.

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  • Distinction between capital, recurrent, and overhead costs.
  • Explanation of transfer payments in economic analysis.

    • Conclusions:

    • Accurate costing is essential for robust economic evaluations of healthcare interventions.
    • Adherence to defined principles ensures comprehensive and valid cost analysis.
    • This paper complements cost-effectiveness analysis by detailing costing methodologies.