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Updated: May 7, 2026

One-anastomosis Gastric Bypass (OAGB) in Rats
Published on: November 10, 2018
The business case for bariatric surgery revisited: a non-randomized case-control study
Eric A Finkelstein1, Benjamin T Allaire, Denise Globe
1Health Services and Systems Research, Duke-NUS Graduate Medical School, Singapore, Singapore ; Global Health Institute, Duke University, Durham, North Carolina, United States of America.
Bariatric surgery costs are less favorable than previously reported. Time to recover costs for laparoscopic adjustable gastric band (LAGB) and laparoscopic Roux-en-Y Gastric Bypass (LRYGB) significantly increases when not solely comparing to morbid obesity patients.
Area of Science:
- Bariatric Surgery Outcomes
- Health Economics
- Medical Claims Analysis
Background:
- Previous studies suggested bariatric surgery (LAGB, LRYGB) is cost-saving.
- These studies often used comparison groups with morbid obesity (MO) diagnosis codes.
- This may not accurately reflect patients undergoing these procedures.
Purpose of the Study:
- To re-estimate the net costs and breakeven time for bariatric surgery.
- To use an alternative comparison sample not restricted to MO diagnosis codes.
Main Methods:
- Non-randomized case-control study utilizing US commercial medical claims data.
- Propensity score matching of LAGB and LRYGB patients to two control groups: one with MO codes, one without.
- Analysis of cost recovery and net savings over time.
Main Results:
- When excluding MO diagnosis codes, LAGB breakeven extends to 5.25 years with a 5-year net cost of $690.
- LRYGB breakeven exceeds 10 years with a 5-year net cost of $18,940.
- These findings contrast with prior studies using MO-restricted samples.
Conclusions:
- Bariatric surgery's net costs and breakeven times are likely less favorable than previously reported.
- LRYGB shows a significantly longer breakeven period compared to LAGB.
- Study highlights the impact of comparison group selection on cost-effectiveness analysis.
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