Direct and lost productivity costs associated with avoidable hospital admissions

Area of Science:

• Health Economics
• Public Health Policy
• Healthcare Management

Background:

• Ambulatory care sensitive conditions hospitalizations assess primary care performance.
• Avoidable hospitalizations incur direct financial costs, with societal economic burden previously unaddressed.
• This study quantifies the economic impact of avoidable hospital admissions in Portugal.

Purpose of the Study:

• To estimate the direct and lost productivity costs associated with avoidable hospital admissions in Portugal.
• To analyze the components and variations in these costs.
• To provide data for potential healthcare policy interventions.

Main Methods:

• Analysis of Portuguese hospitalizations in 2015.
• Definition and calculation of avoidable hospitalizations, associated costs, and years of potential life lost.
• Estimation of direct costs using official prices and lost productivity costs for absenteeism and premature death.

Main Results:

• Total estimated cost of avoidable hospital admissions reached €250 million (6% of public hospital budget).
• These admissions resulted in 109,641 years of potential life lost.
• Bacterial pneumonia, congestive heart failure, and urinary tract infections comprised 77% of total costs, with direct hospitalization costs accounting for 84%.

Conclusions:

• Age distribution significantly impacts cost components, with older patients (≥65 years) dominating admissions but not contributing to lost productivity costs.
• Avoidable hospital admissions represent a substantial direct economic impact and a considerable societal burden.
• Reducing avoidable hospitalizations offers potential for significant financial savings in Portugal.