Real-world value of direct-acting antivirals for hepatitis C at Kaiser Permanente Southern California
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Updated: Jul 21, 2026

A Protocol for Analyzing Hepatitis C Virus Replication
Published on: June 26, 2014
Lisa M Nyberg1, Ankita Kaushik, Nathaniel Smith
1Hepatology Research, Kaiser Permanente, 4650 Palm Ave, Bldg 4, 1st Floor, San Diego, CA 92154.
Insights
Direct-acting antivirals (DAAs) for hepatitis C virus (HCV) infection are cost-effective, saving $1 billion and reducing disease over a lifetime. Treatment costs are recouped within 3 years, demonstrating a strong return on investment.
Area of Science:
- Hepatology
- Health Economics
- Pharmacoeconomics
Background:
- Chronic hepatitis C virus (HCV) infection affects millions globally.
- Direct-acting antivirals (DAAs) offer high cure rates but face payer access limitations due to high upfront costs.
- Evaluating the long-term cost-effectiveness of DAAs is crucial for patient access and healthcare system sustainability.
Purpose of the Study:
- To evaluate the lifetime cost-effectiveness of treating chronic hepatitis C virus (HCV) with direct-acting antivirals (DAAs) compared to no treatment.
- To analyze the economic impact and health outcomes from the perspective of Kaiser Permanente Southern California (KPSC).
Main Methods:
- A hybrid decision-tree Markov model was developed to simulate health and economic outcomes.
- The model utilized real-world data from 7255 KPSC patients treated with DAAs (ledipasvir-sofosbuvir or sofosbuvir-velpatasvir) between 2014 and 2019.
- Patient data included demographics, fibrosis stage, treatment response, and costs sourced from KPSC and literature.
Main Results:
- Over a lifetime horizon, DAA treatment led to a significant reduction in advanced liver disease events.
- DAA treatment resulted in total cost savings of $1 billion compared to no treatment for the KPSC cohort.
- Cost savings were realized within 3 years of initiating DAA therapy, indicating a rapid return on investment.
Conclusions:
- Direct-acting antiviral (DAA) treatment for hepatitis C virus (HCV) is a cost-effective strategy with substantial long-term savings.
- DAA therapy significantly reduces HCV-related morbidity and mortality.
- The findings support expanded access to DAAs, projecting an investment return within 3 years.
Objectives:
Direct-acting antivirals (DAAs) for chronic hepatitis C virus (HCV) lead to cure in more than 95% of recipients; however, payers may limit access to these lifesaving drugs due to high initial cost. Here, the cost-effectiveness of treating HCV with DAAs vs no treatment over a lifetime horizon is evaluated from the perspective of Kaiser Permanente Southern California (KPSC).
Study Design:
A hybrid decision-tree Markov model.
Methods:
The model simulated the health and economic outcomes for a real cohort of patients with HCV treated with either ledipasvir-sofosbuvir or sofosbuvir-velpatasvir between November 1, 2014, and October 31, 2019, at KPSC. Patients entered the model at different stages of liver disease and received either active treatment with DAAs or no treatment. Patients who did not achieve sustained virological response experienced disease progression; those who achieved sustained virological response experienced either significantly slower or no disease progression depending on the stage of fibrosis at model start. Demographics, treatment experience, genotype, baseline fibrosis stage, treatment rates, and treatment efficacy were sourced from KPSC real-world data. Costs and utilities were sourced from published literature.
Results:
A total of 7255 patients with a mean age of 59 years were treated during the study period. Over a lifetime horizon, DAAs resulted in significant reduction in advanced liver disease events and a total cost savings of $1 billion compared with no treatment based on a hybrid decision-tree Markov state-transition model. Cost savings were achieved after only 3 years. DAA intervention dominated no treatment on a per-patient and cohort basis.
Conclusions:
DAA treatment at KPSC is predicted to significantly reduce HCV-related morbidity and mortality, providing an anticipated return on investment in drug costs after 3 years of treatment.
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