Diagnostic and therapeutic approaches to lung cancer in Canada and their costs

Escalating health care costs have made it imperative to evaluate the resources required to diagnose and treat major illnesses in Canadians. For Canadian men, lung cancer is not only the most common malignancy, but also the major cancer killer. As of 1994, lung cancer is expected to overtake breast cancer as the leading cause of cancer deaths in women. This paper presents a detailed description of the methodology used to determine the direct health care costs associated with 'standard' diagnostic and therapeutic approaches for lung cancer in Canada in 1988. Clinical algorithms were developed for each stage of non-small-cell lung cancer (NSCLC) and small-cell lung cancer (SCLC). The algorithms were designed to take the form of decision trees for each clinical stage of lung cancer. The proportion of patients assigned to each branch was based upon questionnaire responses obtained from thoracic surgeons and radiation oncologists when presented with clinical scenarios, and information from provincial cancer registries. Direct care costs were derived primarily from one provincial fee schedule (Ontario), and costing information obtained during the conduct of several Canadian clinical trials in lung cancer. Direct costs for diagnosis and initial treatment of NSCLC (excluding relapse and terminal care costs) ranged from $17,889 for the surgery/post-operative radiotherapy arm of stages I and II to $6,333 for the supportive care arm (stage IV). The cost of determining relapse for NSCLC was estimated to be $1,528, and terminal care costs, which included palliative radiotherapy and hospitalisation, were $10,331. Direct costs for diagnosis and initial treatment of SCLC ranged from $18,691 for limited stage disease to $4,739 for the supportive care arm of extensive disease. The cost of diagnosing relapse for SCLC was estimated to be $1,590, and terminal care costs averaged $9,966. This report provides an estimate of the Canadian costs of managing lung cancer by stage and treatment modality. Because the actual costs of all components of care are not available from any combination of sources, these cost estimates must be viewed as an idealised estimate of the cost of lung cancer management. However, we believe that the lung cancer costing model that we have developed provides a level of sophistication which gives a reasonable estimate of the cost per case of treating NSCLC and SCLC.