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Economic Burden of Pneumonia in an Employed Population
Howard G. Birnbaum, PhD;
Melissa Morley, MA;
Paul E. Greenberg, MS, MA;
Mary Cifaldi, RPh, MSHA;
Gene L. Colice, MD
Arch Intern Med. 2001;161:2725-2731.
Objective To estimate the overall economic burden of pneumonia from an employer
perspective.
Methods The annual, per capita cost of pneumonia was determined for beneficiaries
of a major employer by analyzing medical, pharmaceutical, and disability claims
data. The incremental costs of 4036 patients with a diagnosis of pneumonia
identified in a health claims database of a national Fortune 100 company were
compared with a 10% random sample of beneficiaries in the employer overall
population.
Results Total annual, per capita, employer costs were approximately 5 times
higher for patients with pneumonia ($11 544) than among typical beneficiaries
in the employer overall population ($2368). The increases in costs were for
all components (eg, medical care, prescription drug, disability, and particularly
for inpatient services). A small proportion (10%) of pneumonia patients (almost
all of whom were hospitalized) accounted for most (59%) of the costs.
Conclusions Patients with pneumonia present an important financial burden to employers.
These patients use more medical care services, particularly inpatient services,
than the average beneficiary in the employer overall population. In addition
to direct health care costs related to medical utilization and the use of
prescription drugs, indirect costs due to disability and absenteeism also
contribute to the high cost of pneumonia to an employer.
From the Analysis Group/Economics, Cambridge, Mass (Dr Birnbaum, Ms
Morley, and Mr Greenberg), and Washington Hospital Center, Washington, DC
(Dr Colice). Ms Cifaldi was at Aventis Pharmaceuticals, Kansas City, Mo, at
the time of this study. Dr Colice has consulted for Aventis Pharmaceuticals.
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