Population impact and cost-effectiveness of artificial intelligence-based diabetic retinopathy screening in people living with diabetes in Australia: a cost effectiveness analysis
Open accessAbstract
Background: We aimed to evaluate the cost-effectiveness of an artificial intelligence-(AI) based diabetic retinopathy (DR) screening system in the primary care setting for both non-Indigenous and Indigenous people living with diabetes in Australia. Methods: We performed a cost-effectiveness analysis between January 01, 2022 and August 01, 2023. A decision-analytic Markov model was constructed to simulate DR progression in a population of 1,197,818 non-Indigenous and 65,160 Indigenous Australians living with diabetes aged ≥20 years over 40 years. From a healthcare provider's perspective, we compared current practice to three primary care AI-based screening scenarios-(A) substitution of current manual grading, (B) scaling up to patient acceptance level, and (C) achieving universal screening. Study results were presented as incremental cost-effectiveness ratio (ICER), benefit-cost ratio (BCR), and net monetary benefits (NMB). A Willingness-to-pay (WTP) threshold of AU$50,000 per quality-adjusted life year (QALY) and a discount rate of 3.5% were adopted in this study. Findings: With the status quo, the non-Indigenous diabetic population was projected to develop 96,269 blindness cases, resulting in AU$13,039.6 m spending on DR screening and treatment during 2020-2060. In comparison, all three intervention scenarios were effective and cost-saving. In particular, if a universal screening program was to be implemented (Scenario C), it would prevent 38,347 blindness cases, gain 172,090 QALYs and save AU$595.8 m, leading to a BCR of 3.96 and NMB of AU$9,200 m. Similar findings were also reported in the Indigenous population. With the status quo, 3,396 Indigenous individuals would develop blindness, which would cost the health system AU$796.0 m during 2020-2060. All three intervention scenarios were cost-saving for the Indigenous population. Notably, universal AI-based DR screening (Scenario C) would prevent 1,211 blindness cases and gain 9,800 QALYs in the Indigenous population, leading to a saving of AU$19.2 m with a BCR of 1.62 and NMB of AU$509 m. Interpretation: Our findings suggest that implementing AI-based DR screening in primary care is highly effective and cost-saving in both Indigenous and non-Indigenous populations. Funding: This project received grant funding from the Australian Government: the National Critical Research Infrastructure Initiative, Medical Research Future Fund (MRFAI00035) and the NHMRC Investigator Grant (APP1175405). The contents of the published material are solely the responsibility of the Administering Institution, a participating institution or individual authors and do not reflect the views of the NHMRC. This work was supported by the Global STEM Professorship Scheme (P0046113), the Fundamental Research Funds of the State Key Laboratory of Ophthalmology, Project of Investigation on Health Status of Employees in Financial Industry in Guangzhou, China (Z012014075). The Centre for Eye Research Australia receives Operational Infrastructure Support from the Victorian State Government. W.H. is supported by the Melbourne Research Scholarship established by the University of Melbourne. The funding source had no role in the design and conduct of the study; collection, management, analysis, and interpretation of the data; preparation, review, or approval of the manuscript; and decision to submit the manuscript for publication.
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Using autonomous AI for diabetic retinopathy screening has been shown to be lower cost in other countries.
“using autonomous AI for DR screening has been shown to be lower cost in other countries.13–16”
From Screening for diabetic retinopathy with artificial intelligence in a primary care setting: a comparative cost analysis (2026) · cites this paper as [16]
An initial study in Australia demonstrated net savings for the health system and the potential for improved equity in access to care and health outcomes from AI-based diabetic retinopathy screening.
“Notably, one of the initial studies to evaluate cost-effectiveness of AI-based DR screening in Australia, a country with universal, publicly funded healthcare similar to Canada, demonstrated net savings for the health system and the potential for improved equity in access to care and health outcomes.16”
From Screening for diabetic retinopathy with artificial intelligence in a primary care setting: a comparative cost analysis (2026) · cites this paper as [16]
AI adoption can significantly reduce operational costs in healthcare settings, particularly through decision-support systems in dermatology, dentistry, and ophthalmology, and screening programs in diabetic retinopathy and retinopathy of prematurity in PHC settings.
“Several cost-effectiveness analyses have demonstrated that AI adoption can significantly reduce operational costs in healthcare settings, particularly through decision-support systems in dermatology, dentistry, and ophthalmology [179, 180], as well as screening programs in diabetic retinopathy and retinopathy of prematurity in PHC settings [124, 181].”
From Opportunities, challenges, and requirements for Artificial Intelligence (AI) implementation in Primary Health Care (PHC): a systematic review (2025) · cites this paper as [124]
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- Authors
- Hu, W., Joseph, S., Li, R., Woods, E., Sun, J., Shen, M., Jan, C. L., Zhu, Z., He, M., & Zhang, L.
- Affiliations
- The University of Melbourne (AU)
- Melbourne Sexual Health Centre (AU)
- Second Affiliated Hospital of Nanjing Medical University (CN)
- Hong Kong Polytechnic University (HK)
- The Royal Victorian Eye & Ear Hospital (AU)
- Corresponding author
- Zhu, Zhuoting
- He, Mingguang
- Zhang, Lei
- Venue
- eClinicalMedicine
- Publisher
- Elsevier BV
- Published
- 2024-01
- Volume
- 67
- Pages
- 102387
- ISSN
- 2589-5370 (ISSN-L)
- PMC
- PMC10837545
- OpenAlex
- W4390694777
- Cited by
- 47
- References
- 51
- Citations by year
- 2026: 15 · 2025: 26 · 2024: 6
- FWCI
- 11.97
- Type
- journal article
- Language
- en
- Open access
- gold
- doi.org
- Licence
- Locations
- EClinicalMedicine (publishedVersion, cc-by-nc-nd)
- PubMed Central (publishedVersion, cc-by-nc-nd)
- PubMed (publishedVersion)
- PolyU Institutional Research Archive (Hong Kong Polytechnic University) (submittedVersion, cc-by-nc-nd)
- DOAJ (DOAJ: Directory of Open Access Journals) (submittedVersion, cc-by-sa)
- Minerva Access (University of Melbourne) (submittedVersion, cc-by-nc-nd)
- Funders
- National Health and Medical Research Council (APP1175405, MRFAI000035, 2010072)
- State Government of Victoria
- University of Melbourne
- Topics
- Health Sciences › Medicine › Radiology, Nuclear Medicine and Imaging › Retinal Imaging and Analysis
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Health Systems, Economic Evaluations, Quality of Life
- Health Sciences › Medicine › Ophthalmology › Retinal Diseases and Treatments
- Keywords
- diabetic retinopathy, artificial intelligence screening, cost-effectiveness, blindness prevention, Indigenous Australians, primary care, diabetic retinopathy progression, quality-adjusted life years, universal screening, Australia, net monetary benefit, benefit-cost ratio, willingness-to-pay threshold, diabetes complications
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