Cited by 358Health Systems, Economic Evaluations, Quality of LifeEconomic and Environmental ValuationGlobal Health Care Issues

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A Practical Guide for Calculating Indirect Costs of Disease

Koopmanschap, Marc A., Rutten, Frans F.H.·1996·PharmacoEconomics

DOI 10.2165/00019053-199610050-00003

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Abstract

There may be some discussion about whether indirect costs should be taken into account at all in an economic appraisal, but there is certainly considerable debate about the proper way of estimating these costs. This reviews offers a practical guide for quantifying and valuing these indirect costs of disease, both at an aggregated level of general cost of illness studies, and in an economic appraisal of specific healthcare programmes. Two methods of calculating these costs are considered: the traditional human capital approach, and the more recently developed friction cost method. The former method estimates the potential value of lost production as a result of disease, whereas the latter method intends to derive more realistic estimates of indirect costs, taking into account the degree of scarcity of labour in the economy. All necessary steps in the estimation procedure and the data required at various points will be described and discussed in detail.

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The friction cost method for measuring indirect costs of disease
Koopmanschap, M. A., Rutten, F., van Ineveld, B. M., & Roijen, L. H. (1995) · Journal of Health Economics · doi:10.1016/0167-6296(94)00044-5 · Cited by 1,141
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Labor and Health Status in Economic Evaluation of Health Care: The Health and Labor Questionnaire
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Self-citation
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Koopmanschap, M. A., & Rutten, F. (1993) · PharmacoEconomics · doi:10.2165/00019053-199304060-00006 · Cited by 170
Self-citation
The Cost of Diabetes
Gerard, K., Donaldson, C., & Maynard, A. (1989) · Diabetic Medicine · doi:10.1111/j.1464-5491.1989.tb02107.x · Cited by 145
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Koopmanschap, M. A., & Rutten, F. (1994) · Health Economics · doi:10.1002/hec.4730030606 · Cited by 90
Self-citation
Cyclical variation in vacancy durations and vacancy flows
OURS, J. C. V., & Ridder, G. (1991) · European Economic Review · doi:10.1016/0014-2921(91)90010-g · Cited by 41
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Lindgren, B. (1981) · Medical Entomology and Zoology · Cited by 27

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“estimated using the human capital method.(22) Productivity losses due to absenteeism from school were estimated by multiplying the number of days not at school due to illness by the estimated daily cost of a child in high school education.”
Method
Cost-Effectiveness of Psychotherapy for Cluster C Personality Disorders
Soeteman, D. I., Verheul, R., Meerman, A. M. M. A., Ziegler, U. M., Rossum, B. V., Delimon, J., Rijnierse, P., Thunnissen, M. M., Busschbach, J. J. V., & Kim, J. J. (2010) · The Journal of Clinical Psychiatry · doi:10.4088/jcp.09m05228blu · Cited by 26
A contingency management intervention to reduce cannabis use and time to relapse in early psychosis: the CIRCLE RCT
Johnson, S., Rains, L. S., Marwaha, S., Strang, J., Craig, T., Weaver, T. D., McCrone, P., King, M., Fowler, D. G., Pilling, S., et al. (2019) · Health Technology Assessment · doi:10.3310/hta23450 · Cited by 28
Long-term medical costs of postmenopausal breast cancer therapy
Cocquyt, V. F. J., Moeremans, K., Annemans, L., Clarys, P., & Belle, S. V. (2003) · Annals of Oncology · doi:10.1093/annonc/mdg280 · Cited by 25
Cost-effectiveness of interpersonal psychotherapy for elderly primary care patients with major depression
Bosmans, J. E., van Schaik, A., Heymans, M. W., van Marwijk, H., van Hout, H. P. J., & de Bruijne, M. C. (2007) · International Journal of Technology Assessment in Health Care · doi:10.1017/s0266462307070572 · Cited by 25
Cost Collection and Analysis for Health Economic Evaluation
Smith, K. A., & Rudmik, L. R. (2013) · Otolaryngology · doi:10.1177/0194599813487850 · Cited by 24
“A major challenge with the friction method is defining accurate friction period values.(22) Last, when productivity changes are included in the economic evaluation, there is a risk of double-counting costs since patients may include the impact of their lost income or loss of leisure time in their health assessments fo…”
Method
Cost-effectiveness of usual general practitioner care with or without antidepressant medication for patients with minor or mild-major depression
Bosmans, J. E., Hermens, M. L., de Bruijne, M. C., van Hout, H. P. J., Terluin, B., Bouter, L. M., Stalman, W. A. B., & van Tulder, M. W. (2008) · Journal of Affective Disorders · doi:10.1016/j.jad.2008.02.002 · Cited by 24
Cost of rotavirus diarrhea for programmatic evaluation of vaccination in Vietnam
the Rotavirus Economic Study Group, Riewpaiboon, A., Shin, S., Phượng, L. T., Vu, D. T., Nguyen, T. H. A., Alexander, N. D. E., & Dang, D. A. (2016) · BMC Public Health · doi:10.1186/s12889-016-3458-2 · Cited by 23
“, human capital approach versus friction cost method [29]), and reference values (e.”
Background
Production losses associated with premature mortality in 28 European Union countries
Łyszczarz, B. (2019) · Journal of Global Health · doi:10.7189/jogh.09.020418 · Cited by 23
ISSLS Prize Winner: Cost-Effectiveness of Two Forms of Circumferential Lumbar Fusion
Freeman, B. J. C., Steele, N. A., Sach, T., Hegarty, J., & Soegaard, R. (2007) · Spine · doi:10.1097/brs.0b013e31815b75e2 · Cited by 23
Renal Artery Stenosis: Cost-effectiveness of Diagnosis and Treatment
van Helvoort-Postulart, D., Dirksen, C. D., Nelemans, P. J., Kroon, A. A., Kessels, A. G. H., de Leeuw, P. W., Vasbinder, G. B. C., van Engelshoven, J. M. A., & Hunink, M. G. M. (2007) · Radiology · doi:10.1148/radiol.2442060713 · Cited by 23
Economic Evaluation and Transferability of Physical Activity Programmes in Primary Prevention: A Systematic Review
Wolfenstetter, S. B., & Wenig, C. M. (2010) · International Journal of Environmental Research and Public Health · doi:10.3390/ijerph7041622 · Cited by 24
“For the calculation of indirect costs, the humancapital approach is the standard approach in most countries, except for the Netherlands where the friction cost method is proposed [64-66].”
Method
Valuing productivity costs using the friction‐cost approach: Estimating friction‐period estimates by occupational classifications for the UK
Kigozi, J., Jowett, S. M., Lewis, M., Barton, P. M., & Coast, J. (2017) · Health Economics · doi:10.1002/hec.3513 · Cited by 23
Epilepsy at Work: Evaluating the Cost of Epilepsy in the Workplace
Heaney, D. C. (1999) · Epilepsia · doi:10.1111/j.1528-1157.1999.tb00947.x · Cited by 23
Cost of rheumatic disorders in the Netherlands
Marle, M. E. V. D. A., Chorus, A. M. J., Vlieland, T. P. M. V., & van den Hout, W. B. (2012) · Best Practice & Research Clinical Rheumatology · doi:10.1016/j.berh.2012.08.005 · Cited by 22
Quantifying the incidence and cost of acute gastrointestinal illness in Sweden, 2013–2014
Edelstein, M. L., Merk, H., Deogan, C. L., Carnahan, A., & Wallensten, A. (2016) · Epidemiology and Infection · doi:10.1017/s0950268816000467 · Cited by 22
“We valued a day of work, according to the human capital approach [16], as the average yearly Swedish age-specific 2012 income [17] (in”
Method
From trivalent to quadrivalent influenza vaccines: Public health and economic burden for different immunization strategies in Spain
Crépey, P., Redondo, E., Díez‐Domingo, J., de Lejarazu, R. O., Martinón‐Torres, F., de Miguel, Á. G., López-Belmonte, J. L., Alvarez, F. P., Bricout, H., & Solozabal, M. (2020) · PLoS ONE · doi:10.1371/journal.pone.0233526 · Cited by 22
“The friction cost limits productivity losses of long-term absence to a friction period [55], and the labor elasticity adjustment PLOS ONE From trivalent to quadrivalent influenza vaccines: Public health and economic burden”
Background
Work Productivity and Costs Related to Patients with Ankylosing Spondylitis, Rheumatoid Arthritis, and Psoriasis
Kruntoradova, K., Klimeš, J., Šedová, L., Štolfa, J., Doležal, T., & Petříková, A. (2014) · Value in Health Regional Issues · doi:10.1016/j.vhri.2014.07.008 · Cited by 22
“[35,40] V A L U E I N H E A L T H R E G I O N A L I S S U E S 4 C ( 2 0 1 4 ) 1 0 0 – 1 0 6 101”
Method
Burden of Chronic Low Back Pain in the Turkish Population
İçağasıoğlu, A., Yumuşakhuylu, Y., Ketenci, A., Toraman, N. F., Karataş, G. K., Kuru, Ö., Kirazlı, Y., Çapacı, K., Eriman, E., & Haliloğlu, S. (2015) · Türkiye Fiziksel Tıp ve Rehabilitasyon Dergisi · doi:10.5152/tftrd.2015.23921 · Cited by 21
“However, the cost paid to the worker is not calculated in this method (25).”
Method
The burden of disease in patients eligible for mentalization-based treatment (MBT): quality of life and costs
Laurenssen, E. M. P., Eeren, H. V., Kikkert, M., Peen, J., Westra, D., Dekker, J., & Busschbach, J. J. V. (2016) · Health and Quality of Life Outcomes · doi:10.1186/s12955-016-0538-z · Cited by 24
“Wagner and colleagues used the Human Capital Approach (HCA) [51], whereas we used the Friction Cost Method [52].”
Method
Cost-effectiveness of Early Surgery versus Conservative Treatment with Optional Delayed Meniscectomy for Patients over 45 years with non-obstructive meniscal tears (ESCAPE study): protocol of a randomised controlled trial
van de Graaf, V. A., Scholtes, V. A., Wolterbeek, N., Noorduyn, J. C. A., Neeter, C., van Tulder, M. W., Saris, D. B. F., de Gast, A., & Poolman, R. W. (2016) · BMJ Open · doi:10.1136/bmjopen-2016-014381 · Cited by 21
Productivity losses in patients with newly diagnosed multiple myeloma following stem cell transplantation and the impact of maintenance therapy
Jackson, G. H., Galinsky, J., Alderson, D., D’Souza, V., Buchanan, V., Dhanasiri, S., & Walker, S. (2019) · European Journal Of Haematology · doi:10.1111/ejh.13298 · Cited by 21
Indirect costs account for half of the total costs of an osteoporotic fracture: a prospective evaluation
Eekman, D. A., ter Wee, M. M., Coupé, V. M. H., Erisek-Demirtas, S., Kramer, M. H. H., & Lems, W. F. (2013) · Osteoporosis International · doi:10.1007/s00198-013-2505-4 · Cited by 21
Gastro esophageal reflux disease is associated with absence from work: Results from a prospective cohort study
Leodolter, A. (2005) · World Journal of Gastroenterology · doi:10.3748/wjg.v11.i45.7148 · Cited by 21
The Migraine ACE Model: Evaluating the Impact on Time Lost and Medical Resource Use
Jaime, J., Caro, G., Getsios, D., Raggio, G., Burrows, M. T., & Black, L. K. (2000) · Headache The Journal of Head and Face Pain · doi:10.1046/j.1526-4610.2000.00042.x · Cited by 21
Early rheumatoid arthritis 6 years after diagnosis is still associated with high direct costs and increasing loss of productivity: the Swedish TIRA project
Hallert, E., Husberg, M., Kalkan, A., Skogh, T., & Bernfort, L. (2013) · Scandinavian Journal of Rheumatology · doi:10.3109/03009742.2013.835442 · Cited by 20
“The human capital method may lead to an overestimation of costs compared to the FC, but has a stronger theoretical underpinning and is the most commonly used method in health economic evaluations (35,36).”
Method
Costs of administering injectable contraceptives through health workers and self-injection: evidence from Burkina Faso, Uganda, and Senegal
Giorgio, L. D., Mvundura, M., Tumusiime, J. K., Namagembe, A., Ba, A., Belemsaga, D. Y., Morozoff, C., Brouwer, E., Ndour, M., & Drake, J. K. (2018) · Contraception · doi:10.1016/j.contraception.2018.05.018 · Cited by 20
“To estimate women’s time costs [26,27], we multiplied the percentage of women working (formally or informally) by the annual country gross domestic product per capita [28] and the total time spent to receive family planning services.”
Background
Cost-minimization analysis of a phase III trial comparing concurrent versus sequential radiochemotherapy for locally advanced non-small-cell lung cancer (GFPC-GLOT 95–01)
Vergnenégre, A., Combescure, C., Fournel, P., Bayle, S., Gimenez, C., Souquet, P. J., Léna, H., Pérol, M., & Delhoume, J. Y. (2006) · Annals of Oncology · doi:10.1093/annonc/mdl100 · Cited by 20
Sumatriptan: Economic Evidence for Its Use in the Treatment of Migraine, the Canadian Comparative Economic Analysis
Caro, G., Getsios, D., Jaime, J., Raggio, G., Burrows, M. T., & Black, L. K. (2001) · Cephalalgia · doi:10.1046/j.1468-2982.2001.00130.x · Cited by 20
Cost utility analysis of HIV pre exposure prophylaxis among men who have sex with men in Israel
Ginsberg, G. M., & Chemtob, D. (2020) · BMC Public Health · doi:10.1186/s12889-020-8334-4 · Cited by 19
The health and economic benefits of reducing intimate partner violence: an Australian example
Cadilhac, D. A.-M., Sheppard, L., Cumming, T. B., Thayabaranathan, T., Pearce, D. C., Carter, R., & Magnus, A. (2015) · BMC Public Health · doi:10.1186/s12889-015-1931-y · Cited by 19
“debate in the economic literature about which method is preferable [32, 33] since they give such divergent results”
Background
Les composantes du coût des stratégies de prise en charge du cancer du poumon en France
Vergnenégre, A., Molinier, L., Combescure, C., Daurès, J., HOUSSET, B., & CHOUAID, C. (2004) · Revue des Maladies Respiratoires · doi:10.1016/s0761-8425(04)71354-6 · Cited by 19
Review of economic analyses of treatment for non-small–cell lung cancer (NSCLC)
Vergnenégre, A., & CHOUAID, C. (2018) · Expert Review of Pharmacoeconomics & Outcomes Research · doi:10.1080/14737167.2018.1485099 · Cited by 18
The Economic Gains of Achieving Reduced Alcohol Consumption Targets for Australia
Magnus, A., Cadilhac, D. A.-M., Sheppard, L., Cumming, T. B., Pearce, D. C., & Carter, R. (2012) · American Journal of Public Health · doi:10.2105/ajph.2011.300453 · Cited by 18
The economic evaluation of a Participatory Ergonomics programme to prevent low back and neck pain
Driessen, M. T., Bosmans, J. E., Proper, K. I., Anema, J. R., Bongers, P. M., & van der Beek, A. J. (2012) · Work · doi:10.3233/wor-2012-0458-2315 · Cited by 21
“Comparing our results on the costs of PE with those of other RCTs is hampered since these studies did not conduct an economic evaluation [12,20].”
Result

Authors: Koopmanschap, M. A., & Rutten, F. F. H.
Affiliations: Erasmus University Rotterdam (NL)
Corresponding author: Koopmanschap, Marc A.
Venue: PharmacoEconomics
Publisher: Springer Science and Business Media LLC
Published: 1996-11
Volume: 10
Issue: 5
Pages: 460-466
ISSN: 1170-7690 (ISSN-L)
DOI: 10.2165/00019053-199610050-00003
OpenAlex: W1980604588
Cited by: 358
References: 9
Citations by year: 2026: 7 · 2025: 5 · 2024: 8 · 2023: 2 · 2022: 17 · 2021: 9 · 2020: 8 · 2019: 10 · 2018: 10 · 2017: 19 · 2016: 11 · 2015: 11 · 2014: 14 · 2013: 12 · 2012: 8
FWCI: 22.73
Type: journal article
Language: en
Open access: closed
Locations: PharmacoEconomics (publishedVersion)
PubMed (publishedVersion)
EUR Research Repository (Erasmus University Rotterdam) (publishedVersion)
EUR Research Repository (Erasmus University Rotterdam) (submittedVersion)
Topics: Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Health Systems, Economic Evaluations, Quality of Life
Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic and Environmental Valuation
Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Global Health Care Issues
Keywords: economic burden, human capital approach, friction cost method, productivity loss, economic evaluation, labor shortage, cost estimation
MeSH terms: Cost-Benefit Analysis, Delivery of Health Care, Humans, Disease Management

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A Practical Guide for Calculating Indirect Costs of Disease

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