Productivity costs revisited: Toward a new us policy

John A. Nyman

Research output: Contribution to journalReview articlepeer-review

24 Scopus citations

Abstract

In 1996, the Washington Panel recommended that the productivity costs that are not directly related to obtaining care be captured in the quality-of-life weights used to construct the quality-adjusted life years (QALYs) in American cost-utility analyses. This paper revisits the original justification of the Panel and the critiques that appeared in the literature at the time. It then analyzes how productivity costs would be viewed from a cost-benefit analysis perspective to identify their welfare implications and then translates these implications into what they mean for how to express productivity costs in a cost-utility analysis. Next, three consistency issues are identified: (i) consistency between the welfare implications and the health status questionnaires used to construct the QALYs; (ii) consistency between the productivity costs from morbidity and mortality; and (iii) consistency between the measurement of productivity costs and the societal perspective. Finally, after reviewing the productivity costs policies of other countries, the paper makes a modest proposal for a new US policy.

Original languageEnglish (US)
Pages (from-to)1387-1401
Number of pages15
JournalHealth Economics (United Kingdom)
Volume21
Issue number12
DOIs
StatePublished - Dec 2012

Keywords

  • Washington Panel recommendations
  • cost-utility analysis
  • productivity costs

Fingerprint Dive into the research topics of 'Productivity costs revisited: Toward a new us policy'. Together they form a unique fingerprint.

Cite this