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Evaluating the socio-economic benefits of innovation. CANCER: ECONOMIC CONSEQUENCES FOR SA. Tienie Stander Campaigning for Cancer Conference 6 October 2007. ACKNOWLEDGEMENTS. Sponsors: Roche Products Wynand Harmse (B Eng (E&E), M Sc Eng)
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Evaluating the socio-economic benefits of innovation CANCER:ECONOMIC CONSEQUENCES FOR SA Tienie Stander Campaigning for Cancer Conference 6 October 2007
ACKNOWLEDGEMENTS • Sponsors: Roche Products • Wynand Harmse (B Eng (E&E), M Sc Eng) • Rhonda Shaw (B Com (Econometrics), B Com (Hons – Actuarial Mathematics) • National Cancer Registry: N Mqoqi • MRC: Prof. D Bradshaw, Dr. R Norman • UCT: Dr. D Bourne • Stats SA
1. THE PROBLEM • Burden of Cancer trends in SA • Cancer as % of all cause death (2004): 5.65%
BURDEN OF DISEASE • MRC results 2000: 520,883 Bradshaw D., Groenewald P., Laubscher R., Nannan N., Nojilana B., Norman R., Pieterse D., Schneider M. Initial Burden of Disease Estimates for South Africa, 2000. Medical Research Council, Burden of Disease Research Unit. March 2003. • MRC results 2000 revised: 501,044 Email discussions with Rosana Norman, Burden of Disease Research Unit of the South African Medical Research Council. • heXor results 2000: 494,292
2. ROLE OF DOH • Constitution of SA • Assuring access to healthcare • Why invest in health?
3. CONSEQUENCES Emotional Physical Financial Economic Global
3.1 DIRECT COSTS • Private sector • Public sector
PRIVATE SECTOR Cancer consumes 4% of private healthcare funds (R2,112 million)
PRIVATE SECTOR Medicine: R430 mil., Practitioners: R1,200 mil., Hospitals R402 mil.
PUBLIC SECTOR Cancer consumes 2.9% of public healthcare funds (R1,693 million)
PUBLIC SECTOR Regional governments spend 84% of cancer budget (R1,428 mil.)
3.2 INDIRECT COST • Definition: loss of economic productivity due to both premture mortality and morbidity • Human Capital Method: present value of an individuals future earnings • Data: mortality, income and survival
Healthy Life 100% YLD YLL 0% ∆ † E† DISCUSSION
Healthy Life 100% YLD YLL 0% ∆ † E† DISCUSSION
Healthy Life 100% 0% E† DISCUSSION
SUMMARY • Cancer survivors are increasing • Economic costs substantial • Indirect costs are neglected