BACKGROUND: Little is known about the economic impact of the acid-rela
ted disorders (ARDs), which include dyspepsia, gastritis, gastroesopha
geal reflux disease (GERD), and peptic ulcer disease (PUD), in managed
care patient populations. OBJECTIVES: TO describe the prevalence of m
edically attended ARDs, and their direct medical costs from the perspe
ctive of a large health maintenance organization (HMO). METHODS: A tot
al of 1,550 ARDs subjects (age greater than or equal to 18 years), wer
e randomly sampled from outpatient diagnosis and pharmacy databases of
the Kaiser Permanente Medical Care Program of Northern California and
verified by chart review. Five age-and gender-matched controls were i
dentified per subject. One-year prevalence, excess annual costs, and i
nitial 6-month costs for incident cases were estimated using the HMO c
ost accounting system. RESULTS: Total ARDs prevalence (5.8%) increases
with advancing age. GERD is the most common ARD (2.9% overall prevale
nce). Annual per person attributable costs were $1,183, $471, and $431
respectively for PUD, GERD, and gastritis/dyspepsia. Excess inpatient
costs for PUD explain its higher costs. Outpatient costs were somewha
t higher for GERD ($279) than for PUD or gastritis/dyspepsia. Pharmacy
costs were relatively low for each condition, in part because many pa
tients were treated with generic cimetidine. Total annual HMO expendit
ures for ARDs were $59.4 million, with 40.6%, 36.8%, and 22.6% respect
ively for GERD, PUD, and gastritis/dyspepsia. CONCLUSIONS: Acid-relate
d disorders, particularly GERD and PUD, contribute substantially to th
e direct costs of medical care in this managed care population. (C) 19
97 by Excerpta Medica, Inc.