With increasing chronic disease and disability burden as a result of the ag
ing of populations worldwide, cost estimates of disease and disability are
important in determining: (i) the most cost-effective methods in delivering
healthcare in order to maximise resources; and (ii) health policies and re
source allocation. Cost may be divided into direct, indirect and intangible
costs. Economic evaluations include cost-benefit, cost-effectiveness and c
ost-utility studies. In obtaining data for these studies, a multidisciplina
ry effort is required. Data include epidemiological, healthcare utilisation
and cost data (e.g. based on disease-related groups), outcome measures and
national sickness, unemployment and productivity figures.
Examples of cost-of-illness studies show that chronic diseases constitute a
significant economic burden for societies, in terms of either direct or in
direct costs. Using such data, healthcare policies may be formulated toward
s cost reduction, whether preventive or interventional. Decisions regarding
choice of drug treatments or methods of service delivery may also be based
on such information. Conflicting perspectives from healthcare providers, s
ociety or individual viewpoints may render decisions regarding resource all
ocation based on such estimates controversial.