Pneumonia and influenza, combined, are the sixth leading causes of dea
th in the US. The age-adjusted mortality rate for these diseases incre
ased by 20% between 1979 and 1993, perhaps as a result of the emergenc
e of multi-drug-resistant and penicillin-resistant strains of bacteria
that cause pneumonia. Of the approximately $US23 billion annual cost
of community-acquired pneumonia, pneumococcal pneumonia is currently e
stimated to account for up to $US18 billion. Considering the clinical
and economic consequences of pneumococcal disease, vaccination appears
to be a valuable preventive strategy. However, despite Medicare cover
age and the recommendations of the Advisory Committee on Immunisation
Practices (ACIP), only 28% of elderly and high-risk patients received
the pneumococcal vaccine in 1993. This article reviews the epidemiolog
y and economic factors that determine the cost effectiveness of pneumo
coccal vaccination strategies. The strategies are taken from a review
of 10 published economic analyses of the pneumococcal vaccine. Cost sa
vings and favourable cost-effectiveness ratios are associated with key
factors that increase vaccination programme benefits by maximising av
erted direct medical costs as well as reducing vaccination programme c
osts, such as through public vaccination campaigns.