cost benefit of investing in health systems · cost benefit of investing in health systems 1...
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Cost benefit of investing in health systems
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Jonathan Rushton, Professor of Animal Health [email protected] Jones and Liz Redmond
2nd July 2015
Acknowledgements
VEEPH Group at RVC: Barbara Haesler, Liz Jackson, Pablo Alarcon, Paula Dominguez‐Salas, Betty Bisdorf, Will Gilbert, Sara Babo Martins, Mieghan Bruce, Richard Kock, Dirk PfeifferLCIRAH – Andrew Dorward, Lili Jia, Colin PoultonRuth Rushton, Jane Dixon, Colin Butler, Robyn Alders, Ian Patrick, Peter Daniels, Mark RweyemamuThank you to the organisers for the invitation to present at the meeting with a special mention for Bernard VallatI want recognise the support of NorbrookPharmaceuticals and LCIRAH in the work I carry out
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Introduction
Historically the presence of disease has generated societal responses such as improved policies for surveillance, control and prevention. The institutionalisation of these responses in many societies has led to a separation between the core investment in health systems and investment in programmes to address specific diseases.
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Introduction
Over the last decades it has been increasingly important to present the economic assessment of specific disease programmes, and more recently to justify the general costs that underpin the overall health system. The OIE has supported this work with the development of the Performance of Veterinary Services (PVS) tool to identify strengths and weakness in core health systems, and the diseases whose control is essential for economic development.
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What is the problem?
Despite the successes of the approach of investing in health systems there are pressures to examine the levels of this investmentIn developed countries there have been major shifts in both the financing and delivery of health systemsIn developing country settings the core investment is weak and always under pressure
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The problem is the weakness in core activities undermines specific disease programmes
Overall there appears to be underinvestment, and defining what it should be is critical to
health and disease management
How to address this problem
I want to begin with looking at why we respond to disease problemsHow decisions are made on the interventions selectedAbility of societies to manage the control of diseaseSuggestions on how this could be improved through a resource allocation lens
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Dead animalsThin animalsAnimals poorly developedLow returnsPoor quality products
VisibleLosses
Fertility problemsChange in herd structureDelay in the sale of animals and productsPublic health costsHigh prices for livestock and livestock products
Losses
InvisibleLosses
Access to better markets denied
MedicinesVaccinesInsecticideTimeTreatment of products
AdditionalCosts
LostRevenue
Health Impact
Expenditure & Reaction
Sub‐optimal use of tecnology
Rushton et al, 1999; Rushton, 2002; Rushton, 2009
Dead animalsThin animalsAnimals poorly developedLow returnsPoor quality products
VisibleLosses
Fertility problemsChange in herd structureDelay in the sale of animals and productsPublic health costsHigh prices for livestock and livestock products
Losses
InvisibleLosses
Health Impact
Access to better markets denied
MedicinesVaccinesInsecticideTimeTreatment of products
AdditionalCosts
Lost Revenue
Expenditure & Reaction
Sub‐optimal use of tecnology
Impactcaused by the
disease
Impact caused by human reaction
Disease Loss – Expenditure Frontier (adapted from McInerney, 1996)
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Disease losses
Control expenditure
No Control
Optimal control
TowardsEradication?
Health systems
A health system is the organisation of people, institutions and resources that deliver healthcare services to meet the needs of target populations
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Health System
US$ 6.5 trillionin 2011 (WHO, 2015)with approximately 9.7 million medical doctors
Human Health Animal Health
Pet & LeisureAnimals
Livestock Wildlife
Animal health medicines market is a fortieth of the human medicines
market (AHI, 2015)We estimate that there are approximately a million vets
Human and animals (LSUs)
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‐
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
19952000
20052010
Millions
Human
Animal
Per person this is equivalent to:• 0.38 livestock units per person• 190 kilos of live animals per person!• 3 chickens, a third of a shoat, a fifth
of a cow, a seventh of a pig and a tenth of a cat or dog
Global livestock units per person by species ‐ (FAOSTAT, 2015; authors’ analysis)
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0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
0.5
1963 1973 1983 1993 2003 2013
Cattle and Buffaloes Equine Camels Pigs Poultry Sheep Goats
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And the consequences?‐ global meat consumption per person 1950 to 2011
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0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.01950
1953
1956
1959
1962
1965
1968
1971
1974
1977
1980
1983
1986
1989
1992
1995
1998
2001
2004
2007
2010
Kg per person pe
r year
Beef Pork Poultry Mutton Farmed Fish Wild Fish
http://www.earth-policy.org/data_center/C24
In 1950 it is estimated that on average 24.4 kilogrammes of meat and fish were
consumed per personIn 2011 this had more than doubled to
62.6 kg
Health system – the weakness
There is strong evidence that many of the human diseases have origins from animals (Cleaveland et al, 2001; Woolhouse & Gowtage‐Sequeria, 2005)And that this trend has increased in the recent past (Jones et al, 2008)Yet our investment across the health system does not seem to reflect either the relationship between the biomass of humans to animals or the risks posed by these biomasses
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Change in technology
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Disease losses
Control expenditure
Disease management with no technology
A shift in technology
Change in technology
Types of technology change• Immune status
Vaccine discovery and vaccine improvements Adjuvant discovery Genetic resistance
• Treatments Antimicrobials
• Methods of detection and delivery Diagnostics Logistics Epidemiology
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And the investments for these technology shifts
Foundations are laid with the education of peopleThere also needs to be research into the specific topicsAnd research requires people and institutions to be developed• These are fixed cost investments of core activities
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Technology shift in health systems
The classic way of thinking about technology shifts is through the lens of technological advanceThere is a tendency to forget that many of our advances have come about through managerial and institutional development changeAnd this requires fixed cost investments in health systems across the speciesInvestments that need public funding support alongside private sector engagement
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Cost‐benefit model for livestock disease control with fixed costs (adapted from Tisdell, 2009)
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$, €, £, ¥
Fixedcosts
VariableCosts
Benefits
Level of inputs
What is needed to assess the investment in fixed cost for the animal health system
A report on these costs (Civic Consulting for OIE, 2009) indicated that the following issues had an influence on spending• Land area, population and livestock• Economic development• Trade• Local ecology and animal health situation• Existence of a private veterinary sectorIt did not come up with estimates of what the investments should be to get the best animal health status
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0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
1922
1924
1926
1928
1930
1932
1934
1936
1938
1940
1942
1944
1946
1948
1950
1952
1954
1956
1958
1960
1962
1964
1966
FMD cases in UK 1922 to 1966
Issues around the health
Imagine a world without the investments of people who surrounded Jenner and PasteurImagine a world without the investments over time on smallpox, rinderpest, foot‐and‐mouth diseaseThese have been, in human history terms, long term investments leading to significant perpetual gains in health and welfare• In the case of animal disease through income, food supply and maintenance of wealth
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The gap
OIE are working hard to collect and update data on the animal health system – through ongoing databases and the PVSAs technical people we are still some way from identifying what is the optimal investment in the health system due to the difficulties in• What the balance should be between species• What is the impact of diseases not just in humans but across species
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There is simply a lack of data
Food Systems
Environmental impacts
Habitat Destruction
WildlifeDisease
Infectious disease in animals
ProductionLosses
Animal Healthcare Costs
Infectious disease through food‐borne
transmission
Malnutrition throughpoor distribution and availability of macro and micro nutrients
Undernourished Over nourished
Human Deaths
HumanDisease
HealthcareCosts
Human Deaths
HumanDisease
HealthcareCosts
Susceptible Animal Population
People
Surveillance System
Socio-Economic
LivestockSector Wildlife Disease
Develop & AssessVaccines & Diagnostics
ImprovedDiagnostics
ActiveDiseaseSearch
Rational & ProportionateDisease Control Measures
Analysis
Data
Pathogen Banks
DiseaseAgent
Surveillance Network
Key messages
Need for evidence which requires data collection and analysis of:• Species and their production systems• Losses in production and our reaction to the presence of
disease• Weaknesses in technologies and their prices• The weaknesses in the overall health systemPresenting business cases that use economics for strategic investmentsAddressing problems with best scientific practice with monitoring and advocacy on how they work
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Further information
For more information on NEAT please look at• www.neat‐network.eu
For information on the work we are involved in with agriculture and health please look at• http://www.lcirah.ac.uk/home
For courses offered at RVC please look at • http://www.rvc.ac.uk/Postgraduate/Distance/Index.cfm• http://www.atp‐ilhp.org
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References
Animal Health Institute (2015) About Animal Medicines. Accessed at http://www.ahi.org/about‐animal‐medicines/industry‐statistics/ June 2015Civic Consulting (2009) Cost of National Prevention Systems for Animal Diseases and Zoonosesin Developing and Transition Countries. Report for OIE, Paris, France. 381 pages Cleavland, S.; Laurenson, M.K.; Taylor, L.H. (2001) Diseases of humans and their domestic mammals: pathogen characteristics, host range and the risk of emergence Philos Trans R SocLond B Biol Sci. 2001 Jul 29;356(1411):991‐9.Henry J. Kaiser Family Foundation (2015) Global Health Facts. Accessed http://kff.org/global‐indicator/physicians/ June 2015Jones, Patel, N.G.; Levy, M.A.; Storeygard, A.; Balk, D.; Gittleman, J.L.; Daszak P. (2008) Global trends in emerging infectious diseases. Nature 451, 990‐993McInerney J. (1996) Old economics for new problems – Livestock disease: Presidential address. Journal of Agricultural Economics 47 (3) pp 295‐314McInerney, J. P. Howe, K. S. Schepers, J.A. (1992) A framework for the economic analysis of disease in farm livestock. Preventive Veterinary Medicine.13: 2, 137‐154.Rushton, J. (2009) The Economics of Animal Health and Production. CABI, UK 364 pages WHO (2015) Spending on health care a global overview. Accessed athttp://www.who.int/mediacentre/factsheets/fs319/en/ June 2015Woolhouse, M.E.J.; Gowtage‐Sequeria, S. (2005) Host Range and Emerging and Reemerging Pathogens. Emerging Infectious Diseases Vol. 11, No. 12
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