Cost Effectiveness of MPCs

Treatment at MPCs results in impressive reduction on health care utilization. Simon and colleagues reported a 62% reduction of medical costs as a result of treatment at MPCs. Using the figure of 176,000 patients treated at MPCs annually, the estimated medical cost saving during the first year following treatment at MPCs well over 1.87 billion dollars. The average age of patients treated at MPCs is 45 years and assuming a mean life expectancy of 75, the estimated saving in 30 years would be 45 billion dollars (Flor et al. 1992). As a result of treatment at MPCs there is a significant decline in the proportion of patients receiving disability compensation which translates to savings of billions of dollars.

Systematic comparison of cost-effectiveness across different modalities needs a common index. The index of cost-effectiveness can be defined as:

Cost - effectiveness = improvement x 100 cost of treatment

Using the return to work rate as the improvement score, the cost-effectiveness index score for each treatment modality is shown in Fig. 2.2.

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