Chronic Obstructive Pulmonary Disease (COPD)
Economic Case Statement

Contents Executive Summary Abbreviations and Acronyms Terminology   1 Prevalence of COPD in Australia   2 Costs of COPD in Australia   3 The Burden of Disease   4 Strategies to Reduce the Burden of COPD   5 Conclusions References

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Executive Summary

• COPD is costing the nation an estimated $818 to $898 million annually. This is a conservative estimate because it is based on 1993–94 figures extrapolated to the Year 2001. The addition of hidden costs could increase the estimate to more than $1 billion per year.
   
• Prevalence estimates for COPD may be well in excess of the most recent AIHW figure of 300,000 (1996). Two recent studies indicate that COPD prevalence is in the range of 620,000 to 2.6 million cases.
   
• More accurate prevalence figures can only be obtained by a series of integrated prevalence and costing studies.
   
• The current misdiagnosis, misclassification and masking of the diagnosis of COPD by other comorbid illnesses leads to a major underestimate of the economic burden of COPD.
   
• The enormous burden on carers represents a hidden/additional cost not accounted for in the current cost estimates.
   
• Another hidden indirect cost is that due to the management of complications and co-morbidities associated with COPD.
   
• There are on average, 1,740 people visiting a GP every day for COPD, and 1,000 people occupying a hospital bed. The average length of stay in hospital is 7.2 days, at a basic average cost of approximately $3,700 per admission.
   
• Hospital costs for COPD have increased by almost 50% (CPI adjusted) since 1993-94, and the ageing population will ensure this increase continues.
   
• Economic modelling, purely based on GP and specialist consultations, and using conservative prevalence estimates, shows that there is a considerable ‘unmet’ medical need due to the large number of undiagnosed patients currently not receiving treatment. There is potential for these costs (and others) to increase rapidly as the prevalence increases and the population ages.
   
• A concerted effort is required to improve the application of existing COPD interventions (for which there is evidence of effectiveness) and to develop innovative strategies for reducing the burden of COPD. There is also a pressing need to educate GP’s, allied health professionals and consumers on measures which can be taken to improve the health and economic outcomes for COPD.