Cost structure for Patch
Patch project
TB treatment is outrageously costly, where most people who are diagnosed with TB are unable to afford it and thus creates a ripple effect within the Economy itself. Financial costs are usually borne by the public Health system , an outbreak of either MDR-TB( multi-drug resistant) or XDR-TB( extensively drug resistant) can bankrupt the public health budget of a locality and even a city. Estimates of the total costs of TB treatment vary from state to state but have always been at an extensive high.
In-patient costs averaged US$25 853 per person and $1036 per person-day of hospitalization. Out-patient costs per person ranged from $5744 to $41821 (average $19028, or $44 a day). Direct medical costs averaged $44 881; indirect costs for those who survived averaged $32 964, and indirect costs for those who died averaged $686 381 per person. Total costs per person ranged from $28 217 to $181 492 (average $89 594) for those who survived, and from $509 490 to $1 278 066 (average $717 555) for those who died.
After diagnoses most costs come from hospitalization, accounting for 53% of the costs of TB treatment for an individual.Per patient hospitalization charges were categorized as medication, procedures, laboratory tests, personnel, room and board, supplies, and miscellaneous. We estimated in-patient physician costs from the number of in-patient days, assuming that a physician saw each patient once a day, multiplied by the Medicare-allowable charge for initial hospital care.
According to a study done “estimated out-patient physician costs based on the number of out-patient days (in-patient days subtracted from total TB treatment length). We assumed that after each TB hospitalization, out-patients visited the clinic to see a physician initially every 2 weeks for the first 6 weeks and then once a month until treatment termination. We used the Medicare-allowable physician charge for an established patient.”
Looking at the above study , when it comes to the solution — Patch reduces the amount significantly with in Patient costs from traditional starting point of $34 000 to a Patch costs starting at $3,100, saving $31 000. Not only does it reduce the in-patient costs of HIV treatment but also the costs of out-patient costs — that include medication, monthly physician costs as well as the cost of not being productive , in daily activities and work( which usually is income for daily needs). The reduced costs that come from Patch is due to the fact that with Patch ,patients are still able to conduct most of their daily activities that do not consists of heavy physical activity — most patient are able to proceed with work either online or other minor physical forms of labour. This reduces the out-patient- cost of productivity in income significantly , with $40 000 saved in TB treatment , $238 000 in MDR TB treatment and $233 000 in XDR TB Treatment. Sounds like patch wins this round 1–0.
