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Getting Bang for the Buck in Health:
 The best buys in changing health
       status in South Africa

                  Karen Hofman
University of Witwatersrand School of Public Health
MRC Wits Rural Public Health and Health Transitions
                  Research Unit

       Investing in Health Promotion Indaba
         Johannesburg, November 9 2011
                                                      1
Summary
• SA is not getting a good bang for its buck
• Best buys are one factor BUT critical for
  setting priorities
• The burden of NCDs is rising
• Prevention of NCDs makes cents
• Devote more resources to get SA specific
  data to motivate decision makers to act


                                           2
South African govt is spending a lot of
          money on health…
                   120




                   100




                   80
Billions of Rand




                   60                                                                               2009/10
                                                                                                    2010/11
                   40
                                                                                                    2011/12

                   20




                    0
                         Housing   Water supply School nutrition Welfare services Health services


                                                                                                         3
… but it is not getting good value for
                      money
350

300

250

200                                                               Mexico
                                                                  Brazil
150
                                                                  South Africa
100                                                               Russia

 50                                                               Thailand


  0
       Public exp/cap US$ PPP   LE at birth   Under 5 mortality

                                                                                 4
Summary
• SA is not getting a good bang for its buck
• Best buys are one factor BUT critical for
  setting priorities
• The burden of NCDs is rising
• Prevention of NCDs makes cents
• Devote more resources to get SA specific
  data to motivate decision makers to act


                                           5
A best buy is an intervention with compelling
evidence for C/E that is feasible, low cost and
    appropriate to implement within local
                  constraints

Measuring Cost Effectiveness
Life years gained / magnitude of disease prevented per $
   spent --- lower is better

Magnitude of disease
Disability adjusted life year - DALY
Death and disability expressed in a single measure

                                                           6
DALYs more accurately measure
         the burden of disease
                   MORTALITY                                  DALYs
Rank                              %     Rank                           %
1      HIV/AIDS                  25.5   1      HIV/AIDS               30.9
2      Ischaemic Heart Disease   6.6    2      Violence/injury        6.5
3      Stroke                    6.5    3      Tuberculosis           3.7
4      Tuberculosis              5.5    4      Road Traffic Injury     3
5       Violence/ injury         5.3
                                        5      Diarrheal Diseases     2.9
       Lower respiratory tract
                                               Lower respiratory
6      infections                4.4
                                        6      infections             2.8
7      Hypertensive disease      3.2
                                        7      Low birth weight       2.6
8      Diarrheal Diseases        3.1
                                        8      Asthma                 2.2
9      Road Traffic Injury       3.1
                                        9      Stroke                 2.2
10     Diabetes Mellitus         2.6    10     Depression              2
                                                                             7
Best buys are one factor BUT critical
              for setting priorities
    Policy Considerations
•   Biomedical                                                                Cost-effective
                                                              Neglected




                                        Cost-effectiveness
    need/burden of           High
                                                             Opportunities
                                                                              interventions
    disease                                                                    used widely
•   Health equity and
    social justice
                                                             Interventions
•   Political, ethical,                                         for which     Interventions
    cultural factors           Low                            scaling up is   to scale back
•   Health system capacity                                     inefficient
•   Financial risk                                                 Current Coverage
    protection
                                                                Low                     High
•   Cost-effectiveness

                                                                                               8
                             Source: Disease Control Priorities in Developing Countries, 2nd ed, 2006
Best buys vary by region…

                 Interventions to reduce traffic injuries
           180
                                                                                                Increased penalties for
           160                                                                                  speeding and other
                                                                                                effective road safety
           140                                                                                  measures, combined
                                                                                                with media coverage and
           120                                                                                  better enforcement
US$/DALY




           100
                                                                                                Speed bumps
            80
            60
            40
            20
            0
                   EAP          ECA           LAC         MENA           SAR              SSA

             Source: Disease Control Priorities in Developing Countries, second edition                           9
We know some SS Africa best buys,
but have limited SA-specific evidence
• Source: DCP -2                       Cost (in US$)     Burden of
Health Intervention                    Per DALY          targeted disease
                                       Averted*          (millions of DALYS)
Childhood Immunization                     $1-5                 14-31
Prevention of traffic crashes              $2-12                  6
Malaria prevention                         $2-24                  35
Surgical services and emergency care      $7-215                25-134
Management of childhood illness           $9-218                10-45
Cardiovascular diseases                   $9-273                  5
HIV/AIDS prevention                       $6-377                  57
Maternal and neonatal care                $82-409               30-38



                                                       Source: DCP -2    10
Summary
• SA is not getting a good bang for its buck
• Best buys are one factor BUT critical for
  setting priorities
• The burden of NCDs is rising
• Prevention of NCDs makes cents
• Devote more resources to get SA specific
  data to motivate decision makers to act


                                           11
An epidemiological transition is underway


• Burden of NCDs is growing AND the population of
HIV positive survivors is expanding

•25% of female school children and 70% adult
women are overweight/ obese many of them poor

• 35% of NCD deaths occur before age of 60 many
without prior diagnosis or treatment
NCDs cause a larger loss of DALYs than
        HIV in South Africa
   Contributions to burden of disease in DALYs in South Africa ,
                              2000


                     NCDs               HIV
                     33%                31%



                                            Injury
                     Comm Dis                14%
                       22%




    Total 16 Million
    33 % NCD/ 31 % HIV                                             13
NCDs are four common diseases with
         common risk factors
Conditions              Origins

• Heart Disease         • Tobacco use
• Cancer                • Unhealthy diet
• Diabetes              • Physical inactivity
• Chronic respiratory
                        • Excessive alcohol use
 diseases
                        •POVERTY
                                                  14
Trends in
Gini Coefficient
shimoni.rosenthal@gmail .com.

        The cost of NCDs in SA is set to
                    escalate
    • Estimated loss 2006 from CVD, Stroke and
      Diabetes combined estimated to cost
          USD $ 0.16 billion ( ZAR 1.28 billion)

    • This cost will rise to 1.8 billion by 2015 if no
      preventive action is taken – equivalent to new
      health infrastructure grant
                     Obegunde at al. WHO – Lancet 2007   16
South Africa is particularly susceptible to the
poverty spiral caused by the chronic diseases
                                 Higher
       Reduced labour        Dependency ratio
           force
                                                                 •  Low
    Chronic                                         Lower         economic
                             Diminished labour       GDP
     Diseases                                                      growth
                               productivity
    Diminished                                      per         • Deeper
     Health                                          capita        poverty &
                                 Increased                         inequality
      Depleted lifetime
                               consumption,
         earnings
                             reduced savings &
                                investment

          May ultimately discourage foreign direct
                  investment in country.


                                                 Adapted from WHO- 2006
                                                                                17
Focusing on health systems is necessary
    but not sufficient for combating NCDs

Challenges of working within       Benefits of working outside
   the healthcare system             the healthcare system


1. HIV/AIDS and maternal       1. Interventions outside of the
   and child health are           health care infrastructure
   priorities within SA           produce the largest health
                                  gains in the shortest
                                  timeframe
2. Strengthening health
   system will continue to     2. Combining multiple
   take time and resources        interventions across sectors
                                  would generate even larger
   (human resources 70%           health gains
   cost)                                                    18
Summary
• SA is not getting a good bang for its buck
• Best buys are one factor BUT critical for
  setting priorities
• The burden of NCDs is rising
• Prevention of NCDs makes cents
• Devote more resources to getting SA
  specific data to motivate decision makers
  to act

                                           19
Prevention-focused best buys are
        highly cost effective for LMICs
                                       Cost per head (2010 ZAR)

Fiscal measures ( e.g. taxes)                  R   0.20

Food advertising regulation                    R   0.90

Food labeling                                  R   2.50

Worksite interventions                         R   4.50

Mass-media campaigns                           R   7.50

School-based interventions                    R 11.10

Physician counseling                          R 11.80

Source: Cecchini et al 2010 - Lancet                              20
Scaling up core population-based interventions in LMICS costs
            80% less than individual interventions
                          WHO 201




                                                           21
Scaling up preventive interventions will cost R24 per
              person /year in LMICs (WHO 2011)
  Population based best buys = R4.00         Core set of individual based best
Tobacco                                       buys in primary care = R20.00
Tax increases; smoke-free indoor           Cancer
workplaces / public places; tobacco         Hepatitis B immunization
warnings ; ad bans                          Screening for cervical cancer -
Alcohol:                                      (visual inspection with acetic acid)
Tax increases on alcohol; restrictions &      and treatment of pre-ca lesions
bans on alcohol marketing; restrictions
on avail retail alcohol                    CVD and diabetes
Diet and physical inactivity               Multi-drug therapy to people with
• Salt     thru mass media campaigns        Heart attack or stroke
   and decrease in processed food           At high risk (> 30%) of a CVD
• Replace trans-fats with                    event in the next 10 years
   polyunsaturated fats                     Aspirin to people with acute MI
• Public awareness programs- diet &
                                                                              22
   physical activity                       WHO 2011
A core prevention package for unhealthy diet
    and physical activity is least expensive

Intervention                   % share of cost
Promote public awareness             49%
Reduce salt intake                   39%
Replace trans fats                   12%


Resource category
Human resources                      18%
Training                              3%
Mass Media                           77%
                                                23
Even though prevention will help, there are
 challenges implementing these solutions

• Morbidity data on NCDs not easily available
• Multi-sectoral work difficult
• Tailor interventions to local context and
  address cultural beliefs
• Community led and owned solutions more
  likely to work


     Therefore, we need SA-specific data        24
Summary
• SA is not getting a good bang for its buck
• Best buys are one factor BUT critical for
  setting priorities
• The burden of NCDs is rising
• Prevention of NCDs makes cents
• Devote more resources to get SA specific
  data to motivate decision makers to act


                                           25
SA specific data has already helped us formulate better
           health policy on strokes -- PRICELESS SA
1    Known
     • Salt consumption in SA and sources of dietary intake
     • 1994 cost data on stroke hospitalization
     • Population BP levels

2    Innovation
     • Validated WHO regional data for deaths
     • Estimated DALYS
     • Performed econ eval
     • Partnered with Govt and Bakers Union
     • Synthesized the info

3    Result
     •7000 new strokes avoided as a result of decr NA ⁺ consumption
     • Costs saved by ↓hospitalizations and ↓ in population BP
                                                                      26
We could follow the same model to
        fight other NCDs

– Best buys in SA for prevention in rural and
  informal urban settings
– Role of incentives in influencing demand or
  supply behaviors
– Financial implications of guidelines that
  target high risk individuals vs. population
  based screening
                                                27
SA Health Promotion Foundation could
   develop and house the requisite
            economic data
1. Fund prevention research to
    – Develop local, innovative cost effective solutions
    – Understand neglected C/E opportunities for scaling up

2. Develop scenarios and implications for prevention health
    policy and resource allocation across sectors

3. Share data with DOH, industry, sectors outside health --
    e.g. human settlements, transport, trade and industry
  Economic data could motivate policy makers and
              industry leaders to act                         28
Thank you--Siyabonga--Dankie
          www.pricelesssa.ac.za
 Mandy Maredza, Mel Bertram, Steve Tollman,
              Karen Hofman




                                              29

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Bestbuys hpf - karen hofman

  • 1. Getting Bang for the Buck in Health: The best buys in changing health status in South Africa Karen Hofman University of Witwatersrand School of Public Health MRC Wits Rural Public Health and Health Transitions Research Unit Investing in Health Promotion Indaba Johannesburg, November 9 2011 1
  • 2. Summary • SA is not getting a good bang for its buck • Best buys are one factor BUT critical for setting priorities • The burden of NCDs is rising • Prevention of NCDs makes cents • Devote more resources to get SA specific data to motivate decision makers to act 2
  • 3. South African govt is spending a lot of money on health… 120 100 80 Billions of Rand 60 2009/10 2010/11 40 2011/12 20 0 Housing Water supply School nutrition Welfare services Health services 3
  • 4. … but it is not getting good value for money 350 300 250 200 Mexico Brazil 150 South Africa 100 Russia 50 Thailand 0 Public exp/cap US$ PPP LE at birth Under 5 mortality 4
  • 5. Summary • SA is not getting a good bang for its buck • Best buys are one factor BUT critical for setting priorities • The burden of NCDs is rising • Prevention of NCDs makes cents • Devote more resources to get SA specific data to motivate decision makers to act 5
  • 6. A best buy is an intervention with compelling evidence for C/E that is feasible, low cost and appropriate to implement within local constraints Measuring Cost Effectiveness Life years gained / magnitude of disease prevented per $ spent --- lower is better Magnitude of disease Disability adjusted life year - DALY Death and disability expressed in a single measure 6
  • 7. DALYs more accurately measure the burden of disease MORTALITY DALYs Rank % Rank % 1 HIV/AIDS 25.5 1 HIV/AIDS 30.9 2 Ischaemic Heart Disease 6.6 2 Violence/injury 6.5 3 Stroke 6.5 3 Tuberculosis 3.7 4 Tuberculosis 5.5 4 Road Traffic Injury 3 5 Violence/ injury 5.3 5 Diarrheal Diseases 2.9 Lower respiratory tract Lower respiratory 6 infections 4.4 6 infections 2.8 7 Hypertensive disease 3.2 7 Low birth weight 2.6 8 Diarrheal Diseases 3.1 8 Asthma 2.2 9 Road Traffic Injury 3.1 9 Stroke 2.2 10 Diabetes Mellitus 2.6 10 Depression 2 7
  • 8. Best buys are one factor BUT critical for setting priorities Policy Considerations • Biomedical Cost-effective Neglected Cost-effectiveness need/burden of High Opportunities interventions disease used widely • Health equity and social justice Interventions • Political, ethical, for which Interventions cultural factors Low scaling up is to scale back • Health system capacity inefficient • Financial risk Current Coverage protection Low High • Cost-effectiveness 8 Source: Disease Control Priorities in Developing Countries, 2nd ed, 2006
  • 9. Best buys vary by region… Interventions to reduce traffic injuries 180 Increased penalties for 160 speeding and other effective road safety 140 measures, combined with media coverage and 120 better enforcement US$/DALY 100 Speed bumps 80 60 40 20 0 EAP ECA LAC MENA SAR SSA Source: Disease Control Priorities in Developing Countries, second edition 9
  • 10. We know some SS Africa best buys, but have limited SA-specific evidence • Source: DCP -2 Cost (in US$) Burden of Health Intervention Per DALY targeted disease Averted* (millions of DALYS) Childhood Immunization $1-5 14-31 Prevention of traffic crashes $2-12 6 Malaria prevention $2-24 35 Surgical services and emergency care $7-215 25-134 Management of childhood illness $9-218 10-45 Cardiovascular diseases $9-273 5 HIV/AIDS prevention $6-377 57 Maternal and neonatal care $82-409 30-38 Source: DCP -2 10
  • 11. Summary • SA is not getting a good bang for its buck • Best buys are one factor BUT critical for setting priorities • The burden of NCDs is rising • Prevention of NCDs makes cents • Devote more resources to get SA specific data to motivate decision makers to act 11
  • 12. An epidemiological transition is underway • Burden of NCDs is growing AND the population of HIV positive survivors is expanding •25% of female school children and 70% adult women are overweight/ obese many of them poor • 35% of NCD deaths occur before age of 60 many without prior diagnosis or treatment
  • 13. NCDs cause a larger loss of DALYs than HIV in South Africa Contributions to burden of disease in DALYs in South Africa , 2000 NCDs HIV 33% 31% Injury Comm Dis 14% 22% Total 16 Million 33 % NCD/ 31 % HIV 13
  • 14. NCDs are four common diseases with common risk factors Conditions Origins • Heart Disease • Tobacco use • Cancer • Unhealthy diet • Diabetes • Physical inactivity • Chronic respiratory • Excessive alcohol use diseases •POVERTY 14
  • 16. shimoni.rosenthal@gmail .com. The cost of NCDs in SA is set to escalate • Estimated loss 2006 from CVD, Stroke and Diabetes combined estimated to cost USD $ 0.16 billion ( ZAR 1.28 billion) • This cost will rise to 1.8 billion by 2015 if no preventive action is taken – equivalent to new health infrastructure grant Obegunde at al. WHO – Lancet 2007 16
  • 17. South Africa is particularly susceptible to the poverty spiral caused by the chronic diseases Higher Reduced labour Dependency ratio force • Low  Chronic Lower economic Diminished labour GDP Diseases growth productivity  Diminished per • Deeper Health capita poverty & Increased inequality Depleted lifetime consumption, earnings reduced savings & investment May ultimately discourage foreign direct investment in country. Adapted from WHO- 2006 17
  • 18. Focusing on health systems is necessary but not sufficient for combating NCDs Challenges of working within Benefits of working outside the healthcare system the healthcare system 1. HIV/AIDS and maternal 1. Interventions outside of the and child health are health care infrastructure priorities within SA produce the largest health gains in the shortest timeframe 2. Strengthening health system will continue to 2. Combining multiple take time and resources interventions across sectors would generate even larger (human resources 70% health gains cost) 18
  • 19. Summary • SA is not getting a good bang for its buck • Best buys are one factor BUT critical for setting priorities • The burden of NCDs is rising • Prevention of NCDs makes cents • Devote more resources to getting SA specific data to motivate decision makers to act 19
  • 20. Prevention-focused best buys are highly cost effective for LMICs Cost per head (2010 ZAR) Fiscal measures ( e.g. taxes) R 0.20 Food advertising regulation R 0.90 Food labeling R 2.50 Worksite interventions R 4.50 Mass-media campaigns R 7.50 School-based interventions R 11.10 Physician counseling R 11.80 Source: Cecchini et al 2010 - Lancet 20
  • 21. Scaling up core population-based interventions in LMICS costs 80% less than individual interventions WHO 201 21
  • 22. Scaling up preventive interventions will cost R24 per person /year in LMICs (WHO 2011) Population based best buys = R4.00 Core set of individual based best Tobacco buys in primary care = R20.00 Tax increases; smoke-free indoor Cancer workplaces / public places; tobacco  Hepatitis B immunization warnings ; ad bans  Screening for cervical cancer - Alcohol: (visual inspection with acetic acid) Tax increases on alcohol; restrictions & and treatment of pre-ca lesions bans on alcohol marketing; restrictions on avail retail alcohol CVD and diabetes Diet and physical inactivity Multi-drug therapy to people with • Salt thru mass media campaigns  Heart attack or stroke and decrease in processed food  At high risk (> 30%) of a CVD • Replace trans-fats with event in the next 10 years polyunsaturated fats  Aspirin to people with acute MI • Public awareness programs- diet & 22 physical activity WHO 2011
  • 23. A core prevention package for unhealthy diet and physical activity is least expensive Intervention % share of cost Promote public awareness 49% Reduce salt intake 39% Replace trans fats 12% Resource category Human resources 18% Training 3% Mass Media 77% 23
  • 24. Even though prevention will help, there are challenges implementing these solutions • Morbidity data on NCDs not easily available • Multi-sectoral work difficult • Tailor interventions to local context and address cultural beliefs • Community led and owned solutions more likely to work Therefore, we need SA-specific data 24
  • 25. Summary • SA is not getting a good bang for its buck • Best buys are one factor BUT critical for setting priorities • The burden of NCDs is rising • Prevention of NCDs makes cents • Devote more resources to get SA specific data to motivate decision makers to act 25
  • 26. SA specific data has already helped us formulate better health policy on strokes -- PRICELESS SA 1 Known • Salt consumption in SA and sources of dietary intake • 1994 cost data on stroke hospitalization • Population BP levels 2 Innovation • Validated WHO regional data for deaths • Estimated DALYS • Performed econ eval • Partnered with Govt and Bakers Union • Synthesized the info 3 Result •7000 new strokes avoided as a result of decr NA ⁺ consumption • Costs saved by ↓hospitalizations and ↓ in population BP 26
  • 27. We could follow the same model to fight other NCDs – Best buys in SA for prevention in rural and informal urban settings – Role of incentives in influencing demand or supply behaviors – Financial implications of guidelines that target high risk individuals vs. population based screening 27
  • 28. SA Health Promotion Foundation could develop and house the requisite economic data 1. Fund prevention research to – Develop local, innovative cost effective solutions – Understand neglected C/E opportunities for scaling up 2. Develop scenarios and implications for prevention health policy and resource allocation across sectors 3. Share data with DOH, industry, sectors outside health -- e.g. human settlements, transport, trade and industry Economic data could motivate policy makers and industry leaders to act 28
  • 29. Thank you--Siyabonga--Dankie www.pricelesssa.ac.za Mandy Maredza, Mel Bertram, Steve Tollman, Karen Hofman 29