• Title/Summary/Keyword: indirect costs

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The evaluation of cost-of-illness due to use of cost-of-illness-based chemicals

  • Hong, Jiyeon;Lee, Yongjin;Lee, Geonwoo;Lee, Hanseul;Yang, Jiyeon
    • Environmental Analysis Health and Toxicology
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    • v.30 no.sup
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    • pp.6.1-6.4
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    • 2015
  • Objectives This study is conducted to estimate the cost paid by the public suffering from disease possibly caused by chemical and to examine the effect on public health. Methods Cost-benefit analysis is an important factor in analysis and decision-making and is an important policy decision tool in many countries. Cost-of-illness (COI), a kind of scale-based analysis method, estimates the potential value lost as a result of illness as a monetary unit and calculates the cost in terms of direct, indirect and psychological costs. This study estimates direct medical costs, transportation fees for hospitalization and outpatient treatment, and nursing fees through a number of patients suffering from disease caused by chemicals in order to analyze COI, taking into account the cost of productivity loss as an indirect cost. Results The total yearly cost of the diseases studied in 2012 is calculated as 77 million Korean won (KRW) per person. The direct and indirect costs being 52 million KRW and 23 million KRW, respectively. Within the total cost of illness, mental and behavioral disability costs amounted to 16 million KRW, relevant blood immunological parameters costs were 7.4 million KRW, and disease of the nervous system costs were 6.7 million KRW. Conclusions This study reports on a survey conducted by experts regarding diseases possibly caused by chemicals and estimates the cost for the general public. The results can be used to formulate a basic report for a social-economic evaluation of the permitted use of chemicals and limits of usage.

Dental implant bottom-up cost analysis (치과 임플란트 상향식(bottom-up) 원가산정)

  • Kim, Min-Young;Choi, Ha-Na;Shin, Ho-Sung
    • The Journal of Korean Academy of Prosthodontics
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    • v.52 no.1
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    • pp.18-26
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    • 2014
  • Purpose: The purpose of this study was to estimate the cost of dental implant using the bottom-up approach with the current data from dental clinics. Materials and methods: In this study, direct and indirect costs required for each treatment were calculated using the bottom-up approach. In the bottom-up costing, the average monthly total cost of dental clinic includes labor and material costs, administrative expenses, medical malpractice costs, and opportunity costs of invested capital. For the dental implant cost components, those include direct costs (labor costs, laboratory costs, material costs, depreciation or other operating costs), indirect costs (administrative costs), and the opportunity costs of investment for dental clinic. Results: Dental implant costs of metal crown, porcelain crown and over-denture were 1,449,000 won, 1,583,000 won, and 2,471,000 won respectively. The proportion of cost components was as follows. The labor cost were 50%, and material, administrative and other cost were 33%, 15% and 2%, respectively. For direct, indirect and investment cost, the ratio were 83%, 15% and 2%, respectively. Conclusion: The labor costs were evaluated to comprise largest proportion (about 50%, 730,000 won). Dental implant cost using Bottom-up costing was 1,450,000 won for metal crown and 1,580,000 won for porcelain crown.

Socioeconomic Costs of obesity for Korean Adults (한국인 성인 비만의 사회경제적 비용)

  • Moon, Ok-Ryun;Kim, Nam-Soon;Kang, Jae-Heon;Yoon, Tae-Ho;Lee, Sang-Yi;Lee, Sin-Jae;Jeong, Baek-Geun
    • Journal of Preventive Medicine and Public Health
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    • v.35 no.1
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    • pp.1-12
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    • 2002
  • Objective : To estimate the socioeconomic costs of obesity in Korea,1998. Methods : The 1998 National Health and Nutrition Examination Survey(1998 NHNES) data was used and 10,880 persons who had taken health examinations were selected for study. Essential hypertension, NIDDM(non insulin-dependent diabetes mellitus), dyslipidemia, osteoarthritis, coronary heart disease, stroke were included as obesity related disease. The data of direct costs of obesity was obtained from the National Federation of Medical Insurance. The category of indirect costs was the loss of productivity caused by premature death and admission, time costs, traffic costs, nursing fees due to obesity. Multiple logistic regression model was developed to estimate prevalence odds ratio by obesity class adjusted demographic and socio-ecnomic factors and calculate PAF(Population Attributable Fraction) of obesity on obesity related disease. And we finally calculated the socioeconomic costs of obesity in relation to BMI with PAF. Results : The direct costs of obesity were 2,126 billion${\sim}965$ billion Won in considering out of pocket payment to uninsured services, and the indirect costs of obesity were 2,099 billion${\sim}1,086$ billion Won. Consequently, in considering out of pocket payment to uninsured services, the socioeconomic costs of obesity were 4.225 billion${\sim}2,050$ billion Won, which corresponded to about $0.094%{\sim}0.046%$ of GDP and $1.88%{\sim}0.91$ of total health care costs in Korea. Conclusions : Obesity represents a major health problem with significant economic implications for the society. This results are conservative estimates as far as all obesity related disease and all health care and indirect costs were not included due to missing information. further studies are needed to caculate socioeconomic costs of obesity more exactly.

Application of Activity-Based Costing(ABC) for Modular Building Construction Indirect Costs Calculation at the Manufacturing Stage (활동기준원가계산법(Actvitiy-Based Costing)에 의한 모듈러 건축물 공장제작단계 간접비 산정 방안)

  • Lee, JeongHoon;Park, Moonseo;Lee, Hyun-Soo;Lee, Kwang-Pyo;Hyun, Hosang
    • Korean Journal of Construction Engineering and Management
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    • v.16 no.4
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    • pp.139-145
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    • 2015
  • Modular construction is combined with manufacturing production process and conventional construction industry technique. Considering characteristic of modular construction production process, manufacturing facilities require indirect costs for utilities, equipment, and overall maintenance, which can affect modular units pricing. However, current modular construction cost classification is inadvertent to reflect the manufacturing overhead costs, because it is generally added as a percentage to sum of labor, material and equipment as it called in single cost pool used. This process is easy to estimate the total construction cost at the project starting points, but it brings on misunderstanding of project profit estimations by "cross subsidization phenomenon". To prevent this situation, in this research aims to provide modular construction overhead cost handling process at the detailed indirect cost calculation for manufacturing stage using Activity-Based Costing as one of the powerful method for overhead costs estimation and allocation. Using this research results, modular construction cost estimators have more detailed cost information of modular units and prevent to misallocate indirect costs. Also, it can be utilized to aid the understanding of the company's profit structure.

Estimating the Socioeconomic Costs of Child Poverty (아동 빈곤의 사회경제적 비용 추계)

  • Kim, Soo Jung;Chung, Ick-Joong
    • Korean Journal of Social Welfare
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    • v.69 no.3
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    • pp.9-33
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    • 2017
  • This study estimated the socioeconomic costs of child poverty. Based on previous studies, the present study organized component categories for direct and indirect costs of child poverty, and estimated the cost of each category in 2015 through the collection of existing data and Delphi survey techniques among experts. The total socioeconomic costs of child poverty were compared to Korea's GDP. The results of this study were as follows. First, the socioeconomic costs of child poverty in Korea in 2015 ranged from 55 trillion KW(3.5% of GDP) to 99 trillion KW(6.5% of GDP). Second, the indirect socioeconomic costs of child poverty are much higher than the direct costs. Third, among the total cost categories, costs related to productivity loss and unemployment accounted for the largest portion of both the socioeconomic costs based upon absolute poverty and relative poverty. Crime costs are the second largest. Based on these results, we discussed the importance of early intervention for children in poverty; implementation of two-generation program that intervenes simultaneously with parents and children; and long-term, continuous and integrated intervention for high-risk groups such as poor children.

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Ratio Estimation of Indirect Cost Sector about Defense Companies by Statistic Technique (통계 기법에 의한 방산업체의 간접원가부문 비율 추정)

  • Lim, Hyeoncheol;Kim, Suhwan
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.40 no.4
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    • pp.246-252
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    • 2017
  • In the defense acquisition, a company's goal is to maximize profits, and the government's goal is to allocate budgets efficiently. Each year, the government estimates the ratio of indirect cost sector to defense companies, and estimates the ratio to be applied when calculating cost of the defense articles next year. The defense industry environment is changing rapidly, due to the increasing trend of defense acquisition budgets, the advancement of weapon systems, the effects of the 4th industrial revolution, and so on. As a result, the cost structure of defense companies is being diversifying. The purpose of this study is to find an alternative that can enhance the rationality of the current methodology for estimating the ratio of indirect cost sector of defense companies. To do this, we conducted data analysis using the R language on the cost data of defense companies over the past six years in the Defense Integrated Cost System. First, cluster analysis was conducted on the cost characteristics of defense companies. Then, we conducted a regression analysis of the relationship between direct and indirect costs for each cluster to see how much it reflects the cost structure of defense companies in direct labor cost-based indirect cost rate estimates. Lastly a new ratio prediction model based on regularized regression analysis was developed, applied to each cluster, and analyzed to compare performance with existing prediction models. According to the results of the study, it is necessary to estimate the indirect cost ratio based on the cost character group of defense companies, and the direct labor cost based indirect cost ratio estimation partially reflects the cost structure of defense companies. In addition, the current indirect cost ratio prediction method has a larger error than the new model.

Socioeconomic Costs of Stroke in Korea: Estimated from the Korea National Health Insurance Claims Database (건강보험 청구자료를 이용한 우리나라 뇌졸증 환자의 사회경제적 비용 추계)

  • Lim, Seung-Ji;Kim, Han-Joong;Nam, Chung-Mo;Chang, Hoo-Sun;Jang, Young-Hwa;Kim, Se-Ra;Kang, Hye-Young
    • Journal of Preventive Medicine and Public Health
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    • v.42 no.4
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    • pp.251-260
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    • 2009
  • Objectives : To estimate the annual socioeconomic costs of stroke in Korea in 2005 from a societal perspective. Methods : We identified those 20 years or older who had at least one national health insurance (NHI) claims record with a primary or a secondary diagnosis of stroke (ICD-10 codes: I60-I69, G45) in 2005. Direct medical costs of the stroke were measured from the NHI claims records. Direct non-medical costs were estimated as transportation costs incurred when visiting the hospitals. Indirect costs were defined as patients and caregivers productivity loss associated with office visits or hospitalization. Also, the costs of productivity loss due to premature death from stroke were calculated. Results : A total of 882,143 stroke patients were identified with prevalence for treatment of stroke at 2.44%. The total cost for the treatment of stroke in the nation was estimated to be 3,737 billion Korean won (KRW) which included direct costs at 1,130 billion KRW and indirect costs at 2,606 billion KRW. The per-capita cost of stroke was 3 million KRW for men and 2 million KRW for women. The total national spending for hemorrhagic and ischemic stroke was 1,323 billion KRW and 1,553 billion KRW, respectively, which together consisted of 77.0% of the total cost for stroke. Costs per patient for hemorrhagic and ischemic stroke were estimated at 6 million KRW and 2 million KRW, respectively. Conclusions : Stroke is a leading public health problem in Korea in terms of the economic burden. The indirect costs were identified as the largest component of the overall cost.

Optimum Life-Cycle Cost-Effective Seismic Design for Continuous PSC Bridges Considering Lifetime Expected Seismic Risks (구조 수명간 지진위험도를 고려한 연속 PSC교의 LCC 최적 내진설계)

  • Cho Hyo Nam;Lee Kwang Min;Park Kyung Hoon;Kim Pyung Seok
    • Proceedings of the Korea Concrete Institute Conference
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    • 2004.05a
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    • pp.720-723
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    • 2004
  • This study is intended to propose a systematic approach for determining optimum Life-Cycle Cost (LCC)-effective seismic design for continuous PSC bridges considering lifetime expected seismic risks. In the paper, a set of cost function for LCC analysis of bridges is proposed. The total LCC functions consist of initial cost and direct/indirect damage costs considering repair/replacement costs, human losses and property damage costs, road user costs, and indirect socio-economic losses. The damage costs are expressed in terms of Park-Ang median global damage indices (Park and Ang, 1985) and lifetime damage probabilities. The proposed approach is applied to model bridges of both moderate seismicity regions like Korea and high seismicity regions like Japan. Since, in case of bridges, a number of parameters may have an influence on optimal target reliability, various sensitivity analyses are performed in this study. It may be expected that the proposed approach can be effectively utilized for the development of cost-effective performance criteria for design and upgrading of various types of bridges as well as continuous PC bridges.

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The Economic Burden of Cancers Attributable to Metabolic Syndrome in Korea

  • Kim, Dongwoo;Yoon, Seok-Jun;Gong, Young-Hoon;Kim, Young Ae;Seo, Hye-Young;Yoon, Jihyun;Kim, A-Rim
    • Journal of Preventive Medicine and Public Health
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    • v.48 no.4
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    • pp.180-187
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    • 2015
  • Objectives: Metabolic syndrome is an important etiologic factor in the development of certain types of cancers. The economic cost of the treatment of cancer has been steadily increasing. We therefore estimated the economic burden of cancers attributable to metabolic syndrome in Korea. Methods: We reviewed metabolic syndrome-related cancers and relative risk and then calculated population attributable fractions. We analyzed insurance claims data for metabolic syndrome-related cancers in 2012 in order to estimate the direct costs associated with these cancers, including hospitalization, outpatient visits, transportation costs, and caregivers' costs as well as indirect costs such as loss of productivity due to cancer treatment and premature death. Results: In 2012, 18 070 patients in Korea had cancers attributable to metabolic syndrome. The economic burden was USD 199.8 million and the direct and indirect costs were USD 124.5 million and USD 75.3 million, respectively. Conclusions: We estimated the economic burden of cancers attributable to metabolic syndrome in Korea and the efforts are necessary to reduce this burden.

Cost-benefit Analysis of Mandatory Prescription in Korea (의약분업의 비용-편익 분석)

  • Kim, Han-Joong;Park, Eun-Cheol;Kang, Hye-Young;Jee, Young-Keon
    • Journal of Preventive Medicine and Public Health
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    • v.33 no.4
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    • pp.484-494
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    • 2000
  • Objective : To evaluate the relative benefits and the costs associated with the introduction of the new pharmaceutical provision called 'Mandatory Prescription System' which separates the role of physicians from that of pharmacists with respect to the prescription and dispensation of from the perspective of consumers (i.e., patients). Methods : The costs of the system were measured by considering both direct and indirect costs. Direct costs included additional payments for ambulatory care and dispensing fees that occurred under the new system. indirect costs consisted of transportation expenses and costs related to time spent for physician consultation, waiting for the prescriptions to be filled, and extra traveling. Benefits identified in this study were the reduction of drug misuse and overuse, and the overall decrease in drug consumption among the Korean population. Sensitivity analysis was peformed for the inclusion of benefits for outpatients of hospitals, price elasticity, and increased fees for established patients. Results : The net benefit was estimated to be about minus 1,862 billion won and the benefit-cost ratio was 0.478. This indicates that the costs of 'Mandatory Prescription' outweigh its benefits, relative to the previous system. The sensitivity analysis results for all the variables considered in this study consistently showed the benefit-cost ratio to be less than 1. Conclusion : The results of this study suggest that implementing Mandatory Prescription System in Korea might be inefficient from the consumer's perspective. The results of this study do not coincide with the results of previous studies, presumably because of the differences in study design and in which items of costs and benefits were considered.

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