Womens Health Business Case Report

Presenting Health Issue

Proxy Avoided Cost

Cost per day per person

Average days stay per person

Annual cost per person

Cost per incident

Physical/Medical Health ^ Cost of one medical care hospitalisation

$4,820

Violence/Abuse *

Annual cost of the impact of violence on health, justice and other services

$22,960

Emotional/Mental Health # Cost of one mental health hospitalisation

$875

13.3

$11,638

3.4.2.1 Primary Data Sources The following primary data sources were used to establish the value of these benefit proxies: # Productivity Commission (2022), ‘Report on Government Services ‘Services for Mental Health - Data table’ (Section 13A), Australian Government Productivity Commission, released 1 February 2022. • Productivity Commission identifies cost of inpatient care ranging $874.80 - $1489.02 per inpatient bed day and 13.3 days average length of stay for inpatient mental health treatment (public hospital acute) in NSW. 2019-20 data. • Assume $875 for inpatient bed day cost * KPMG (2016), The cost of violence against women and their children in Australia, KPMG for Commonwealth Department of Social Services, May 2016 • KPMG 2016 identifies Commonwealth, state and territory governments bear 19 per cent of total costs ($21.7 billion x 19% = $4.1 billion) associated with the impact of family and domestic violence on women and children. Costs are attributable to the impact on the broader services system, including the health, justice, and human services sectors. • Assume 50% of costs attributable to states/territories and 28% share for NSW (KPMG 2016 identifies NSW incidence at 28% of national states/territories). • Assume 25,000 annual FDV incidents in NSW (KPMG 2016 cites “NSW’s reported criminal incidents of domestic violence related assault has marginally increased from approximately 26,750 incidents in 2010-11 to 28,940 in 2014-15.”). ^ Productivity Commission (2022), Report on Government Services ‘Public Hospitals - Data Table’ (Section 12A), Australian Government Productivity Commission, released 1 February 2022. Productivity Commission identifies ‘recurrent cost per weighted separation’ of $4820 in NSW in 2019-20. This cost is the average cost of providing care for an admitted patient (overnight stay or same day) adjusted for casemix. Casemix adjustment takes account of variation in the relative complexity of the patient’s clinical condition and of the hospital services provided, but not other influences on length of stay. 3.4.3 Avoided Costs for NSW Government Our analysis has applied the rates for each benefit proxy to total annual presentations of health issues to Women’s Health Centres as follows: Presenting Health Issue Category Proxy Avoided Cost Annual cost per person Total annual presentations to Women’s Health Centres in 2020-21

Physical/Medical Health*

Cost of one medical care hospitalisation Annual cost of the impact of violence on health, justice and other service costs

$4,820 $22,960

34,064 22,502

Violence/Abuse^

Emotional/Mental Health# Cost of one mental health hospitalisation

$11,638

66,083

3.4.3.1 Calculation of Benefits Avoided costs for NSW Government from the Women’s Health Program could range as high as $290 million if a 20% avoidance rate and no discounting of benefits was applied. However, our conservative approach uses a low 5% avoidance rate and a large 50% discount rate to produce the estimate of avoided costs.

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Women’s Health NSW – October 2022