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About the model

The economic model of diabetes uses available information on diabetes in the given country to create cost estimates and to see how changing the resource allocation and priorities will affect the overall costs.

How the model works:

To calculate the costs using the model adjust the following parameters
  • Population of the country, state, city that you want to create the model for
  • Enter the overall prevalence of diabetes in that population
  • Enter the percentage of patients diagnosed / receiving treatment from the estimated diabetes population.
  • Enter the percentage of persons in each resource consumption group i.e. low, medium or high. Go in an order e.g. start with the low group, enter the medium group and the high group will be adjusted to the balance number automatically to add up to 100%. If you want to make changes you have to go through the process again.
  • Enter average annual cost for each resource group.
  • To calculate in local currency the exchange rate to the US dollars must be entered (the model makes calculations in US dollars).
     
    After making the above adjustments, press the Calculate button.
    The model will give you the total cost of care for people with diabetes who are being currently treated and give also the cost in the different individual resource groups.
    If you then readjust the percentage of people in the different resource groups and or the cost for each person in the different resource group and recalculate, the model will provide you figures for the changed scenario.
     

    For example:

  • India has a population of 1 billion.
  • The average prevalence of diabetes is 3%.
  • Thus 30 million people in India are estimated to havediabetes.
  • Only 15% receive treatment - this gives us a number of 4.5 million persons being treated for diabetes.
  • Of these 4.5 million people, 50%, 25%, and another 25% are in the low, medium and high resource consumption groups respectively.
  • Assuming an average cost of about Rs.3,600/-, Rs.5,400/- and Rs. 12,000/- per year for the low, medium and high resource consumption groups and with an exchange rate of Rs.48/- to a dollar we would get a sum of Rs. 27.67 billion for the total cost and 13.5 billion for the high, 6.07 billion for the medium and 8.10 billion for the low resource consumption group respectively.
     
    Now if we change the numbers and say that by increasing awareness in the public about diabetes the number of people treated with diabetes move from 15% to 20%. Which means that now 6 million out of 30 million are being treated. These additional 1.5 million would go into the Low Resource Group and therefore the proportion of patients in the Low, Medium and High resource Group consumption will become 58.4, 20.8 and 20.8%. Because people are being diagnosed very early the amount of spending on the Low Resource Group drops down from Rs.3,600/- to Rs.2,800/-, while in the medium group it falls to Rs. 4,800/- and in the higher group to Rs. 10,000/-. After making these changes, can press recalculate and the system will show a new overall figure of 28.28 billion.
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