Title: Unit Costs of Health and Social Care
Funder: Department of Health and Social Care

Abstract: Background The Unit Costs of Health and Social Care has been produced every year since 1992. The volumes bring together information from a variety of sources to estimate the most up-to-date nationally-applicable unit costs for a wide range of health and social care services in England. Based in economic theory, the volumes present the unit costs and the estimation methods used, and provide references for data sources and other cost-related research, as well as short articles and commentaries. The current volume* provides detailed information on more than 130 service types. Each year the volume is circulated to around 200 people, is fully downloaded on average 680 times a month throughout the year, and there are further partial downloads. * available at /www.pssru.ac.uk/uc/uc2010contents.htm Aims A key element of policy evaluation is identifying cost implications. Unit costs play a fundamental role in this process, both directly and indirectly, by feeding into cost-effectiveness evaluations.The annual Unit Costs of Health and Social Care volumes are used extensively by the DH and researchers, increasing the effectiveness and efficiency of the policy evaluation process by providing a ready reference point, with transparent estimates and assumptions, drawing on and contributing to the evidence base. The aims of the work are: to ensure this key information on high-quality cost estimation continues to be easily available; and to continue to improve the quality and breadth of available unit costs through methodological development and synthesis of existing evidence. Plan of investigation We plan to continue to update and improve unit cost estimates for a wide variety of services, drawing on a range of sources. Also, we will estimate unit costs for services and supports so far unexplored, and identify, develop and disseminate good cost estimation practice in new areas, such as public health and for new technologies. We also intend to expand our current focus to include costs for some new treatment/care processes and key events (for example, stroke). We will also explore the most useful ways to present unit and event costs to policy makers. Potential Impact A search on the Web of Science database showed that 56% of all economic evaluations or cost-effectiveness studies published in English journals between 2003 and 2008 have cited the Unit Costs of Health and Social Care reports. They have also been: cited by the Treasury and used as part of policy development and in advising ministers on policy options; recommended in NICE guidelines as a source of cost data; used by Pharmaceutical Medicine and Research, the Royal Society of Medicine, the National Audit Office, the Office for Health Economics, the Office for Fair Trading and the Home Office and local health and social care organisations to help understand the cost implications of policy options and choices, and have recently been used to benchmark day care prices by mental health charities.

Lay abstract: Each year the Unit Costs of Health and Social Care volume has been produced by researchers at the Personal Social Services Research Unit (PSSRU). The work has been funded by the Department of Health since 1992. Producing this annual volume involves updating existing unit costs and estimating new ones from research reports and routinely collected data. We also develop and put in place new methods to improve some of the unit costs and their component parts. In addition, we respond to queries about our work, and write and submit papers to peer-reviewed journals. These activities would continue. We would also expand the number of service types to include those required by upcoming policy directions. New unit costs for 2011, for example, may include end-of-life care, adoption and shared lives, and three new areas are to be considered for future volumes. Two are new ‘service’ areas: preventive interventions and public health interventions. The third is to explore the potential for including the cost impact of particular events such as stroke, myocardial infarction, diabetic foot amputation, or psychotic relapse. These are often required in economic evaluations and in estimating the future cost savings of interventions. In addition, we would explore better ways of presenting and disseminating the data. We would ensure that the current Advisory group arrangements continue. Currently, our Advisory group includes representatives from the Department of Health SCIE, as well as some of the foremost academics working in health and social care economics. A particular task for the Advisory Group in the new funding period would be prioritise the new research activities over the five-year period.

Research activity codes: 8.2 HEALTH AND WELFARE ECONOMICS
Health categories: GENERIC HEALTH RELEVANCE