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Economic Spillovers From Public Investments in Medical Countermeasures: A Case Study of a Burn Debridement Product

Published online by Cambridge University Press:  19 June 2017

Farah Farahati ,
Scott Nystrom ,
David R. Howell  and
Richard Jaffe
Farah Farahati*
Affiliation:
Gap Solutions, Inc, contractor to the US Department of Health and Human Services, and University of Maryland, School of Public Health, Department of Health Services Administration, College Park, Maryland
Scott Nystrom
Affiliation:
US Department of Health and Human Services, Assistant Secretary for Preparedness and Response, Washington, DC
David R. Howell
Affiliation:
US Department of Health and Human Services, Assistant Secretary for Preparedness and Response, Washington, DC
Richard Jaffe
Affiliation:
US Department of Health and Human Services, Assistant Secretary for Preparedness and Response, Washington, DC
*
Correspondence and reprint requests to Farah Farahati, University of Maryland, School of Public Health, 3310D School of Public Health (Bldg #255), 4200 Valley Drive, College Park, MD 20742-2611 (e-mail: [email protected]).
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Abstract

Objective

The US federal government invests in the development of medical countermeasures for addressing adverse health effects to the civilian population from chemical, biological, and radiological or nuclear threats. We model the potential economic spillover effects in day-to-day burn care for a federal investment in a burn debridement product for responding to an improvised nuclear device.

Methods

We identify and assess 4 primary components for projecting the potential economic spillover benefits of a burn debridement product: (1) market size, (2) clinical effectiveness and cost-effectiveness, (3) product cost, and (4) market adoption rates. Primary data sources were the American Burn Association’s 2015 National Burn Repository Annual Report of Data and published clinical studies used to gain European approval for the burn debridement product.

Results

The study results showed that if approved for use in the United States, the burn debridement product has potential economic spillover benefits exceeding the federal government’s initial investment of $24 million a few years after introduction into the burn care market.

Conclusions

Economic spillover analyses can help to inform the prioritizing of scarce resources for research and development of medical countermeasures by the federal government. Future federal medical countermeasure research and development investments could incorporate economic spillover analysis to assess investment options. (Disaster Med Public Health Preparedness. 2017;11:711–719)

Keywords

emergency medicinehealth care economics and organizationscost-effectivenessspilloverBass diffusion model
Type
Original Research
Information
Disaster Medicine and Public Health Preparedness , Volume 11 , Issue 6 , December 2017 , pp. 711 - 719
Copyright
Copyright © Society for Disaster Medicine and Public Health, Inc. 2017 

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Footnotes

*

Drs Farahati and Nystrom contributed equally to this article.

References

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