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ANNUAL DIRECT COST OF TREATING MELANOMA PROJECTED
NEW YORK, NY (April 29, 1998) -- The direct cost of treating newly diagnosed melanoma in 1997, was estimated to be at least $563 million and may exceed $1 billion, according to findings from a new study. The findings were presented by study author, Gary S. Rogers, M.D., associate professor of surgery and co-director, Skin Oncology Program, Boston University School of Medicine, at the American Academy of Dermatology's "Melanoma/Skin Cancer Detection and Prevention Month" press conference, held today.
The study estimated the direct cost of diagnosing and treating melanoma, based upon the number of projected cases of melanoma entering each stage in 1997. The researchers found that about 90 percent of the direct cost for treating melanoma was attributable to those with advanced stages of the disease. They represent less than 20 percent of all patients.
"A full analysis of the actual cost of treating melanoma should include factors such as the effectiveness of treatment at various stages, the risks of complications and time lost from work," noted Dr. Rogers. "Our study looked strictly at the cost of the actual treatment. If all of the other factors were calculated, we feel the economic cost of melanoma would be several-fold higher."
On a per-patient basis, the costs were approximately $1,310 for a stage 1 patient; $3,300 for a stage II patient; $41,705 for a stage III patient; and $42,410 for a stage IV patient.
"The screening efforts of groups like the American Academy of Dermatology facilitate early detection of melanoma," said Dr. Rogers. "The earlier the melanoma is diagnosed, the higher the survival rate. Early detection saves both lives and money."
One disturbing finding revealed that when individual groups are segregated, the single most costly consumption of healthcare money is terminal care for the patient. This component utilized close to $200 million or some 35 percent of last year's estimate.
Researchers used 1997 Boston area reimbursement schedules to determine individual treatment costs. When available, Medicare reimbursements based upon CPT codes were used as a source. In addition, the estimate for the number of newly diagnosed people with melanoma in 1997 was provided by information obtained through the U.S. Bureau of the Census and the National Cancer Institute's Surveillance, Epidemiology and End Results Program.
The complete study appears in the May issue of the Journal of the American Academy of Dermatology.
The AAD is the world's largest organization of dermatologists representing 11,500 physicians that are experts in treating skin, hair, and nails.
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