Presentation on theme: "BOSTON CHICAGO DALLAS DENVER LOS ANGELES MENLO PARK MONTREAL NEW YORK SAN FRANCISCO WASHINGTON Economic Impact of the Clinical Benefits of Bariatric Surgery."— Presentation transcript:
BOSTON CHICAGO DALLAS DENVER LOS ANGELES MENLO PARK MONTREAL NEW YORK SAN FRANCISCO WASHINGTON Economic Impact of the Clinical Benefits of Bariatric Surgery in Morbidly Obese Patients with Diabetes: An Observational Study Samuel Klein, M.D.; 1 Arindam Ghosh, PhD; 2 Pierre-Yves Cremieux, PhD; 2,3 Sara Eapen, PhD; 2 Tamara J. McGavock, BA 2 1 Center for Human Nutrition, Washington University School of Medicine in St. Louis 2 Analysis Group, Inc., Boston, Massachusetts, USA 3 Université du Québec à Montréal, Montréal, Québec, Canada Prepared for: First Canadian Summit on Metabolic Surgery for Type II Diabetes May 7, 2010 Preliminary – Do Not Cite Without Permission from Authors
Page 1 FIRST CANADIAN SUMMIT ■ MAY 7, 2010 Disclaimer Sponsored study funded by Ethicon Endo-Surgery, Inc Ethicon Endo-Surgery, Inc. has no independent knowledge concerning the information contained in this article, and findings and conclusions expressed are those reached by the authors This presentation is the work of the author and may not necessarily reflect the views of Ethicon Endo-Surgery, Inc.
Page 2 FIRST CANADIAN SUMMIT ■ MAY 7, 2010 Background In 2007, the prevalence rate of diabetes in the US was 7.8%, affecting 12 million men and 11.5 million women 1 Estimated yearly costs of managing a diabetes patient ($13,243) are more than five times that of a patient without diabetes ($2,560) 2 The estimated annual total economic cost of diabetes in the US was $174 billion in 2007 – $116 billion in medical expenditures and $58 billion in reduced productivity Obesity is a major risk factor for type II diabetes,3 and the risk of diabetes increases directly with body mass index (BMI)4 Diabetes-related costs represent a disproportionate share of healthcare costs among the obese 5 Weight loss is an important therapeutic goal in obese patients with type II diabetes, because even moderate weight loss (5%) improves insulin sensitivity6 Bariatric surgery is the most effective weight loss therapy and has considerable beneficial effects on diabetes7,8,9
Page 3 FIRST CANADIAN SUMMIT ■ MAY 7, 2010 Effect of Bariatric Surgery on Comorbidities
Page 4 FIRST CANADIAN SUMMIT ■ MAY 7, 2010 Effect of Bariatric Surgery on Comorbidities
Page 5 FIRST CANADIAN SUMMIT ■ MAY 7, 2010 Effect of Bariatric Surgery on Comorbidities
Page 6 FIRST CANADIAN SUMMIT ■ MAY 7, 2010 Effect of Bariatric Surgery on Comorbidities
Page 7 FIRST CANADIAN SUMMIT ■ MAY 7, 2010 Objective To estimate the economic impact of the clinical benefits of bariatric surgery on medical costs and return on investment (RoI) of the surgery in morbidly obese diabetes patients
Page 8 FIRST CANADIAN SUMMIT ■ MAY 7, 2010 Data Source De-identified health insurance and disability claims from approximately 8.5 million employees, spouses, and dependents from 40 large companies throughout the U.S. Time period covered: January 1, 1999 - December 31, 2007 The database includes: Outpatient medical services (including diagnoses and procedures) Inpatient medical services (including diagnoses and procedures) Outpatient prescription drug dispensing records Demographics Enrollment history Billed charges Insurance payments
Page 9 FIRST CANADIAN SUMMIT ■ MAY 7, 2010 Methods
Page 10 FIRST CANADIAN SUMMIT ■ MAY 7, 2010 Sample Selection Patients with diabetes at baseline, were identified using the following criteria: At least one bariatric surgery claim (HCPCS codes: 43770, 43644, 43645, 43845, 43846, 43847, 43842, 43843, S2085, S2082, S2083) for surgery patients. No bariatric surgery claim for control patients* The date of the first such claim was identified as the date of surgery (index date) At least one medical claim with the diagnosis of morbid obesity (ICD-9-CM: 278.01) anytime prior to index date At least six months of continuous enrollment prior to the initial date of index and one month following** Age between 18 and 65 as of the index date Diabetes diagnosis prior to index date * For surgery eligible controls, the index date is their matched patient surgery date. ** The average patient length in the sample was 18 months.
Page 11 FIRST CANADIAN SUMMIT ■ MAY 7, 2010 Identifying Patients with Diabetes Following Pladevall et al., 10 patients were classified as having diabetes if both of these were true in the months five through two prior to index date ≥ 1 medical claim for any of these conditions o Diabetes (ICD-9-CM 250.xx)* o Dyslipidemia (ICD-9-CM 272.xx) o Hypertension (ICD-9-CM 401.xx-405.xx) ≥ 1 drug claim for anti-diabetic medications *Includes type I and II diabetes
Page 12 FIRST CANADIAN SUMMIT ■ MAY 7, 2010 Matching Diabetic Surgery and Control Patients Each diabetic surgery patient was matched to a diabetic control on the following socio-demographic and comorbid characteristics: Age group (18-30, 31-40, 41-50, and 51-60) as of index date Gender Other Comorbidities (Asthma, Coronary Artery Disease, Gall Stones, Gastroesophageal Reflux, NASH/NAFLD, Sleep Apnea, Urinary Incontinence) State of residence 5-month pre-surgery direct costs (excluding month prior to index date) In case of multiple matches, we randomly selected one
Page 13 FIRST CANADIAN SUMMIT ■ MAY 7, 2010 The cost associated with bariatric surgery (“investment”) is estimated from the incremental costs incurred during the surgery hospital stay, and, typically, in the month prior to the surgery, and the two months after surgery Cost savings from bariatric surgery are calculated as the difference in direct costs between bariatric surgery patients and their controls The ROI is the ratio of cost savings to the initial surgery investment cost Both the cost associated with bariatric surgery and the associated cost savings are estimated using a multivariate analysis Monthly medical costs were normalized to December 2008 dollar value by first deflating by the CPI-MC (medical care consumer price index) and discounting by the 3-month T-bill rate of 3.22% Methods: Calculation of ROI
Page 14 FIRST CANADIAN SUMMIT ■ MAY 7, 2010 The normalized monthly costs were regressed (using a Tobit model with cluster option) on an indicator variable for bariatric surgery interacted with a number of time indicator variables: Three to Six Months Prior to Surgery; Month Prior to Surgery; Time of Surgery; Two Months Post Surgery; Three to Six Months Post Surgery; Seven to Twelve Months Post Surgery; Thirteen to Eighteen Months Post Surgery; Nineteen to Twenty-Four Months Post Surgery; Twenty-Five Months or More Post Surgery Additionally, the multivariate model also controls for: Age A number of comorbidities which were not used for matching in the first step including breast cancer, congestive heart failure, lymphedema, major depression, osteoarthritis, polycystic ovary syndrome, pseudo tumor cerebri, and venous stasis/leg ulcers Calculating an ROI (contd.)
Page 15 FIRST CANADIAN SUMMIT ■ MAY 7, 2010 Outcome Measures Three outcome measures were compared between diabetic surgery and control patients post index date Total medical costs Diagnostic claims for diabetes, where diabetes is defined using the definition in Pladevall et al. Trend in diabetes diagnostic claims was calculated using the percentage of available patients satisfying the diabetes definition post index Frequency and pattern of use of anti-diabetic medication Non-Insulin medications including Sulfonylureas, Biguanides, Alpha-Glucosidase Inhibitors, Meglitinides, Thiazolidinediones, DPP-4 Inhibitors, Incretin Mimetics, Synthetic Amylin Analogs Insulin medications Adjusted average total anti-diabetic drug costs including supplies post index date Calculated as the total of the amounts covered by both insurance and co-pay for each prescription fill Outcomes between surgery and control patients were compared using chi squared tests for categorical measures and Wilcoxon rank sum tests for continuous measures
Page 16 FIRST CANADIAN SUMMIT ■ MAY 7, 2010 Results
Page 17 FIRST CANADIAN SUMMIT ■ MAY 7, 2010 Results: Baseline Comorbidities (Patients vs. Controls 6 months prior to surgery date) *Significant at the 95% level Baseline Characteristics Surgery Patients Control Patients (N=808) Demographic Characteristics Age on Index Date (Median [IQR])53 (47-57)53 (47-59) Female (%)72.8 Matched Comorbidities (%) Diabetes100 Sleep Apnea 21.7 Coronary Artery Disease 7.8 Gastroesophageal Reflux 6.6 Asthma 3.2 Gall Stones 0.6 NASH/NAFLD 0.1 Urinary Incontinence0.1 Other Comorbidities (Controlled for in Multivariate Analysis) Osteoarthritis10.911.9 Major Depression * 9.3 5.1 Congestive Heart Failure 3.5 4 Lymphedema 0.5 0.2 Polycystic Ovary Syndrome 0.5 Breast Cancer* 0.4 1.7 Venous Stasis and Leg Ulcers 0.2 0.4 Pseudo Tumor Cerebri 0.1
Page 18 FIRST CANADIAN SUMMIT ■ MAY 7, 2010 Results: Baseline Health Care Utilization and Costs (Patients vs. Controls 6 months prior to surgery date) *Significant at the 95% level Cost are calculated based on months -6 to -2. Surgery PatientsControl Patients Health Care Utilization (%)(N=808) Inpatient Visit *23.18.5 ER Visit * 13.2 17.1 Outpatient Hospital Visit * 90.8 67.5 Office Visit99.999.4 Use of Medication for Weight Loss1.51.6 Health Care Costs ($, median [IQR]) Drug Costs *1,231 (680-2,005)1,450 (790-2,656) Medical Costs * 1,579 (585-3,422) 878 (358-2,370) Total Health Care Costs3,209 (1,828-5,192)2,842 (1,516-5,262)
Page 19 FIRST CANADIAN SUMMIT ■ MAY 7, 2010 Results: ROI to Bariatric Surgery, Multivariate Analysis 1 1.The multivariate model controls for age, gender, and the following comorbidities: breast cancer, congestive heart failure, lymphedema, major depression, osteoarthritis, polycystic ovary syndrome, pseudo tumor cerebri, and venous stasis/leg ulcers. 2.There are no procedure codes that break out laparoscopic surgery until 2004. * Significant at the 5% level Dependent Variable: Direct Monthly Costs ($) 2 All SurgeriesOpen Surgeries Laparoscopic 1999-20071999-20032004-2007 (N=808)(N=246)(N=204)(N=358) Months Six to Two Prior to Surgery -199*-199 49-221 Month Prior to Surgery 1,038*1,000* 759*1,157* Time of Surgery 21,247*25,623* 23,148*17,092* Month One and Two Following Surgery 1,516*2,246* 2,469*438* Months Three to Six Following Surgery -500*-416 -615*-464* Months Seven to Twelve Following Surgery -615*-597* -776*-496* Months Thirteen to Eighteen Following Surgery -641*-806* -643*-470 Months Nineteen to Twenty-Four Following Surgery -1,231*-1,286* -1,434*-1,013* Months Twenty-Five and Longer-1,019*-1,095*-1,267*-1,257*
Page 20 FIRST CANADIAN SUMMIT ■ MAY 7, 2010 Results: RoI to Bariatric Surgery for U.S. Diabetes Population, Multivariate Analysis (Mean and 95 Percent Confidence Interval)
Page 21 FIRST CANADIAN SUMMIT ■ MAY 7, 2010 Results: ROI to Bariatric Surgery, All Patients *Total Direct Medical Costs in December 2008 dollars. Inflated to 2008 dollars using CPI-MC (medical care consumer price index) and grown at a rate of 3.22%.
Page 22 FIRST CANADIAN SUMMIT ■ MAY 7, 2010 Diagnostic Claims for Diabetes (Diabetes Diagnosis) Solid Line = Control PatientsDotted Line = Surgery Patients
Page 23 FIRST CANADIAN SUMMIT ■ MAY 7, 2010 Trend of Diabetes Medication Claims (Prescription Fill) Solid Line = Control PatientsDotted Line = Surgery Patients
Page 24 FIRST CANADIAN SUMMIT ■ MAY 7, 2010 Trend of Diabetes Medication Claims Pre-Index Insulin Claimants Black = InsulinStriped Lines = Non-Insulin Medication White = No Medication
Page 25 FIRST CANADIAN SUMMIT ■ MAY 7, 2010 Trend of Diabetes Medication Claims Pre-Index Non-Insulin Medication Claimants Black = InsulinStriped Lines = Non-Insulin Medication White = No Medication
Page 26 FIRST CANADIAN SUMMIT ■ MAY 7, 2010 Adjusted Diabetes Medication and Supply Costs Solid Line = Control PatientsDotted Line = Surgery Patients
Page 27 FIRST CANADIAN SUMMIT ■ MAY 7, 2010 Conclusions
Page 28 FIRST CANADIAN SUMMIT ■ MAY 7, 2010 Conclusion on Economic Outcomes The initial investment averaged approximately $25,000 for all surgeries 1999- 2007, $31,000 for open surgeries 1999-2003, $29,000 for open surgeries 2004-2007, and $19,000 for laparoscopic surgeries 2004-2007. When the comorbidities and demographic factors are controlled for, initial investment is returned within: 30 months for patients who undergo any type of bariatric surgery. 29 months for patients who undergo open surgery. 26 months for patients who undergo laparoscopic surgery. Cost savings associated with surgery started accruing at month 3.
Page 29 FIRST CANADIAN SUMMIT ■ MAY 7, 2010 Conclusion on Clinical Benefit Outcomes For diagnostic claims of diabetes, by the first three-month period after surgery, 40.7% of surgery patients had a diabetes related claim compared to 72.1% of control patients (p<.001). By month 6, only 28.2% of surgery patients reported a claim of diabetes versus 73.5% of control patients (p<.001) By the first three-month period post-index, 45.6% of surgery patients had filled a prescription for diabetes medication in the previous 3 months, compared to 90.8% of control patients. At month 6, the percentages were 33.5% and 89.7%, respectively (p<.001). Among patients who had insulin claims prior to index date, insulin claims dropped to 42.8% for surgery patients and remained at 92.4% for control patients at month 3 after index (p<.001). Among surgery patients who had claims for non-insulin diabetes medications prior to surgery, 37.3% had claims for non-insulin medications at month 3, compared with 86.3% of control patients (p<.001). 84.5% of surgery patients who had claims for non-insulin medication at index had no claims for any diabetes medications by month 36. By the first three-month period after index, the average total cost of diabetes medications and supplies for surgery patients was $33, compared to $123 for control patients.
Page 30 FIRST CANADIAN SUMMIT ■ MAY 7, 2010 Conclusions Bariatric surgery has a large, statistically significant and sustained positive effect on diabetes within six months, in obese patients. Surgery patients appear to have resolution or more durable control of their diabetes compared to controls, as evidenced by their switching patterns of anti- diabetic medications, post index date. The results of this study demonstrate that the clinical benefits of bariatric surgery in morbidly obese diabetes patients translate into considerable economic benefits. These data indicate that surgical therapy is clinically more effective and ultimately less expensive than standard therapy for morbidly obese diabetes patients.
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BOSTON CHICAGO DALLAS DENVER LOS ANGELES MENLO PARK MONTREAL NEW YORK SAN FRANCISCO WASHINGTON Pierre Cremieux Managing Principal Analysis Group, Inc. 111 Huntington Avenue Boston, MA 02199 617-425-8135 email@example.com