Media Releases

Returns on Investment in Public Health: An Epidemiological and Economic Analysis

The report 'Returns on Investment in Public Health: An Epidemiological and Economic Analysis', recently released, suggests that public health campaigns have not only resulted in reductions in cases of disease, but have produced significant and positive returns on our investments.

7 April 2003

Returns on Investment in Public Health: An Epidemiological and Economic Analysis

The old saying that prevention is better than a cure is not only true in terms of reduced illness, but also in significant savings to the health system, according to a report released today by Federal Minister for Health and Ageing, Senator Kay Patterson.

The report - Returns on Investment in Public Health: An Epidemiological and EconomicAnalysis - commissioned by the Commonwealth Government, suggests that public health campaigns to address tobacco consumption, childhood immunisation, HIV/AIDS, road trauma and heart disease have not only resulted in reductions in cases of disease, but have produced significant and positive returns on our investments.

"Prevention efforts are designed to reduce the burden of disease within a community and I believe that prevention and early diagnosis are necessary parts of the curative system," Senator Patterson said.

"For far too long prevention initiatives and their benefits to the health of the community have not been taken as seriously as acute care and the treatment of diseases."

"However, reports such as the Returns on Investment in Public Health clearly show the benefits of investing in prevention programs in terms of longevity, improved health status and lower health care expenditures."

"For example, between 1970 and 2000, measles notifications fell from 100,000 to 2000 cases annually and subsidised immunisation for measles since 1970 has saved an estimated 95 lives and averted approximately four million cases between 1970 and 2003. The estimated net present value of measles programs has exceeded $8.4 billion for Government and $9.1 billion for society. This is a saving of $155 for every $1 spent on preventing measles since 1970."

"The report also found that the net benefits of reduced tobacco consumption as a result of the investment a range of public health measures were a massive $8.4b.

"In 1998 an estimated 17,400 premature deaths were averted because of reduced tobacco consumption. This included 6900 fewer deaths from coronary heart diseases, 4000 fewer deaths from lung cancer, 3600 fewer deaths from bronchial conditions and 2900 deaths from stokes and other cancers averted."

"The report suggests that the estimated total benefits of health improvement in 1998 alone, due to lower tobacco consumption from 1970 onwards, is $12.3 billion and smoking prevention programs have saved the Government $2 for every $1 spent over the past three decades."

"As Federal Health Minister I am committed to putting more focus on prevention and individuals taking more responsibility for maintaining their health.

"The Government's approach to public health promotion, which includes encouraging people to take responsibility for their lifestyle and general wellbeing, is aimed at making prevention a fundamental component of a more effective and sustainable healthcare system," Senator Patterson said.

Copies of Returns on Investment in Public Health can be found on the Health Department's website: www.health.gov.au/internet/main/publishing.nsf/Content/health-pubhlth-publicat-document-roi_eea-cnt.htm

Media inquiries, contact Sarah Higginbottom, Media Adviser, Senator Patterson's office, 02 6277 7220.