Return on investment 2: evaluating the cost-effectiveness of needle and syringe programs in Australia 2009

Economic evaluation of NSPs in Western Australia

Page last updated: 2009

The spending of $12.9m in the funding of NSPs in Western Australia from year 2000-2009 has resulted in a saving of $124m in healthcare costs, with more than 19,000 Disability Adjusted Life Years saved with a net financial saving of $111m. A summary of the return on investment of NSP funding in Western Australia is shown in Table 38. The mathematical and economic modelling estimated that if NSPs are continued at the same level of funding in Western Australia for the next ten years, $520m of net financial savings will accrue ($456m discounted at 3%) and for twenty years $1,060m ($804m discounted at 3%). The lifetime net present value of investment in NSPs that took account of all healthcare costs and savings (but not costs associated with productivity losses) would be $5.63bn ($1.97bn discounted at 3%).

Table 38: Return on Investment of NSP funding in Western Australia (2000-2009)

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Healthcare costs saved $m (IQR)
11
(10-12)
11
(10-12)
11
(10-13)
11
(10-13)
11
(11-13)
12
(11-14)
13
(12-15)
14
(12-16)
15
(13-18)
16
(14-20)
NSP funding $m (median)
1
1
1
1
1
1
1
1
1
1
Net cost savings $m (median)
10
10
10
10
10
11
11
12
13
15
DALY gain (median)
1,460
1,643
1,745
1,815
1,873
1,947
2,055
2,180
2,323
2,487

Please note that any inconsistencies between the figures presented in the above text and table are due to rounding. Additionally, the results for each jurisdiction are provided to assist in assessment of local return on investment. The small numbers in some jurisdictions may distort parameter uncertainties and should not be used to compare one jurisdiction with another.

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