Press Release

Study Shows New HIV Therapies Cut Medical Costs

March 12, 2001

SAN DIEGO -- New ways of treating the AIDS virus, using up to four or five drugs in combination, are driving down medical costs for HIV patients, according to a study published in the March 15 New England Journal of Medicine.

Researchers with the U.S. Department of Veterans Affairs (VA), RAND Health and the University of California at San Diego tracked a national sample of nearly 3,000 HIV patients from 1996 to 1998. Drug costs were higher over time—reflecting the advent of new, stronger multi-drug treatments. But these expenses were more than offset by lower costs for medical care, such as clinic visits and hospital stays. Overall, the average per-patient health-care cost per year dropped from $20,300 in 1996 to $18,300 in 1998.

According to study leader Samuel A. Bozzette, M.D., Ph.D., the drop in costs is attributable to the new generation of HIV treatments, known as highly active antiretroviral therapy (HAART). These treatments, while somewhat controversial due to serious side effects, are widely recognized as a life-extending measure for AIDS patients.

"Along with the increasing use of better and more expensive antiviral therapy, we’ve seen a significant decline in hospital use and lower overall health-care costs," said Dr. Bozzette, of the VA San Diego Health Care System, RAND Health and the University of California at San Diego.

Dr. Bozzette said that investment in the development of new drug therapies pays off in lower health care costs.

"This investment has paid net economic and clinical gains, even without considering the economic benefits of HIV patients being able to return to work."

At the same time, the study found less significant benefits for traditionally underserved groups, such as women, African Americans and those insured by Medicaid. Among these groups, inpatient hospital care continued to account for up to 50 percent of the costs of their HIV care. For other HIV patients, hospital stays accounted for only 10 to 25 percent of their HIV care.

According to the Centers for Disease Control and Prevention, 800,000 to 900,000 Americans are living with HIV infection.

Dr. Bozzette’s research was funded by VA’s Health Services Research and Development program and the Agency for Health Care Policy and Research.

VA research provides improved medical care for veterans, as well as the general population. Through its unique affiliation with medical schools, VA plays a crucial role in educating future physicians in research and clinically oriented areas.

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