Estimating the Long-Term Costs of Diabetic Kidney Disease: An Economic Approach

Healthcare spending in Australia has increased rapidly in the past two decades. Part of this has come from the prevalence of lifestyle related illness and demographics, as physical inactivity and ageing have become common. Diabetes is a chronic and costly illness resulting from poor lifestyle choice and ageing. To show the potential future health funding requirements as a result of continuing changes in Australian lifestyle characteristics and demographics, we estimate the long run cumulative costs of a complication of diabetes, diabetic kidney disease, using well known techniques from health economics. We find that spending on treatment for diabetic kidney disease alone will amount to an average of A$300m per annum for the next thirty years. This figure can be reduced if healthy living habits are promoted in populations at risk.