Abstract:
Healthcare spending in Australia has increased rapidly in recent decades, partly due to the prevalence of lifestyle related illness, as physical inactivity and ageing have become common. Diabetes is a chronic and costly illness resulting from poor lifestyle choice and ageing. In this study, 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 will amount to $9.2 billion over the next 30 years. Most of the cost from this complication comes from the clinical stage of diabetic kidney disease.