The Economic Value of Preventing Respiratory and Cardiovascular Hospitalizations

This article provides estimates of the economic benefits of reducing respiratory and cardiovascular hospitalizations based on cost of illness and willingness to pay. The willingness‐to‐pay estimates indicate that individuals value prevention of a five‐day hospitalization event at an average of approximately $2,400. Average total costs of illness per hospitalization are $22,000–39,000. A comprehensive cost‐of‐illness estimate that includes value of time losses for the hospitalization and at‐home recovery periods provides a close approximation of total costs borne by third parties plus individual willingness to pay. Both exceed previous cost‐of‐illness estimates by about 10–25%. (JEL D61, I18, Q25 )