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Understanding the value of chronic disease care is critical to confronting the challenges of aging societies. In a new ebook published by the Centre for Economic Policy Research, APARC Deputy Director and Asia Health Policy Program Director Karen Eggleston provides a framework for assessing the social value of health spending.

The world population is aging faster than ever before and governments must confront the increasing burden of healthcare spending on their economies. At a time when the economics of aging is inseparable from the economics of healthcare, successful adaptations to older population age structures necessitate better understanding of the value of medical care. Policymakers, in particular, must incorporate value into considerations of healthcare cost growth, so they can determine the extent to which average health improvements offset added cost, reduce cases in which health spending rises without sufficient corresponding health outcomes, and reward those in which “we are getting what we pay for.”

A new book chapter, authored by APARC Deputy Director and Asia Health Policy Program Director Karen Eggleston, provides a framework for assessing the social value of health spending. Titled “Understanding ‘value for money’ in healthy aging,” the chapter is part of an ebook, Live Long and Prosper? The Economics of Ageing, published by the Centre for Economic Policy Research (CEPR).

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Quality-Adjusted Cost of Care

How do health economists incorporate value into measurements of health spending and how do they measure the social value of medical care? First they assume each additional year of life brings a given monetary value. Then they measure the growth in value to patients as monetized gains in “quality-adjusted life-years,” a metric that includes increases in life expectancy and quality of life. The difference between the change in health spending and the change in monetized gains on improved survival is the net change in quality-adjusted health spending or the net value of medical care.

Understanding the value of chronic disease care is especially critical in aging societies, as governments must transform their health systems to support patients who will live with chronic diseases for decades. Health benefits of medical care, however, are difficult to aggregate across disparate services and diseases, and hence focusing on management of a single important chronic disease allows researchers to develop metrics of quality improvement and value that are linked to rigorous clinical studies. Eggleston describes a recent international research collaboration, which she was part of, that did just that. The researchers studied quality adjustment for one disease of growing global prevalence, type 2 diabetes, in four different health systems: one in Europe (the Netherlands) and three in East Asia (Japan, Hong Kong, and Taiwan).

Results of the study suggest that, in each health system, the value of improved survival outweighs the increase in health spending. For example, in the case of Japan, Eggleston and her colleagues found a positive value net of $2,595 for $100,000 value of a life-year. They also compared net value across the four health systems and different patient samples, finding mean net value that ranged between $600 and $10,000 for a $100,000 value of a life-year. Moreover, net value was positive for all age groups and remains positive and significant for individuals well beyond traditional retirement ages. These results, says Eggleston, indicate “the importance of continuing investments in medical treatments and services that deliver health outcomes of commensurate or higher value.”

Policy Implications

Confronting the challenges of aging societies requires careful thinking about the value of investments in new technologies for managing chronic conditions. To promote healthy aging governments must be “resiliently persistent in measuring the value of innovations for healthy aging and rewarding those that deliver high net value,” argues Eggleston. The goal should be improving the “value for money” of medical care rather than applying largescale cost controls that might stifle important breakthroughs.

The four-system study by Eggleston and her colleagues provides a framework for developing methods for assessing quality improvement and the net value of chronic disease spending and, more broadly, for measuring the value of healthy aging.


Download Eggleston’s chapter as part of the entire ebook >>

Learn more about Dr. Karen Eggleston’s research agenda seeking to assess net value in diabetes management and to identify and analyze innovation for healthy aging.

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Brigadier General Robert Spalding (US Air Force, Retired)

Robert Spalding is a national security policy strategist, and globally recognized for his knowledge of Chinese economic competition and influence, as well as for his ability to forecast global trends and develop innovative solutions. He has served in senior positions of strategy and diplomacy within the Defense and State Departments for more than 26 years, retiring as brigadier general.

He was the chief architect for the Trump Administration’s widely praised National Security Strategy (NSS), and the Senior Director for Strategy to the President at the National Security Council.
 
Dr. Spalding is a skilled combat leader, and a seasoned diplomat. Under Dr. Spalding’s leadership, the 509th Operations Group—the nation’s only B-2 Stealth Bomber unit—experienced unprecedented technological and operational advances. Dr. Spalding’s demonstrated acumen for solving complex technological issues to achieve operational success, was demonstrated when he led a low-cost rapid-integration project for a secure global communications capability in the B-2, achieving tremendous results at almost no cost to the government. As commander, he led forces in the air and on the ground in Libya and Iraq. He is a former China strategist for the chairman of the Joint Chiefs of Staff and the Joint Staff at the Pentagon, as well as having served as the senior defense official and defense attaché in Beijing. During the UUV Incident of 2016, Dr. Spalding averted a diplomatic  crisis by negotiating with the Chinese PLA for the return of the UUV, without the aid of a translator.
 
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Dr. Spalding has written extensively on national security matters. His book, Stealth War: How China Took Over While America’s Elite Slept (Portfolio; 2019) is an executive summary of his almost decade-long work countering Chinese Communist Party influence. It is being translated into additional languages. His work has been published in The Washington Post, The Washington Times, Foreign Affairs, The American Interest, War on the Rocks, FedTech Magazine, Defense One, The Diplomat, and other edited volumes. His Air Power Journal article on America’s Two Air Forces is frequently used in the West Point curriculum. He has been interviewed on FOX News and CNBC, as well as numerous radio and YouTube channels, both nationally and internationally.
Brigadier General Robert Spalding (US Air Force, Retired)
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The pontianak, or female vampire, is one of the most significant supernatural creatures, or hantu, in Malay cinema. A series of pontianak films were among the most successful made in the studio system in Singapore between 1957 and the city-state’s independence in 1965. Although the pontianak appeals to discourses of Malay cultural identity in particular, the films achieved something rare: they were popular across different races in late-colonial Singapore. In the 21st century, the pontianak genre has regained popularity in film and television by returning to the racialized politics of belonging in Malaysia and Singapore. The pontianak registers intersecting anxieties about femininity and modernity, race and nation, local and transnational cultural influences, and Islam in relation to indigenous beliefs. Prof. Galt’s talk will analyze the pontianak in recent Malaysian and Singaporean cinema and explore what the figure tells us about the role of film culture in shaping and contesting ideas of postcolonial Malay identity.

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Rosalind Galt is Professor of Film Studies at King’s College London. She studies how geopolitics, cinematic style, history, and sexuality interact. She is the co-author with Karl Schoonover of Queer Cinema in the World (2016); the author of Pretty: Film and the Decorative Image (2010) and The New European Cinema: Redrawing the Map (2006); and co-editor of Global Art Cinema: New Theories and Histories (2010). Her advanced degrees are from Brown University (PhD) and the University of Glasgow (MA with Honours).

Rosalind Galt 2019-2020 NUS-Stanford Lee Kong Chian Fellow on Contemporary Southeast Asia
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On 20 October 2019, Indonesia’s president Joko “Jokowi” Widodo began his second five-year term in office.  In his first successful presidential campaign in 2014, he promised to transform the country into a “Global Maritime Fulcrum”—a seemingly keystone role between the Indian and Pacific Oceans that comprise the now popular term “Indo-Pacific.” How has that vision fared, and what priority will it have in 2019-2024? How will Indonesia deal with Sino-American strategic competition? Will Indonesia’s national and regional security policies change or stay the same? In addressing these questions, the talk will feature not only the president but his new ministers’ political, bureaucratic, and personal goals and differences as well.  Laksmana will argue that, in practice, the GMF’s promise of proactive centrality has not been to date and is unlikely to be met in future. 

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Evan A. Laksmana, in addition to his position at CSIS in Jakarta, is completing his doctorate in political science at Syracuse University’s Maxwell School of Citizenship and Public Affairs, where he has been a Fulbright Presidential Scholar. He has held visiting fellowships and research positions with the National Bureau of Asian Research, Sydney University’s Southeast Asia Centre, the Lowy Institute for International Policy, the German Marshall Fund of the United States, and the S. Rajaratnam School of International Studies. Journals that have carried his scholarly work include Asian Politics & Policy, Asian Security, Contemporary Southeast Asia, Defense & Security Analysis, and the Journal of Contemporary Asia. Other writings have appeared in Foreign Affairs, Foreign Policy, The New York Times, and The Washington Post, among other publications.

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Evan A. Laksmana Senior Researcher, Centre for Strategic and International Studies (CSIS), Jakarta
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Diabetes is a significant problem worldwide and especially for developing countries including Thailand, where the disease has increased in prevalence rapidly, resulting in high healthcare expenditure and loss of productivity due to illness and premature death. Thailand has adopted multiple policies to control diabetes, such as screening through annual health checkups for people aged 35 and over, increasing healthcare access in rural communities, and developing diabetes clinical practice guidelines to improve the quality of care. However, multiple national health surveys still showed a rising pattern of diabetes in the country. To help understand and tackle the problem, we created a 10-year cohort using data from the national health exam survey (NHES) as a starting point and followed the population by linking to healthcare utilization and expenditure data from the universal health coverage scheme, the main health insurance program in Thailand. With this cohort, we study 3 topics. The first is to understand the burden of diabetes in the Thai health service system by calculating incidence of diabetes and its complications. Furthermore, we will identify factors which affect diabetes incidence and therefore can be used to create evidence-based control policies. Second, we seek to identify the bottleneck between each step in the “cascade of care” (screening, starting and adhering to treatment, and controlling disease). Finally, we will compare healthcare utilization patterns, expenditure, and outcomes related to diabetes between the overall population and vulnerable subgroups to identify factors that prevent vulnerable populations from obtaining better health outcomes.

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Wasin Laohavinij is a physician at King Chulalongkorn Memorial Hospital and a research assistant at Department of Preventive Medicine, Faculty of Medicine, Chulalongkorn University. His research focus on non-communicable disease prevention policies and economic evaluation of health promotion and prevention. Wasin Laohavinij completed his MD at Chulalongkorn University.

Wasin Laohavinij 2019-2020 Walter H. Shorenstein Asia-Pacific Research Center Visiting Scholar
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China’s national health reforms over the past two decades have brought the system closer to the modern, safe, reliable and accessible health system that is commensurate with China’s dramatic economic growth, improvement in living standards, and high hopes for the next generation. Celebrating a decade this year, China’s national health reforms of 2009 consolidated a system of social health insurance covering the entire population for basic health services, contributing to a surge in healthcare utilization while reducing out-of-pocket costs to patients – which declined from 56% to 28% of total health expenditures between 2003 and 2017. An expanded basic public health service package, funded by per capita government budget allocations that include a higher central government subsidy for lower income provinces, provides basic population health services to all Chinese. A higher percentage of Chinese accessed hospital admissions in 2017 than in the average high-income (OECD) country – a large increase from the turn of the 21st century.i A recent re-shuffle of the governance structure consolidates the purchaser role for social health insurance schemes under the newly created National Healthcare Security Administration, with most other health sector functions under the re-christened National Health Commission, among other changes. China’s world-leading technological prowess in multiple fields spanning digital commerce to artificial intelligence—and accompanying innovative business models such as WeDoctor that have not yet been fully integrated into the health system—hold promise for supporting higher quality and more convenient healthcare for China’s 1.4 billion.

Keywords: China; Health System

Published:   Healing-one-fifth-of-humanity

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Asia Health Policy Program working paper # 56
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Karen Eggleston
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Celebrated for its natural beauty and its abundance of wildlife, the Mekong River runs thousands of miles through China, Myanmar, Laos, Thailand, Cambodia, and Vietnam. Its basin is home to more than 70 million people and has for centuries been one of the world's richest agricultural areas and a biodynamic wonder. Today, however, it is undergoing profound changes. Development policies, led by a rising China in particular, aim to interconnect the region and urbanize the inhabitants. A series of dams will harness the river's energy.  But they will also disrupt its natural cycles and cut off food supplies for swathes of the population.  Based on conversations with the diverse people he has encountered from the Mekong’s headwaters in China to its delta in southern Vietnam, Eyler will review and assess the urgent struggle to save the Mekong and its unique ecosystem.  Copies of his latest book, Last Days of the Mighty Mekong (2019), will be available for sale.

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Brian Eyler is an expert on transboundary issues in the Mekong region, a specialist on China's economic cooperation with Southeast Asia, and co-founder of the website http://eastbysoutheast.com/.  Of his more than 15 years living and working in the PRC, he has spent the last ten doing research with stakeholders in the Mekong region. In China, before coming to the Stimson Center, he directed the IES Kunming Center at Yunnan University and served as a consultant to the UNDP Lancang-Mekong Economic Cooperation program.  His degrees are from UC-San Diego and Bucknell.

 

Brian Eyler Director, Southeast Asia Program, and Senior Fellow, Stimson Center, Washington, DC
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This seminar will present empirical evidence about policies to promote healthy lifestyles in China from a professor and a policymaker from the PRC.

As a result of economic growth, urbanization, lifestyle change, and population aging, Noncommunicable Diseases (NCDs) have become China’s leading cause of death, accounting for 86.6% of annual deaths. Almost two-thirds of NCDs can be prevented by reducing unhealthy lifestyle choices such as tobacco use, physical inactivity, harmful use of alcohol, and unhealthy diets. In particular, dietary risk factors and insufficient physical activity increasingly contribute to the surging burden of obesity in China and globally.

In 2016, President Xi Jinping announced the “Healthy China 2030” Blueprint. Three years later, a corresponding action plan was released and encompassed 15 goals, including reducing obesity, increasing overall physical activity, and preventing NCDs. The presenters will discuss results of research on the determinants of healthy diet, physical activity, obesity, and noncommunicable diseases, and provide evidence for implementation of Healthy China 2030. Their research includes aspects on (1) unhealthy food and beverage marketing to children; (2) the link between green space, physical activity, and health outcomes; (3) a strategy to involve government and non-health sectors in the prevention and control of NCDs in China; and (4) preventive vaccinations and primary care management for individuals living with NCDs like diabetes.

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Juan Zhang is Associate Professor at School of Public Health, Peking Union Medical College (PUMC) & China Academy of Medical Science (CAMS). She conducts research on risk factors of noncommunicable disease (NCD), such as obesity, hypertension, diabetes, nutrition, physical activity, using policy, socio-ecological, and behavioral approaches. She currently is principal investigators to (1) assessing mass media (mainly television) food advertisement, (2) investigate underlying family environment, school policy and environment of preschool children overweight and obesity, (3) evaluate the implementation and impact of government-led programs to prevent and control NCD. Prior to joining PUMC, Dr. Zhang has had diverse working experience over 10 years across national government agency, WHO, academic institutions, and multinational pharmaceutical company.

Dr. Juan ZHANG holds a Ph.D. in Health Behavior from the Indiana University Bloomington. She has published in the areas of chronic disease epidemiology, economic cost and behavioral determinants of obesity, and public health program evaluation. She serves as members of several professional societies, like Committee of Diabetes Prevention and Control of Chinese Preventive Medicine Association (CPMA), Committee of NCD Disease Prevention and Control of CPMA, Committee of Health Communication of China Health Education Association, and Committee of Student Nutrition and Health, Chinese Student Nutrition and Health Promotion Federation.

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Xiangyu Chen is a working staff from Non-communicable Disease (NCDs) Control and Prevention Department in Zhejiang Provincial Center for Disease Control and Prevention. He is a public health physician and his ongoing areas of research include development of risk prediction models using health check-up data, and cost-effectiveness evaluation for flu shots among the diabetes. He completed his MS in Epidemiology and BA in Preventive Medicine at Soochow University.

Juan Zhang Associate Professor, School of Public Health, Peking Union Medical College (PUMC) & China Academy of Medical Science (CAMS)
Xiangyu Chen Non-communicable Disease (NCDs) Control and Prevention Department, Zhejiang Provincial Center for Disease Control and Prevention
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The Walter H. Shorenstein Asia-Pacific Research Center’s Global Affiliates Program is excited to welcome its new class of fellows to Stanford University:

  • Sowmitra Chatterjee, Reliance Life Sciences
  • Lizhong Chen , SanJohn Capital Limited
  • Yufeng Geng, PetroChina
  • Hiroki Hara, Ministry of Finance, Japan
  • Yosuke Hatano , Shizuoka Prefectural Government
  • Ronghui Hu, Scihead Intellectual Property Co., Ltd.
  • Yongmin Hu, FountainVest Partners
  • Makoto Kanemaru, Mitsubishi Electric
  • Shintaro Nishihara, Future Architect
  • Yoshio Nose, Nissoken, Japan
  • Takafumi Ochiai, Asahi Shimbun
  • Kenichiroh Oyama, Ministry of Economy, Trade & Industry, Japan
  • Vikas Sett , Reliance Life Sciences
  • Kenichiro Shino, Asahi Shimbun
  • Chao Sun, D&C Think Tank, China
  • Kenta Uemura, Hokkoku Bank
  • Hideaki Yonekura, Japan Patent Office
  • Huasheng Zheng, PetroChina
 
Over the course of their year at Stanford University, fellows will audit classes, improve their English skills, and conduct individual research projects; at year's end, they will make a formal presentation on the findings from their research.
 
Throughout their time at the center, fellows have the opportunity to consult with Shorenstein APARC's scholars and attend events featuring visiting experts from around the world. Fellows will also participate in special events and site visits to gain a firsthand understanding of business, society, and culture in the United States.
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Shorenstein APARCStanford UniversityEncina Hall E301Stanford, CA 94305-6055
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Koret Fellow, 2019-20
Visiting Scholar at APARC
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Robert R. King was a Visiting Scholar, Koret Fellow at the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) during the 2019 fall term.  He is the former U.S. Special Envoy for North Korean Human Rights Issues at the U.S. Department of State (2009-2017).  He is Special Advisor to the Korea Chair at the Center for Strategic and International Studies (CSIS), a non-resident Fellow at the Korea Economic Institute, and a member of the board of the Committee for Human Rights in North Korea. 

Ambassador King’s research interests include North Korea human rights, Northeast Asia, U.S. foreign policy, and the Congressional role in U.S. foreign affairs.  During his time at Shorenstein APARC, he researched the United States efforts to promote human rights in North Korea.

Before assuming his position at the Department of State, King was Staff Director and Minority Staff Director of the Foreign Affairs Committee of the U.S. House of Representatives (2001-2009).  He served as Chief of Staff to Congressman Tom Lantos of California (1983-2008).  He was a White House Fellow on the staff of the National Security Council (1977-1978), and Senior Analyst and Assistant Director of Research at Radio Free Europe in Munich, Germany (1970-1977).

King holds a PhD and an MALD in international relations from the Fletcher School of Law and Diplomacy and a BA in political Science from Brigham Young University.

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