Modeling the Costs of Radiotherapy in Europe

AuntMinnie | This question is not addressed in an article in press published 26 August in Radiotherapy and Oncology comparing the cost of radiotherapy at a Belgian hospital in
calendar years 2000 and 2009. However, the content of the article — a financial
cost model showing how expenses almost doubled during the course of a decade of
cancer treatment technology evolution — brings this issue to the front of a
reader’s mind.

In Belgium, the 88.8 million euro ($126 million U.S.) budget to provide
radiotherapy services in 2009 was twice the amount budgeted in 2000, an increase
explained in part by a 40% surge in the number of patients who needed treatment,
according to the article’s corresponding author Dr. Yolande Lievens, a radiation
oncologist at the University Hospitals Gasthuisberg in Leuven, Belgium.

And at University Hospitals Leuven specifically:

  • The cost of capital investments by the department of radiation oncology
    increased by 96% in 2009 compared with 2000.
  • Personnel costs in the radiotherapy department increased by 103%.
  • The cost of resources to provide electron-beam radiotherapy treatments
    (EBRT) increased by 89%, from an expenditure of 4.5 million euros ($6.4 million)
    in 2000 to 8.6 million euros ($12.2 million) in 2009.
  • The number of EBRT treatment-related activities also skyrocketed, more than
    doubling from a total of 2.7 million activities in 2000 to 5.5 million
    activities in 2009.

The cost allocation model

In 2000, the hospital developed a detailed cost model for its department of
radiation oncology. It was updated in 2009 to incorporate and capture new types
of costs incurred by new types of treatment, such as stereotactic body
radiotherapy (SBRT), volumetric arc radiotherapy, image-guided radiotherapy,
respiratory-gated radiotherapy (RGRT), and intensity-modulated radiotherapy

The model is based on ABC costing methodology, which assumes that activities
consume resources to produce products. The model includes resource costs and
activities costs.

Resource cost categories include hospital overhead costs to support the
department; costs associated with the physical space and rooms of the radiation
oncology department; wages for clinical, administrative, and support staff;
costs of equipment acquisition and maintenance; and material costs (both
consumable products and reusable products, such as a stereotactic frame).

Activity costs are categorized as being treatment-related,
department-supported, and hospital-supported. Products are defined as the list
of irradiation treatments that the department offers to patients. All costs are
ultimately allocated to products.

The cost model verified what the authors presumed: Costs increase with
treatment complexity, and more quality assurance activities also are needed to
guarantee safety as complexity escalates. The authors cited the example of 3D
conformal radiation therapy (CRT), which resulted in cost increases of
approximately 30% for tangential breast and high-grade palliative treatments.
Because the number of fractions for a treatment directly impacted costs,
increased use of hypofractionated schedules would decrease costs of a particular
treatment, and helped offset other costs incurred by its increased treatment

2000 vs. 2009

The authors used EBRT, a treatment that was performed throughout the decade,
to evaluate cost changes and trends. The most significant activity trend was
that the percentage of cost allocated to quality assurance increased by 13%,
from 10% in 2000 to 23% of the total in 2009. The percentage of cost of portal
imaging, which had just begun to be used in 2000, increased from 2% to 14% of
the total EBRT cost in 2009. However, overall treatment delivery costs, which
included these two categories, remained relatively stable, at 69% and 73% in
2000 and 2009, respectively.

The department became more efficient over the decade with respect to both
planning treatments for patients and daily radiotherapy treatment delivery.
These costs declined respectively from 31% to 27% and from 56% to 45% of the

Resource costs allocated to EBRT also were very consistent during the decade.
All costs were adjusted to the value of the euro in 2009.

(% of
(% of
Percent of
actual cost increase between 2000 and 2009 expenses
Equipment 33% 32% 195.8%
Material 4% 2% 288%
Space 3% 5% 0%
Hospital overhead 9% 13% 134.4%
Wages 51% 48% 202.6%


“Whether governments remain able and willing to cover cost increases largely
depends on the economical and political climate, both determining the accepted
growth in healthcare budgets,” Lievens and colleagues noted. While they believed
the improved quality of current radiotherapy technology would ultimately improve
patient outcomes, increased investment in radiotherapy treatments required solid
evidence on the added medical effectiveness of new interventions combined with
accurate data on their extra cost, they added.

ESTRO’s HERO project

The European Society for Radiotherapy and Oncology (ESTRO) concurs. It has
initiated an ambitious Health Economics in Radiation Oncology (HERO) project to
develop a knowledge base and a model for health economic evaluation of radiation
oncology in Europe. The project will address the need for radiotherapy,
provision and accessibility of treatments, waiting lists, staffing, cost
accounting, and economic evaluation.

Headed by Lievens and Dr. Cai Grau, a radiation oncologist at the Aarhus
University Hospital in Denmark, an 11-member task force of experts from Europe
and Canada is in the process of conducting an evidence-based survey of the need
for radiotherapy in Europe based on cancer epidemiology within different
European countries. The aim is to assess the actual status of radiotherapy in
Europe through a Web-based information/documentation center that will include
the actual levels of radiation oncology infrastructure, equipment, and staffing
in different European countries. It will include data on the actual treatments
delivered on an annual basis per country.

The cost accounting software model in development will allow users to
calculate cost data at multiple levels: from the European and country level, to
a department level, to a product (specific irradiation treatment) level. It will
benchmark costs at various levels. Its users will be able to evaluate
productivity at the national and department level and estimate the budgetary
impact of evolutions in technology. The model will also have the ability to
perform sensitivity analyses, such as the costs in cases of evidence-based
versus actual radiation oncology practices.

Economic models will also be developed to compute value for the cost of
radiotherapy treatments. Users of these models will be able to evaluate and
compare the cost-effectiveness and cost-utility of different radiotherapy
treatments and techniques, as well as compare radiotherapy treatments with other
oncology treatments that could be substituted. Users will be able to analyze
various cost expenditures to treat a cancer patient, and project them against
data relating to patient outcomes.

Ideally, the data generated by the HERO project will be able to be used for
key policymaking decisions. The HERO Task Force hopes to complete its project
and present its final results in 2013.


No Comments

Sorry, the comment form is closed at this time.