Socio-economics
As part of our work on access to health, Novo Nordisk looks at the socio-economic impact of diabetes, both to enhance our knowledge of how we can change diabetes and to provide information and insight to other stakeholders that have an impact on diabetes.
Our socio-economic impact studies show that the cost of not treating diabetes is much greater than the cost of proper treatment. This is particularly true in the developing world, where 80% of new cases are expected to emerge in the next 20 years. Learn more on International Diabetes Federation's (IDF) homepage. Healthcare spending is rising faster than GDP in many countries. Investing in health at an early stage of diabetes reduces costs to society through fewer complications, lower hospitalisation costs, less nursing of irreversible disabilities, higher productivity and increased quality of life.
Double burden
A fundamental issue in our socio-economic work is how diabetes will impact the developing countries’ ability to grow and develop, which we call the poverty trap model). This illustrates the relationship between drivers or barriers to economic activity in a local economy and how developing countries can be stuck in a Catch 22 reinforced by the cycle of poor health and poverty. Diabetes hits doubly by impeding individual productivity and being costly to treat. Low- and middle-income countries often lack the healthcare infrastructure to handle growing numbers of people with diabetes; lack of awareness is a big problem.
Of two worlds
To gain a better understanding of the economic costs of diabetes care in both the developing and developed world, Novo Nordisk has worked with the University of Southern Denmark to develop a framework for assessing the socio-economic impact of chronic diseases such as diabetes. See study of cost of diabetes in Bangladesh, type 2 diabetes. These studies indicate that as much as 75% of the cost of diabetes may be indirect costs due to complications.
Cutting Danish healthcare bill
In 2006, we published a study showing that better prevention and treatment of diabetes could save up to half of the estimated 13 billion Danish kroner (2.2 billion US dollars) spent in Denmark each year on the treatment of diabetes and its complications. ( Methodology. Type 1 diabetes. Type 2 diabetes.) More example of our ongoing work in this area can be found here.
The rule of halves
The results of our socio-economic work are described in the brochure brochure ‘Changing the Cost and Benefits of Diabetes’. Order hard copies here. It addresses the socio-economic implications of the status quo; what we refer to as the 'rule of halves.' This means only half of all people with diabetes are diagnosed; among those diagnosed only half receive appropriate care; of these only half reach desired treatment targets, i.e., achieve blood sugar control in line with treatment guidelines; and finally only half of these get a successful outcome thus avoid complications. This model can be used to analyse the local diabetes situation in any country.
This page has been reviewed by PricewaterhouseCoopers as part of its assurance of Novo Nordisk’s non-financial reporting. Please refer to Audit and assurance for a full description of the conclusions and the nature of assurance offered.
