King's College London

A study led by Professor Martin Weale, from King’s College London, has produced a framework for quantifying the effects of preventative health interventions on national output and productivity.

Prof Weale’s study, published in the journal Review of Income and Wealth, highlighted two key approaches to measuring the impact of health interventions: integrating them into mainstream national accounts using reservation prices and assessing outcomes through a satellite health account focused on Quality-Adjusted Life Years (QALYs).

The UK’s Diabetes Prevention Programme (DPP), which aims to reduce the risk of type-2 diabetes through lifestyle interventions, was used as a case study by Prof Weale. His findings indicated that while the programme’s contribution to health service output was modest, its inclusion in national accounts offered a more comprehensive view of public health value.

The study showed the DPP’s impact could be measured by comparing its actual cost to a theoretical ‘reservation price’ based on health benefits. This method showed a small but meaningful reduction in health service prices and an increase in output volume.

When evaluated through inclusion in a satellite account, the DPP’s impact was measured by the increase in patient QALYs—a metric combining lifespan and quality of life. The study estimated the programme generated £1.2million in benefits per 100,000 referrals, with a net gain after costs of £1.04million.

In mainstream national accounts, Prof Weale showed the DPP contributed a 0.02 per cent increase in health service output. In the satellite account, the rise was slightly lower at 0.003 per cent. While these figures were small, Prof Weale said they underscored the importance of accounting for preventative measures in economic evaluations.

The research also addressed broader implications for public health policy. By quantifying the economic value of preventative programmes like the DPP, policymakers would be able to better assess their cost-effectiveness and allocate resources efficiently.

Prof Weale added that, while the DPP’s direct impact on GDP was limited, its benefits—such as reduced long-term healthcare costs and improved quality of life— were significant for societal well-being.