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Presentation

Session: Posters
Room: TBA
Time: Fri 13:00-14:30

Presenter: Jean Spinks (Monash University. Centre for Health Economics)

Abstract

Background: Complementary and alternative medicine (CAM) is an increasingly popular form of self-care. In Australia, there is evidence to suggest that expenditure on CAM exceeds that of the total patient copayment contributions for Pharmaceutical Benefit Scheme (PBS) subsidised prescription medications. Although there are aggregate data available on the high levels of expenditure on CAM, there is limited information on the relationship between CAM use and other (conventional) medicine use.

Aim: This study quantifies the relationship between the use of CAM practitioners, conventional medicine practitioners and prescription medicines in people with chronic conditions, taking into consideration relevant demographic and socioeconomic factors. It is hypothesised that there is a positive correlation between CAM use and the use of conventional medicine practitioners and prescription medicine.

Data and Methods: Data are pooled from the Australian National Health Surveys of 2001, 2004/05 and 2007/08. The analysis models a system of equations designed to capture the interrelationships between illness (particularly type-2 diabetes and cardiovascular disease), the use of CAM and conventional medicine. The model includes explanatory variables that allow identification of the effects of a range of factors on the use of the different types of therapies, including the role of a person’s socioeconomic and health status. Of particular interest is any correlation between private health insurance coverage and the utilisation of CAM, and whether CAM use would increase if coverage of CAM by private insurers increases, and which sections of society this will impact upon. By estimating a system of equations, we are also able to test the hypothesis of co-utilisation of both conventional and alternative medicines, allowing for correlation between the unobservables that influence both variables.

Results: Socio-economic characteristics of individuals within geographic areas impact on the relationship between CAM use and conventional medicine, through an income mediated effect. Education levels are also likely to play an important role. This has important implications for health policy research as providing health care for people living with chronic conditions is increasing important due to the increasing prevalence of diseases which can be controlled with lifestyle interventions.

Conclusion: Given the high levels of expenditure on CAM, it is important to better understand the determinants of spending on this modality as compared to conventional medicine within different societal groups, location, gender and access to services. The policy implications of this are wide, identifying the direction of resources and the decision making that occurs regarding the choice of health care and participation in private health insurance funds.

Key Terms

complementary and alternative medicine; conventional medicine use; chronic conditions; healthcare utilisation

Authors:

Jean Spinks (Monash University . Centre for Health Economics) and Preety Srivastava (Monash University. Centre for Health Economics)

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