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March 9, 2001,
12:00 p.m. In this paper, we will examine indirect costs (i.e., workloss and productivity costs) of employee illness from the employer's perspective. We provide a conceptual framework to help employers consider alternative views of the assessing indirect costs and valuing health care they purchase. First, we discuss the matter of perspective and how an employer should view and assess indirect costs. We briefly review current models of measuring indirect costs and we critique these models. Then we introduce a simple, conceptual framework based on the ideas of health capital and labor productivity, and lay out the effects of health investment on indirect costs, taking into account what employees desire and what employers can provide. Finally, we offer an agenda for further research.
Biosketch: Prior to joining Merck, Dr. Murray was the Director of Research for
US Quality Algorithms and Assistant Vice-President for Quality Improvment
at US. Healthcare. He was responsible for the development of evaluation
models for assessing quality of care for US Healthcare providers. Dr.
Murray was one of the co-developers of the USQA Hospital Monitor and
was also responsible for the evaluation of US Healthcare's disease management
programs.
Dr. Murray holds a Ph.D. in Decision Sciences and Operations Research
from the University of Wisconsin-Madison as well as a Masters degree
in Information Systems.
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