Economic Burden of COVID-19 in West Azerbaijan, Iran: A Societal Perspective

Soheila  Norouzi; Siamak  Aghlmand; Ahmad  Faramarzi

doi:10.18502/jimc.v8i2.17697

Soheila Norouzi Department of Health Economics and Management, School of Public Health, Urmia University of Medical Sciences, Urmia, Iran
Siamak Aghlmand Department of Health Economics and Management, School of Public Health, Urmia University of Medical Sciences, Urmia, Iran
Ahmad Faramarzi Department of Health Economics and Management, School of Public Health, Urmia University of Medical Sciences, Urmia, Iran

DOI: https://doi.org/10.18502/jimc.v8i2.17697

Keywords: COVID-19, Economic Recession, Financial Stress, Iran

Abstract

Background: The COVID-19 pandemic has resulted in massive loss of life and an unprecedented economic crisis, with far-reaching social impacts. This study aimed to estimate the economic burden of Coronavirus from a societal perspective in Iran.

Methods: This cross-sectional study was conducted between March 20, 2020 to March 19, 2021. To calculate the direct cost associated with COVID-19, a bottom-up approach was used with a record of 264 on the prevalence-based method and using the human capital approach. All the costs hospitalized patients. Indirect costs related to COVID-19 patients were estimated based were reported as US Dollars, using the exchange rate ($US 1=172,430 Rials) in 2020 and a 3% discount rate.

Results: From March 20, 2020 to March 19, 2021, this study included 467,883 patients with COVID-19 and 5,806 deaths in West Azerbaijan. Due to the economic burden, COVID-19 was approximately estimated at $647.37 million ($1,384 per patient), of which $425.32 million was caused by lost productivity and $222.05 million by direct costs. The results show that the mean cost of direct medical services was $1415 in the ICU ward and $426 in the general ward.

Conclusion: The findings of this study underscore the substantial economic impact of the COVID-19 pandemic, particularly in developing countries. Notably, the economic burden primarily arises from indirect costs, such as lost productivity due to premature mortality and morbidity. This investigation revealed that medicine and consumables account for 50% of the direct medical costs associated with COVID-19.