Tackling diabetes is a daunting task. But it has an economic impact too. It could cost Hong Kong HK$2.83 billion in total in managing Type 2 diabetes this year, according to a research by the Chinese University of Hong Kong (CUHK) and the United Christian Hospital.

Of the total expenses, HK$2.44 billion was direct medical costs. It was equivalent to 3.9 per cent in total government healthcare expenditure and 6.4 per cent in Hospital Authority expenditure.

The rest was indirect costs, such as loss of productivity and early retirement due to the disease.

The research assessed the economic impact of Type 2 diabetes on 147 patients at the United Christian Hospital and the local healthcare system.

The 147 patients were assessed one year from time of interview in 2004, with average age at 60 something and the youngest age at 29.

The research showed costs incurred by Type 2 diabetes created a big financial burden on patients and the government.

We estimated the total cost of diabetes management at HK$2.83 billion in 2004. The figure could be applied to this year as well, because the overall direct medical costs this year was approximately the same as in 2004, said Kenneth Lee, Professor of CUHK's School of Pharmacy, Faculty of Medicine.

The research showed the government had to bear about 90 per cent of direct medical costs of diabetes.

On average each patient had to pay more than HK$13,000 annually for medical treatment, with specialist outpatient clinic visits and hospitalization as the major cost drivers (82 per cent).

The research also showed the direct medical costs would be increased substantially if there were complications.