Indirect costs of healthcare describe which concept?

• A. Loss of productivity from illness
• B. Nonmedical costs like transportation
• C. Pain and suffering
• D. Hospitalization costs

Answer: (A)

Indirect costs are the economic losses that come from illness but aren’t the price of medical care itself. Loss of productivity from illness fits this because it reflects missed work, reduced work capacity, or lost earnings that result from being sick, not from paying for a hospital stay or a doctor visit. It shows the broader societal and economic impact of illness beyond medical bills.

Nonmedical costs like transportation are considered direct nonmedical costs, since they are out-of-pocket expenses tied to seeking care. Pain and suffering are intangible costs, which are difficult to quantify in dollars. Hospitalization costs are direct medical costs, representing the actual medical services received.