Sunday, December 8, 2024

Fully Loaded Microcosting of CGP/Tumor WGS Shows Euro 2500-3500 Range

I've seen academic papers on microcosting of genomic testing that ignored or under-weighted fully loaded costs.   I once heard, "We weren't sure how to assign overhead so we ignored it in our publication."  Ouch.

See a Swedish paper on "fully burdened cost"   for standard of care CGP as well as WGS-based tumor testing (e.g. at 90X depth).  Note that I find this very confusing, because they state in one place the costs are "fully burdened" and in other places, costs for overhead were "excluded."

Costs come into the range of €2500 for SOC and €3500 for WGS (e.g. $3000 and $4000 range).   Actual costs (including regulatory, marketing, medicolegal) may be higher.   But this clearly sets a benchmark that the lowball prices that CMS has sometimes proposed reflect a poor grasp of total costs.

See Thangavelu et al., J Medical Economics, here:

https://www.tandfonline.com/doi/full/10.1080/13696998.2024.2387515#abstract