Alcohol’s hidden costs: Can we afford this burden?

Alcohol

Heikki Luoto & Emma Kajander
Published 30 Oct 2024

Alcohol is a major contributor to premature deaths across Finland and Europe. While much of the focus often lies on deaths directly caused by alcohol, these represent just the tip of the iceberg. According to the World Health Organization (WHO), alcohol is a contributing factor in over 200 diseases and health conditions, which significantly increase the burden of disease and injuries on society. This article, therefore, explores the broader impact of alcohol-related diseases and examines the true societal cost of this burden.

A recent review conducted by the Finnish Association for Substance Abuse Prevention (EHYT) and the Finnish Consulting Group (FCG) provides further insights by examining the number of life years lost due to alcohol in Finland. The review takes into account both direct and indirect deaths and offers a comprehensive analysis of alcohol’s significant contribution to cancers, cardiovascular diseases, and suicides. Notably, the findings reveal that over 37,000 life years are prematurely lost each year in Finland due to alcohol, with more than 12,500 of these resulting from indirect alcohol-related deaths.

Alcohol’s Role in Premature Mortality

Alcohol is estimated to account for 5 per cent of all deaths in Finland, contributing to 8.8 per cent of all premature life years lost (PYLL) and 7.3 per cent of all disability-adjusted life years (DALY). Its impact is especially significant when considering preventable premature life years lost, where alcohol accounts for a staggering 22 per cent of preventable PYLL. This underscores the major role alcohol plays in preventable health conditions and early mortality.

The loss of life years due to alcohol represents a substantial economic and human cost to society. Not only do these lost years affect citizens’ ability to work and maintain functional capacity, but they also lead to a decline in productivity as human capital is diminished. Additionally, the strain on healthcare systems intensifies as the increased demand for medical services drives up healthcare costs. Ultimately, the broader impact is felt across the economy, compounding both the financial burden and societal consequences.

Alcohol-Related Disease Burden Underestimated

In 2013, the Finnish Institute for Health and Welfare (THL) estimated the societal costs of alcohol to healthcare in Finland at 109 million euros. However, when compared to Sweden, where alcohol-related healthcare costs were estimated at around 660 million euros in 2017, this figure seems surprisingly low. Although Sweden has a larger population, alcohol-related harms are notably higher in Finland. For instance, the alcohol-related death rate in Finland stands at 29.52 per 100,000 inhabitants per year—nearly double that of Sweden, where the rate is 16.91 per 100,000.

To put this into context, calculations based on Finland’s total public healthcare costs of approximately €12.9 billion in 2021 suggest that if alcohol’s impact on healthcare costs is proportional, the estimated cost attributable to alcohol would be €648 million in 2021. However, a more accurate reflection of the true burden of alcohol-related diseases is captured in the loss of disability-adjusted life years (DALYs). When using this measure, the costs attributable to alcohol rise to €947 million. Moreover, when the impact of alcohol on all prematurely lost life years (PYLL) is accounted for, the healthcare costs linked to alcohol surge to an estimated €1.141 billion per year.

In Conclusion

The review underscores that the societal and healthcare costs of alcohol are significantly higher than previously estimated. It is, therefore, crucial that policy decisions are based on accurate data. Finland should undertake a new, comprehensive assessment of alcohol’s total cost to both healthcare and society.

 

The article is written by

Heikki Luoto Development Manager, EHYT Finnish Association for Substance Abuse Prevention

and

Emma Kajander, Medical Expert, FCG Finnish Consulting Group

on the request of PopNAD

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