Table 3.

Direct and indirect costs.

Direct Costs relate to and are sensitive to ‘per patient activity’. In most cases, these are variable costs that increase proportionally to the number of patients within the system.

Indirect Costs are not patient number sensitive but nevertheless are required by an MEA. These often relate to set up costs and infrastructure that would be required for the system to run. Whilst most cases are fixed costs, there are some variable costs contributing to this.