Otago Exercise Program (general population)
Health Care: Falls Prevention for Older Adults
Benefit-cost methods last updated December 2023. Literature review updated January 2018.
The Otago Exercise Program is an individually tailored, home-based, strength and balance retraining program for community-dwelling older adults. The goal of the Otago Exercise Program is to prevent falls. The program is typically provided by a physiotherapist who teaches the exercise program to participants in their homes and provides a “prescription” for the exercise program to be independently practiced three times per week. The exercises are tailored to participants’ needs and capabilities and consist of strength and balance exercises using ankle cuff weights. Physiotherapists typically provide four home visits over the first two months in the program and make monthly follow up calls to participants through the next four months.
This analysis includes participants from a general population of community-dwelling older adults. All included studies took place in New Zealand. We conducted a separate analysis on the Otago Exercise Program for community-dwelling older adults at high risk for falls.
ALL |
BENEFIT-COST | META-ANALYSIS |
CITATIONS |
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For an overview of WSIPP's Benefit-Cost Model, please see this guide. The estimates shown are present value, life cycle benefits and costs. All dollars are expressed in the base year chosen for this analysis (2022). The chance the benefits exceed the costs are derived from a Monte Carlo risk analysis. The details on this, as well as the economic discount rates and other relevant parameters are described in our Technical Documentation.
Benefit-Cost Summary Statistics Per Participant |
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Taxpayers |
$579 |
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Benefits minus costs |
$3,498 |
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Participants |
$73 |
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Benefit to cost ratio |
$5.73 |
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Others |
$90 |
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Chance the program will produce |
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Indirect |
$3,495 |
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benefits greater than the costs |
100% |
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Total benefits |
$4,237 |
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Net program cost |
($740) |
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Benefits minus cost |
$3,498 |
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1In addition to the outcomes measured in the meta-analysis table, WSIPP measures benefits and costs estimated from other outcomes associated with those reported in the evaluation literature. For example, empirical research demonstrates that high school graduation leads to reduced crime. These associated measures provide a more complete picture of the detailed costs and benefits of the program.
2“Others” includes benefits to people other than taxpayers and participants. Depending on the program, it could include reductions in crime victimization, the economic benefits from a more educated workforce, and the benefits from employer-paid health insurance.
3“Indirect benefits” includes estimates of the net changes in the value of a statistical life and net changes in the deadweight costs of taxation.
Detailed Monetary Benefit Estimates Per Participant |
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Taxpayers |
Participants |
Others2 |
Indirect3 |
Total
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Falls |
Health care associated with falls |
$579 |
$73 |
$90 |
$289 |
$1,032 |
Mortality associated with falls |
$0 |
$0 |
$0 |
$3,575 |
$3,575 |
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Program cost |
Adjustment for deadweight cost of program |
$0 |
$0 |
$0 |
($370) |
($370) |
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Totals |
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$579 |
$73 |
$90 |
$3,495 |
$4,237 |
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Populations - Primary |
Earnings |
General population All people |
Falls |
Older adults Adults age 65 or over |
For more information on populations see the
Technical Documentation
Detailed Annual Cost Estimates Per Participant |
Program costs |
$627 |
2016 |
Present value of net program costs (in 2022 dollars) |
($740) |
Comparison costs |
$0 |
2016 |
Cost range (+ or -) |
20% |
Per-participant cost estimates are based on weighted average program costs in the included studies. We estimate provider hours including home visiting hours, transportation, telephone contacts, and training hours; apply the 2016 mean hourly wage estimate for Washington State reported by the Bureau of Labor Statistics (retrieved March 2018) for physical therapists; and increase wages by a factor of 1.441 to account for the cost of employee benefits. The included studies averaged 4.5 home visiting hours. We include four hours of travel time and 0.75 hours of telephone follow-up, per participant. We include a $35 online training fee, three hours of provider time to complete the training, and assume that each trained provider serves 20 participants. We also include the cost of a single set of ankle cuff weights for each participant. Information on provider types, transportation, and telephone follow up retrieved from Carande-Kulis, V., Stevens, J.A., Florence, C.S., Beattie, B.L., & Arias, I. (2015). A cost–benefit analysis of three older adult fall prevention interventions. Journal of Safety Research, 52, 65-70. Information on online training costs and ankle cuff weights provided by Carolyn Ham at the Washington State Department of Health, March 2018.
The figures shown are estimates of the costs to implement programs in Washington. The comparison group costs reflect either no treatment or treatment as usual, depending on how effect sizes were calculated in the meta-analysis. The cost range reported above reflects potential variation or uncertainty in the cost estimate; more detail can be found in our Technical Documentation.
Benefits Minus Costs |
Benefits by Perspective |
Taxpayer Benefits by Source of Value |
Benefits Minus Costs Over Time (Cumulative Discounted Dollars) |
The graph above illustrates the estimated cumulative net benefits per-participant for the first fifty years beyond the initial investment in the program. We present these cash flows in discounted dollars. If the dollars are negative (bars below $0 line), the cumulative benefits do not outweigh the cost of the program up to that point in time. The program breaks even when the dollars reach $0. At this point, the total benefits to participants, taxpayers, and others, are equal to the cost of the program. If the dollars are above $0, the benefits of the program exceed the initial investment. |
Benefits by Perspective Over Time (Cumulative Discounted Dollars) |
The graph above illustrates the breakdown of the estimated cumulative benefits (not including program costs) per-participant for the first fifty years beyond the initial investment in the program. These cash flows provide a breakdown of the classification of dollars over time into four perspectives: taxpayer, participant, others, and indirect. “Taxpayers” includes expected savings to government and expected increases in tax revenue. “Participants” includes expected increases in earnings and expenditures for items such as health care and college tuition. “Others” includes benefits to people other than taxpayers and participants. Depending on the program, it could include reductions in crime victimization, the economic benefits from a more educated workforce, and the benefits from employer-paid health insurance. “Indirect benefits” includes estimates of the changes in the value of a statistical life and changes in the deadweight costs of taxation. If a section of the bar is below the $0 line, the program is creating a negative benefit, meaning a loss of value from that perspective. |
Taxpayer Benefits by Source of Value Over Time (Cumulative Discounted Dollars) |
Citations Used in the Meta-Analysis
Campbell, A.J., Robertson, M.C., Gardner, M.M., Norton, R.N., Tilyard, M.W., & Buchner, D.M. (1997). Randomised controlled trial of a general practice programme of home based exercise to prevent falls in elderly women. Bmj: British Medical Journal, 315 (7115), 1065-9.
Robertson, M.C., Devlin, N., Gardner, M.M., & Campbell, A.J. (2001). Effectiveness and economic evaluation of a nurse delivered home exercise programme to prevent falls. 1: Randomised controlled trial. Bmj, 322 (7288), 697.