Cigarette smoking and the cost of hospital and physician care

Smoking is widely known to affect health adversely. The consequent cost to the publicly funded Canadian health-care system is a matter of considerable policy interest. We consider two core elements of health care: hospitals and physicians. This study, unlike previous Canadian studies, uses the econometric approach to assess these costs. The availability of the 1995 Newfoundland Adult Health Survey makes that application feasible. That survey covers thousands of individuals, providing a snapshot of their socio-demographic, economic, and health characteristics and is linked to the respondents' medical utilization records over a seven-year period. It is estimated that over 12 percent of hospital utilization and approximately 7 percent of visits to physicians are attributable to smoking. The associated annual monetary costs are considerable, approximately $110 to $140 per capita.