An economic perspective on neonatal infection prevention: 5 questions for the NeoIPC Health Economics team

02 Oct, 2025

The Swiss Tropical and Public Health Institute (Swiss TPH), a NeoIPC partner, has a long-standing interest and track record in evaluating the equity impact of health interventions, bringing their expertise in health economics to the forefront. Within the NeoIPC project, Swiss TPH leads the economic evaluation of optimised Kangaroo Care, which is the focus of the NeoDeco study.

We recently spoke with Fabrizio Tediosi and Giovanfrancesco Ferrari, who shared their perspective on how health economics can inform smarter, more equitable decisions in neonatal care, and why understanding the value of interventions like kangaroo care is crucial for both patients and health systems.

What is health economics, and what does it help us understand in the context of healthcare? 

Health economics examines how resources in healthcare (such as time, money, personnel and equipment) are used and the value society gains from them. It goes beyond simply measuring costs, it considers the outcomes those resources produce. Rather than asking “How much does this intervention cost?”, health economics asks “What health benefits does it bring for patients, families, and the healthcare system for every euro spent?” .

In neonatal care, where resources are often limited and decisions must be made quickly, health economics provides a structured way to weigh the costs of an intervention against the health gains it delivers. This kind of analysis helps healthcare professionals and policymakers make choices that maximise impact, ensuring vulnerable babies receive the best possible care while using resources efficiently and sustainably.

What is the main objective of the cost analysis in the NeoDeco study, and why is it important for evaluating neonatal infection prevention strategies? 

The goal of the cost analysis in NeoDeco is to understand whether optimised Kangaroo Care, when done in a structured, consistent and supported way, is not only clinically effective, but also cost-effective as a method for preventing infections in newborns.

Infections in neonatal intensive care units (NICUs) are a major risk for pre-term infants. They can lead to longer hospital stays, more intensive treatment, and, in the worst cases, long-term complications or even death. If optimised Kangaroo Care can help reduce these infections, it could lead to better outcomes for babies and lower healthcare costs.  

By looking at both the costs and health benefits, the analysis can show whether this approach is a smart investment for healthcare systems, particularly those that have limited resources and are seeking interventions that offer long-term value.

How are you measuring and calculating the costs of implementing optimised Kangaroo Care across the study sites? 

We’re estimating the costs of optimised Kangaroo Care by using data on reimbursement tariffs that hospitals use to calculate the cost of a patient’s stay. These tariffs give a comprehensive picture of the resources involved in a hospital admission (such as staff time, equipment and overheads) without us having to measure each item separately.

By comparing the costs for pre-term infants receiving optimised Kangaroo Care with those receiving standard care, we can see whether the intervention leads to savings, for example through shorter stays or fewer complications. When we combine the costs and the health benefits, we can assess whether this approach is a good value for money.

How can health economic analyses help hospital leaders and health authorities see the long-term benefits of introducing Kangaroo Care to reduce neonatal infections? 

Health economic analysis can demonstrate whether optimised Kangaroo Care can improve neonatal outcomes while using resources more efficiently. Although many clinicians acknowledge its benefits, hospital and health system decision-makers often require robust evidence to justify investment in new practices.

If we can show that Kangaroo Care not only improves health outcomes but also reduces costs by preventing infections and shortening hospital stays, it represents an approach that benefits both newborns and the health system.

For hospital leaders, this evidence supports the allocation of resources and staff training necessary for effective implementation. For health authorities, particularly in resource-limited settings, it provides a strong, cost-conscious rationale for scaling the practice.

Robust economic evidence can also drive policy adoption, integrating Kangaroo Care into national or regional neonatal care standards and promoting sustainable improvements in child health.

What aspect of the NeoDeco study excites you the most?

What’s most exciting is the opportunity to bridge the gap between clinical research and real-world practice. We already know that Kangaroo Care can have a powerful effect on the health and wellbeing of newborns and their families. Through NeoIPC and NeoDeco, we’re now building the economic case to help it reach more babies, not just in high-resource settings, but also in places where every euro and every minute of care counts.

We anticipate that this work will contribute to establishing optimised Kangaroo Care as a routine component of NICU practice, supported by health systems, not only as an ethically appropriate intervention but also as a strategically sound and sustainable approach.