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Background: Diabetes Mellitus is a chronic disorder having major economic burden. Its progression and complication increase the medical cost. Objective: To assess the direct cost of illness of diabetic mellitus treatment in Dessie Referral Hospital. Method: Cross-sectional study was conducted on 217 participants from November 30, 2016 to December 31, 2017, and data were extracted from patients registries and analyzed using SPSS version 20. Linear regression was used to assess the statistically significant difference in the cost of treatment of diabetes. The study calculated direct medical and nonmedical costs by multiplying the quantity of each service by their respective unit costs. Results: The total direct medical and non-medical costs per year were 12721.5 USD where 86.5% was direct medical cost and 13.5% was direct non-medical cost. Total cost of oral anti-hyperglycemic agents was 1934.68 USD while the cost of illness of diabetic patients on insulin and syringes was 2962.6 USD and 751.16 USD respectively. Age, complication and comorbidity had a statistically significant (p < 0.05) effect on cost of illness. Conclusion: Diabetes mellitus was an expensive illness and the direct medical costs constituted major segment in the treatment of illness, and treatment with insulin costs 1.5 times higher as compared with oral hypoglycemic agents. Diabetes mellitus cost burden has been accelerated due to its complications by 1.6. In view of the increasing global prevalence of diabetes, information from cost-of-illness studies should be used to increase awareness and for allocation of resources. Awareness of economic burden drives the urgent need for increased investments in the prevention and management of diabetes.

Economic Assessment of Direct Cost of Illness of Diabetes Mellitus at Dessie Referral Hospital, North East Ethiopia