Economic Evaluation of Fluoridation of Water Supply to Prevent Dental Caries in Remote Communities in Australia: A Public Health Investment Analysis

Abstract

Public health investment planning is a crucial part of health planning. This study evaluates the economic cost-benefit of investing on fluoridation of the water supply in a small remote community in Australia to prevent dental caries. The results indicate that the investment on fluoridation generates an Internal Rate of Return (IRR) of around 4-5% with a pay-back period of 12 years and a positive net present value (NPV) of $ 94,469 at 5% discount rate which is attractive for public investment. The study also reveals that the fluoridation of the water supply in small remote communities with a population of more than 1000 is an economically viable investment. This study supports a policy of investing on fluoridation of water supplies in remote communities with population of more than 1000 people. The public health investment analysis methodology adopted in this study and the findings will be of great interest in making decisions on public financing of small-scale public health investment.