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A Lifetime Individual Sampling Model 
for Heroin Use and Treatment 
Evaluation in Australia 
Nagesh Shukla 
Van Hoang 
Marian Shahanan 
Alison Ritter 
Vu Lam Cao 
Pascal Perez 
September 2014
Introduction 
• Australian federal and state governments spend about AUD 1.7b pa in prevention, 
treatment, harm reduction and law enforcement to combat illicit drugs. 
• There is an increasing pressure from both the government and the public to know 
– whether the current spending is optimal; and/or 
– what needs to change to increase the benefits of spending. 
• This is particularly important for complicated policies where there are many 
external costs and benefits, and as such; there are diverse views about the value 
of the projects. 
• The aim of this study is to 
– assess the net social benefit of current heroin treatment strategies, and 
– compare different combinations of treatment alternatives through modelled scenarios 
2
Conceptual model 
3 
• Initial Population with over 97,000 heroin 
users and heroin abstainers. 
• Each individual is transitioned from one 
health state to others using predefined 
(individual based) state transition 
probabilities. 
• Time step is defined as the length of stay in 
each state, individually driven. 
• Population is evolved and added a sub-population 
of new drug initiators each year. 
• Net Social Benefit is computed based on the 
outcomes of the simulation model. 
• Main data sources: 
– Australia Treatment Outcome Study (ATO) Dataset 
– MIX Study Dataset 
– National Opioid Pharmacotherapy Statistic Annual 
Data (NOPSAD) 
– Alcohol and Other Drug Treatment Services National 
Minimum Data Set (AODTS-NMDS treatment data)
Model Components 
4 
Initial 
Population 
States 
Transition 
Time 
State 
Transitions 
Costs and 
Outcomes 
Net Social 
Benefit
Model Components (cont.) 
Initial Population 
• Is estimated as the current NSW heroin using population. 
• Over 97,000 heroin users and heroin abstainers. 
• Each year, a sub-population of new initiators is added to include new drug users. 
• Each individual in the initial population has the characteristics as: 
– Age: starting with 18 to 60 years spread 
– Gender: male or female 
– State: current state 
– Opioid use history 
– Incarceration history 
– Treatment history 
• The initial population is evolved over the lifetime
Model Components (cont.) 
States 
• Model has a set of mutually exclusive states which 
are: 
– large enough to capture the complexity of the treatment 
process and 
– low enough to ensure the resulting model is tractable 
and does not overburden the model with very detailed 
and specific data requirements. 
• There are 2 main types of states: 
– Drug use state: S1, S2, S3 
– Treatment states: S4, S5, S6 
• The model also considers 3 important locations 
(stages) in the drug using individual’s trajectory: 
– In Community: S1 to S6 
– In Prison: S8, S9, S10 
– Death Stage: S11, S12 
• There is only 1 treatment state in the prison stage 
due to the insufficient in-prison treatment data. 
State Name Stage 
Abstinence (S1) COMMUNITY 
Irregular Use (S2) COMMUNITY 
No Treatment & Use (S3) COMMUNITY 
Withdrawal (S4) COMMUNITY 
Residential Rehabilitation (S5) COMMUNITY 
Pharmacotherapy (OTP) (S6) COMMUNITY 
Counselling Only (S7) COMMUNITY 
Abstinence (S8) PRISON 
No Treatment & Use (S9) PRISON 
Treatment (S10) PRISON 
Drug Related Death or 60+ Years 
DEATH 
Old (S11) 
Non-Drug Related Death (S12) DEATH
Model Components (cont.) 
Transition Time 
• Is heterogeneous ‘time to transition’ for each individual in the model based on 
his/her attributes such as age, sex, treatment history, and state. 
• Is defined as the length of stay (LOS) in each state, individually driven, stratified by 
age, sex, history. 
• Free from traditional fixed time steps for individual movements across states as 
using continuous function for individual’s length of stay determination
Model Components (cont.) 
State Transition 
• After finishing assigned LOS in a state, individuals transition to other states based 
on transition probability functions dependent upon the individuals’ attributes. 
• There are 2 types of transition functions in the model: 
– An equation: empirically derived, specifies the probability based on individual’s characteristics and 
history of the transition. 
– A probability distribution of the likelihood of transition: empirically derived from summary data, 
based on a known distribution of an event 
• Once a distribution function is established, Monte Carlo sampling is used to 
choose transition probabilities.
Model Components (cont.) 
Cost & Outcomes 
• During running through cycles, the model will accrue costs and outcomes (also 
referred to as rewards) within each cycle. 
• Main categories of costs in the model: 
– Treatment costs: per days and transition 
– Crime costs: including social costs, penalty, and police costs 
– Life-years: saved, or lost 
– Other health care utilization (i.e. hospital, emergency department visits, and treatment for specific 
diseases such as Hepatitis B and C) 
– Economic impact on family burden event 
• Main categories of benefits in the model: 
– Earnings due to returning to work after successful treatments 
– Cost-savings to the government and society due to successful treatments 
(e.g. reduction of crime and health care utilization).
Model Components (cont.) 
Net Social Benefit 
• Once the costs and benefits have been calculated, the criterion for assessing the 
overall efficiency of an intervention is the Net Social Benefit (NSB). 
푁푆퐵 = 
푇 
푡=1 
퐵푡 − 퐶푡 
1 + 푟 푡−1 
– 퐵푡 are benefits in year t, 
– 퐶푡 are costs in year t, 
– r is the discount rate, and 
– T is the duration in years under consideration. 
• The NSB is the sum of the present value of all benefits minus the sum of the 
present value of all costs. 
• A policy is potentially worthwhile if NSB is > 0.
Model Architecture 
Java (Eclipse) 
PostgreSQL 
(Intermediate Data) 
11 
State 
Transition 
Algorithm 
Cost/Benefit 
Estimation 
Population 
Generator 
PostgreSQL 
(Output Data) 
PostgreSQL 
(Source Data) 
Java Swing 
JDBC 
Graphic User Interface
Work In Progress Results 
• An initial prototype simulation model has built, that creates the initial 
heroin using population, new heroin initiators, and transitions to different 
states. 
• Developing user interface to support users to interact with the model to 
design and run different scenarios. 
• In the process of feeding the model with validated transition functions, 
per unit/event costs, and benefits. 
• The final step in the modelling will be to validate whether the model is 
consistent with heroin user career trajectory. 
12
User interface
Baseline Summary
Prof. Pascal Perez 
Research Director| SMART Infrastructure Facility 
University of Wollongong NSW 2522 
P: +61 2 4252 8238 | F: +61 2 4298 1489 | M: +61 432 435 192 
E: pascal_perez@uow.edu.au | W: http://smart.uow.edu.au/staff/UOW114981.html 
THANK YOU

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A Lifetime Individual Sampling Model for Heroin Use and Treatment Evaluation in Australia

  • 1. A Lifetime Individual Sampling Model for Heroin Use and Treatment Evaluation in Australia Nagesh Shukla Van Hoang Marian Shahanan Alison Ritter Vu Lam Cao Pascal Perez September 2014
  • 2. Introduction • Australian federal and state governments spend about AUD 1.7b pa in prevention, treatment, harm reduction and law enforcement to combat illicit drugs. • There is an increasing pressure from both the government and the public to know – whether the current spending is optimal; and/or – what needs to change to increase the benefits of spending. • This is particularly important for complicated policies where there are many external costs and benefits, and as such; there are diverse views about the value of the projects. • The aim of this study is to – assess the net social benefit of current heroin treatment strategies, and – compare different combinations of treatment alternatives through modelled scenarios 2
  • 3. Conceptual model 3 • Initial Population with over 97,000 heroin users and heroin abstainers. • Each individual is transitioned from one health state to others using predefined (individual based) state transition probabilities. • Time step is defined as the length of stay in each state, individually driven. • Population is evolved and added a sub-population of new drug initiators each year. • Net Social Benefit is computed based on the outcomes of the simulation model. • Main data sources: – Australia Treatment Outcome Study (ATO) Dataset – MIX Study Dataset – National Opioid Pharmacotherapy Statistic Annual Data (NOPSAD) – Alcohol and Other Drug Treatment Services National Minimum Data Set (AODTS-NMDS treatment data)
  • 4. Model Components 4 Initial Population States Transition Time State Transitions Costs and Outcomes Net Social Benefit
  • 5. Model Components (cont.) Initial Population • Is estimated as the current NSW heroin using population. • Over 97,000 heroin users and heroin abstainers. • Each year, a sub-population of new initiators is added to include new drug users. • Each individual in the initial population has the characteristics as: – Age: starting with 18 to 60 years spread – Gender: male or female – State: current state – Opioid use history – Incarceration history – Treatment history • The initial population is evolved over the lifetime
  • 6. Model Components (cont.) States • Model has a set of mutually exclusive states which are: – large enough to capture the complexity of the treatment process and – low enough to ensure the resulting model is tractable and does not overburden the model with very detailed and specific data requirements. • There are 2 main types of states: – Drug use state: S1, S2, S3 – Treatment states: S4, S5, S6 • The model also considers 3 important locations (stages) in the drug using individual’s trajectory: – In Community: S1 to S6 – In Prison: S8, S9, S10 – Death Stage: S11, S12 • There is only 1 treatment state in the prison stage due to the insufficient in-prison treatment data. State Name Stage Abstinence (S1) COMMUNITY Irregular Use (S2) COMMUNITY No Treatment & Use (S3) COMMUNITY Withdrawal (S4) COMMUNITY Residential Rehabilitation (S5) COMMUNITY Pharmacotherapy (OTP) (S6) COMMUNITY Counselling Only (S7) COMMUNITY Abstinence (S8) PRISON No Treatment & Use (S9) PRISON Treatment (S10) PRISON Drug Related Death or 60+ Years DEATH Old (S11) Non-Drug Related Death (S12) DEATH
  • 7. Model Components (cont.) Transition Time • Is heterogeneous ‘time to transition’ for each individual in the model based on his/her attributes such as age, sex, treatment history, and state. • Is defined as the length of stay (LOS) in each state, individually driven, stratified by age, sex, history. • Free from traditional fixed time steps for individual movements across states as using continuous function for individual’s length of stay determination
  • 8. Model Components (cont.) State Transition • After finishing assigned LOS in a state, individuals transition to other states based on transition probability functions dependent upon the individuals’ attributes. • There are 2 types of transition functions in the model: – An equation: empirically derived, specifies the probability based on individual’s characteristics and history of the transition. – A probability distribution of the likelihood of transition: empirically derived from summary data, based on a known distribution of an event • Once a distribution function is established, Monte Carlo sampling is used to choose transition probabilities.
  • 9. Model Components (cont.) Cost & Outcomes • During running through cycles, the model will accrue costs and outcomes (also referred to as rewards) within each cycle. • Main categories of costs in the model: – Treatment costs: per days and transition – Crime costs: including social costs, penalty, and police costs – Life-years: saved, or lost – Other health care utilization (i.e. hospital, emergency department visits, and treatment for specific diseases such as Hepatitis B and C) – Economic impact on family burden event • Main categories of benefits in the model: – Earnings due to returning to work after successful treatments – Cost-savings to the government and society due to successful treatments (e.g. reduction of crime and health care utilization).
  • 10. Model Components (cont.) Net Social Benefit • Once the costs and benefits have been calculated, the criterion for assessing the overall efficiency of an intervention is the Net Social Benefit (NSB). 푁푆퐵 = 푇 푡=1 퐵푡 − 퐶푡 1 + 푟 푡−1 – 퐵푡 are benefits in year t, – 퐶푡 are costs in year t, – r is the discount rate, and – T is the duration in years under consideration. • The NSB is the sum of the present value of all benefits minus the sum of the present value of all costs. • A policy is potentially worthwhile if NSB is > 0.
  • 11. Model Architecture Java (Eclipse) PostgreSQL (Intermediate Data) 11 State Transition Algorithm Cost/Benefit Estimation Population Generator PostgreSQL (Output Data) PostgreSQL (Source Data) Java Swing JDBC Graphic User Interface
  • 12. Work In Progress Results • An initial prototype simulation model has built, that creates the initial heroin using population, new heroin initiators, and transitions to different states. • Developing user interface to support users to interact with the model to design and run different scenarios. • In the process of feeding the model with validated transition functions, per unit/event costs, and benefits. • The final step in the modelling will be to validate whether the model is consistent with heroin user career trajectory. 12
  • 15. Prof. Pascal Perez Research Director| SMART Infrastructure Facility University of Wollongong NSW 2522 P: +61 2 4252 8238 | F: +61 2 4298 1489 | M: +61 432 435 192 E: pascal_perez@uow.edu.au | W: http://smart.uow.edu.au/staff/UOW114981.html THANK YOU