Economic Analysis Related to Life Care Planning

A life care plan identifies projected medical treatment, rehabilitation services, equipment, and support needs associated with an injury or chronic condition. Economic analysis related to a life care plan involves estimating the financial cost of those projected needs over time.

Purinton Analytics provides vocational evaluation and life care planning services, and coordinates with qualified economists when economic analysis is required. This process is intended to assist attorneys, insurance professionals, and other stakeholders in understanding the projected financial implications of future care needs based on the information available.

Relationship Between Life Care Planning and Economic Analysis

Life care planning and economic analysis address different aspects of future needs. The life care plan identifies the goods and services that may be required. Economic analysis applies cost data and accepted economic methods to estimate the financial value of those projected needs over time.

Depending on the case, this process may involve consideration of projected frequency and duration of services, regional cost information, replacement intervals for equipment, and other case-specific factors. Economic calculations may also take into account assumptions regarding life expectancy, cost trends, and related variables, where applicable and supported by the available information.

This approach allows the underlying care recommendations and the associated financial analysis to remain coordinated while each discipline operates within its own scope.

Vocational and Economic Considerations

In some matters, future care needs may exist alongside questions regarding employability, earnings, or the need for support services. When those issues are present, vocational findings may be considered together with economic analysis in order to evaluate the financial implications of reduced work capacity, changes in employment, or related service needs.

Depending on the facts of the case, this may include consideration of lost earnings, diminished earning capacity, retraining needs, household services, caregiving support, transportation needs, or other projected expenses identified in the records or evaluations.

Applications in Legal and Insurance Matters

Economic analysis related to life care planning may be relevant in personal injury, catastrophic injury, medical malpractice, product liability, disability, workers’ compensation, and insurance matters. These analyses may be used to assist in evaluating projected future care costs and other financial issues raised by the case.

The role of the analysis is to organize and quantify projected costs based on the available information, not to determine legal liability or the outcome of a claim.

Our Methodology

These matters are addressed through review of the available records, life care planning materials, vocational information when relevant, and other case-specific documentation provided. Cost information is obtained from available and appropriate data sources, including regional pricing when applicable.
Economic calculations are performed by or in coordination with qualified economists using standard economic methods. Vocational opinions and life care planning findings are developed within their respective professional scopes and may be used as inputs for the economic analysis.

All findings are based on the information available at the time of the analysis. If additional records or updated information are later provided, the analysis may be revised.