Economic Impact of Opioid Epidemic in Virginia

The opioid epidemic has been a problem in the United States for years, and the situation in some states is only getting worse. In particular, Virginia has seen a steady increase in the number of opioid overdose cases and deaths associated with it (Virginia Department of Health, 2021b). The situation is aggravated by an increase in the number of incidents involving illicit and synthetic opioids. At the same time, government policies aim to control and restrict prescription drug misuse. The opioid crisis is having a significant negative economic impact on the United States in general and Virginia in particular, reducing productivity and increasing the economic burden per capita. It is necessary to assess the potential effects of expanding the rehabilitation capacity as a promising measure to reduce the economic impact of the crisis.

The United States is experiencing an opioid epidemic resulting in a significant number of overdose deaths yearly. 67,367 drug overdose deaths were reported in 2018, 70% of which involved opioids (Virginia: Opioid-involved deaths, n.d). At the same time, the number of cases involving prescribed opioids is decreasing, while incidents involving synthetic analogs are increasing (Virginia: Opioid-involved deaths, n.d). The nationwide dispensing rate for opioids is also reported to have hit a 14-year low in 2019 (US opioid dispensing rate map, n.d). However, the situation is not uniform among different states.

The opioid epidemic has been a significant problem in the United States as a whole and in individual states in particular. Drug overdose has been the major cause of unnatural death in Virginia’s population since 2013 (Virginia Department of Health, 2021b). Virginia Department of Health (2021b) also reports that opioids were used in the vast majority of overdose cases, in particular illicit fentanyl. According to statistics, in the period from 2007 to 2020, “there has been a more than tenfold increase in fentanyl overdose deaths in Virginia” (Opioid use disorder, n. d, para. 2). In 2020, fentanyl was responsible for 71.8% of all overdose fatalities in Virginia (Virginia Department of Health, 2021b, p. 2). Thus, the state is currently experiencing an opioid crisis as the number of overdoses and related deaths in the population continues to rise.

The 2021 data also suggests that the situation is getting worse every quarter. 2021 is reported to have seen an increase in ED visits of Virginia residents with opioid overdose (Virginia Department of Health, 2021a). Moreover, in the second quarter of 2021, there is a significant increase in cases of overdose compared to the first quarter (Virginia Department of Health, 2021a). According to statistics, the number of incidents during this period increased by 20% across the state (Virginia Department of Health, 2021a, p. 6). Compared to 2019 and 2020, there is also a negative trend (Virginia Department of Health, 2021a). Thus, Virginia’s opioid epidemic is deteriorating at a dramatic rate.

The situation is associated with an increase in the number of illicit and synthetic opioids. It is noteworthy that, according to estimates for 2020, about 98% of fatal overdoses with this drug are due to its illicit types (Virginia Department of Health, 2021a, p. 17). In particular, there has been a decrease in the number of incidents with prescribed opioids while the number of incidents with synthetic opioids continues to increase (Virginia: Opioid-involved deaths, n.d). It also notes that prescription rates for opioids in Virginia remain lower than for the country as a whole (Virginia: Opioid-involved deaths, n.d; US opioid dispensing rate map, n.d). This situation is associated with economic losses, which are becoming increasingly difficult to control due to the spread of illicit drugs.

Every year, opioid overdose is the cause of the loss of not only people but also productivity. It is reported that “economic costs of just the productivity losses in Virginia due to opioid overdose deaths, use disorders, and incarceration topped $1.5 billion in 2017” (Center on Society and Health, n. d, p. 1). However, these indicators only include losses associated with declining productivity, which are reflected in employers, households, and federal and state budgets. Scavette (2019) stresses that there is no evidence of a direct impact of the opioid epidemic on the labor market. However, the author notes that a likely negative effect may be the inability of candidates to pass drug tests during selection, which hampers the search for qualified workers and decreases productivity (Scavette, 2019). In particular, the median age of death from opioid overdose is 41, which is the prime working age (Scavette, 2019, p. 5). Thus, the costs of overdose deaths are borne by the healthcare system, the addict’s family, and the taxpayers.

The federal and state governments are actively fighting this situation. However, for many years, policies, including the US Office of National Drug Control Policy, have focused on restricting and controlling opioid prescriptions. Maclean et al. (2021) note that with the rise in overdoses due to illicit drugs, the government has paid attention to criminal law enforcement, but this measure has not led to significant improvements. Lee et al. (2021) report that government measures to restrict access to prescribed opioids had “the unintended consequence of motivating those with opioid use disorders to access the illicit drug market, potentially increasing overdose mortality” (p. 2). Given that overdose death in Virginia is associated with higher per capita costs than opioid use disorder, attention should be paid to rehabilitation measures for addicted residents (Luo et al., 2021, p. 543; Scavette, 2019). Within the framework of existing policies, it is necessary to evaluate the potential economic impact of the measures taken. For future responses to the opioid epidemic, the potential economic impact of expanding rehabilitation opportunities for addicts needs to be assessed.

References

Center on Society and Health. (n.d). The cost of the opioid epidemic in Virginia: An analysis of workforce productivity losses. Web.

Lee, B., Zhao, W., Yang, K. C., Ahn, Y. Y., & Perry, B. L. (2021). Systematic evaluation of state policy interventions targeting the US opioid epidemic, 2007-2018. JAMA Network Open, 4(2), 1-14.

Luo, F., Li, M., & Florence, C. (2021). State-level economic costs of opioid use disorder and fatal opioid overdose — United States, 2017. Morbidity and Mortality Weekly Report, 70(15), 541-546.

Maclean, J. C., Mallatt, J., Ruhm, C. J., & Simon, K. (2021). Economic studies on the opioid crisis: Costs, causes, and policy responses. Economic Studies on the Opioid Crisis: A Review. 

Opioid use disorder in Fairfax County. (n.d). Fairfax County, Virginia. Web.

Scavette, A. (2019). Exploring the economic effects of the opioid epidemic. Economic Insights, 4(2), 1-7.

US opioid dispensing rate map. (n.d). Center for Disease Control and Prevention.

Virginia Department of Health. (2021a). Emergency department visits for unintentional drug overdose among Virginia residents. Web.

Virginia Department of Health. (2021b). Fatal drug overdose quarterly report: 1st quarter 2021. Web.

Virginia: Opioid-involved deaths and related harms. (n.d). National Institute on Drug Abuse. Web.

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