Cost Analysis of Precision Diagnostics Using Next Generation Sequencing in Lung Cancer Patients

Background: Next generation sequencing (NGS) technology allows precise genetic analysis and has advanced personalized medicine by reducing diagnostic time and cost.Although NGS identifies genetic mutations for tailored treatments of non-small-cell lung cancer (NSCLC), its cost-effectiveness remains underexplored in South Korea.Methods: This retrospective study analyzed patients with NSCLC between 2018 and 2024.The patients were divided into two groups: NGS-based diagnosis and traditional diagnostic methods.Propensity score matching ensured comparable baseline characteristics, including survival duration.Total treatment costs, including out-of-pocket expenses and insurance contributions, were evaluated with a focus on comparable survival durations.Results: The NGS group incurred higher initial costs due to diagnostic and targeted therapy expenses.However, from the third year onwards, the total treatment costs for the NGS group were consistently lower than those for the traditional diagnostic method group, when compared over equivalent survival durations.Over five years, the NGS group demonstrated superior cost efficiency, emphasizing its long-term economic benefits.Conclusion: Although upfront costs were higher, NGS is economically advantageous by reducing the cumulative costs for equivalent survival durations after the third year.These findings highlight the importance of expanding the application of NGS in South Korea and its cost-effectiveness in personalized oncology.