Academic Articles Medical Studies

Influenza Vaccination: Part V

A final analysis of the cost of flu vaccination is provided to us by Margaret Coleman, John Fontanesi and colleagues (2004). The authors examine the cost of the vaccination for different size practices in a scheduled visit and walk-in setting. Unlike most studies, this research team decided to applied overhead expenses to cost of vaccinations. While the marginal cost of overhead from a vaccination is zero, there is an incremental cost when the physician/firm decides to offer vaccinations. Vaccination storage, hazardous waste disposal, employee training and other fixed costs are incurred when the firm decides to vaccinate its patients. Thus, policymakers should take these costs into account if they wish to price services at average cost, but not marginal cost.

The costs of an influenza shot are as follows:

Scheduled Visit



Vaccine costs Clinical Labor Non-clinical labor Overhead Total
Solo/Partner $8.84 $2.10 $25.47 $9.86 $46.27
Small $8.51 $6.05 $10.32 $9.57 $34.45
Medium $8.19 $2.00 $8.10 $9.48 $27.77
Large $7.86 $1.68 $6.46 $9.22 $25.22
Corporate $7.54 $1.35 $1.55 $9.14 $19.58
Walk-in Clinic
Vaccine costs Clinical Labor Non-clinical labor Overhead Total
Solo/Partner $8.84 $0.95 $25.47 $4.53 $39.79
Small $8.51 $2.75 $10.32 $4.42 $26.00
Medium $8.19 $0.91 $8.10 $4.32 $21.52
Large $7.86 $0.76 $6.46 $4.21 $19.29
Corporate $7.54 $0.61 $1.55 $4.17 $13.87

The vaccination cost includes the actual cost of the vaccine, plus shipping, handling and storage, less any bulk discount. At the time of the publication of this paper, Medicare payment rates were only around $12-$17 per shot. This payment rate would have only covered average costs in the case of corporate firms operating walk-in clinics.

  • Coleman, M. S., J. Fontanesi, M. I. Meltzer, A. Shefer, D. B. Fishbein, N. M. Bennett and D. Stryker. “Estimating Medical Practice Expenses from Administering Adult Influenza Vaccinations.” Vaccine, 2005, 23 (7), pp. 915-923.