Is Gastric Sleeve Surgery Cost Effective for People with Type 2 Diabetes?

A modelling study published in 2026 looked at whether gastric sleeve surgery offers better value than medicine based treatment for people living with obesity and type 2 diabetes. It found that surgery provided more health benefit over a lifetime at a relatively small additional cost.
Who Was Studied and How the Research Worked
Researchers used a mathematical model to simulate 1,000 people aged 40 with obesity and type 2 diabetes, following them over a 60 year lifetime. They compared gastric sleeve surgery, where part of the stomach is removed to reduce how much a person can eat and to change the way the body handles food and blood sugar, against medicine based treatment. Real cost data came from hospital records of 99 patients in Türkiye.
What the Researchers Found
Over a lifetime, surgery cost around US$631 more per person than medicine based treatment. In return, it provided an extra 1.35 quality adjusted life years, a measure that captures both how long and how well a person lives. The study concluded that surgery was a cost effective option for people with obesity and type 2 diabetes within the healthcare funding system studied.
What This Study Does and Does Not Tell Us
The study was conducted entirely from a Turkish healthcare funding perspective, so the specific costs and system level figures may not translate directly to Australia. The model also relied on published literature for some of its health outcome estimates rather than tracking real patients over 60 years, which is a recognised limitation of this type of research.
About this research: Cost Effectiveness Analysis of Bariatric Surgery and Pharmacological Treatments for People with Obesity and Type 2 Diabetes Mellitus, Obesity Surgery, 2026. Read the study summary
More about gastric sleeve surgery and what it involves is on our pricing page. If you are considering your options, call us on (03) 9760 2777 or request an appointment through our website.