This presentation gives a basic introduction to the field of health economics and includes important concepts like that of efficiency, equity, opportunity costs, demand and supply and also includes financial evaluation
Health economics is a branch of economics concerned with issues related to efficiency, effectiveness, value and behavior in the production and consumption of health and healthcare.
students wonder exactly what health economics is. is it about money in health, more health for the same money ? about health in hospitals or health of the country.
Health economics is the discipline of economics applied to the topic of health care. Broadly defined, economics concerns how society allocates its resources among alternative uses. Health economics addresses questions primarily from the perspective of efficiency, maximising the benefits from available resources or ensuring benefits gained exceed benefits forgone. This presentation covers the concept, components, importance, factors influencing, steps and various types of evaluation in health economics.
Health economics is a branch of economics concerned with issues related to efficiency, effectiveness, value and behavior in the production and consumption of health and healthcare.
students wonder exactly what health economics is. is it about money in health, more health for the same money ? about health in hospitals or health of the country.
Health economics is the discipline of economics applied to the topic of health care. Broadly defined, economics concerns how society allocates its resources among alternative uses. Health economics addresses questions primarily from the perspective of efficiency, maximising the benefits from available resources or ensuring benefits gained exceed benefits forgone. This presentation covers the concept, components, importance, factors influencing, steps and various types of evaluation in health economics.
Declaration: The materials incorporated in this document have come from variety of sources and compiler bears no responsibilities for any information contained herein. The compiler acknowledges all the sources although references have not been explicitly cited for all the contents in this document.
Health economics is a branch of economics concerned with issues related to efficiency, effectiveness, value and behaviour in the production and consumption of health and health care.
In broad terms, health economists study the functioning of health care systems and health- affecting behaviour such as smoking.
It is the discipline of economics applied to the health care.
Concept of Economic Evaluation in Health CarePrabesh Ghimire
Declaration: The materials incorporated in this document have come from variety of sources and compiler bears no responsibilities for any information contained herein. The compiler acknowledges all the sources although references have not been explicitly cited for all the contents in this document.
Here is the slide on Healthcare economic evaluation. The content of this presentation doesn't belong to me. They are copied from several literature and internet
Declaration: The materials incorporated in this document have come from variety of sources and compiler bears no responsibilities for any information contained herein. The compiler acknowledges all the sources although references have not been explicitly cited for all the contents in this document.
“Function of a health system concerned with the accumulation, mobilization and allocation of money to cover the health needs of the people, individually and collectively, in the health system.” (WHO)
Revenue collection :
Taxation-most equitable system of financing
Health insurance contributions
User pays (out of pocket, no reimbursement)
Donor funding/Grants
Declaration: The materials incorporated in this document have come from variety of sources and compiler bears no responsibilities for any information contained herein. The compiler acknowledges all the sources although references have not been explicitly cited for all the contents in this document.
Health economics is a branch of economics concerned with issues related to efficiency, effectiveness, value and behaviour in the production and consumption of health and health care.
In broad terms, health economists study the functioning of health care systems and health- affecting behaviour such as smoking.
It is the discipline of economics applied to the health care.
Concept of Economic Evaluation in Health CarePrabesh Ghimire
Declaration: The materials incorporated in this document have come from variety of sources and compiler bears no responsibilities for any information contained herein. The compiler acknowledges all the sources although references have not been explicitly cited for all the contents in this document.
Here is the slide on Healthcare economic evaluation. The content of this presentation doesn't belong to me. They are copied from several literature and internet
Declaration: The materials incorporated in this document have come from variety of sources and compiler bears no responsibilities for any information contained herein. The compiler acknowledges all the sources although references have not been explicitly cited for all the contents in this document.
“Function of a health system concerned with the accumulation, mobilization and allocation of money to cover the health needs of the people, individually and collectively, in the health system.” (WHO)
Revenue collection :
Taxation-most equitable system of financing
Health insurance contributions
User pays (out of pocket, no reimbursement)
Donor funding/Grants
HSA405 Healthcare Policy and LawCHAPTER 9Health Economic.docxpooleavelina
HSA405 Healthcare Policy and Law
CHAPTER 9
Health Economics in a Health Policy Context
Starting at page 156 Health Economics Defined
Entire books and courses are devoted to the concept of health economics, and this chapter is not an attempt to distill all the theories and lessons of those texts and courses. Instead, our goal is to introduce you to the basic concepts of health economics, because understanding how economists view health-related problems is one essential component of being a good health policy analyst and decision maker. This chapter begins with an overview of what health economics is, how economists view health care, and how individuals determine whether obtaining health insurance is a priority in their lives. It then moves to a review of the basic economic principles of supply, demand, and market structure. As part of this discussion, you will learn what factors make supply and demand increase or decrease, how the presence of health insurance affects supply and demand, how different market structures function, and what interventions are available when the market fails to achieve desired policy goals.
HEALTH ECONOMICS DEFINED
Economics is concerned with the allocation of scarce resources, as well as the production, distribution, and consumption of goods and services. Macroeconomics studies these areas on a broad level, such as how they relate to national production or national unemployment levels, while microeconomics studies the distribution and production of resources on a smaller level, including individual decisions to purchase a good or a firm’s decision to hire an employee. Microeconomics also considers how smaller economic units, such as firms, combine to form larger units, such as industries or markets.1(p3) Health economics, then, is the study of economics as it relates to the health field.How Economists View Decision Making
Economists assume that people, given adequate information, are rational decision makers. Rational decision making requires that people have the ability to rank their preferences (whichever preferences are relevant when any sort of decision is being made) and assumes that people will never purposely choose to make themselves worse off. Instead, individuals will make the decision that gives them the most satisfaction, by whatever criteria the individual uses to rate his level of satisfaction. This satisfaction, referred to as utility by economists, may be achieved in many ways, including volunteering time or giving money to charities. Utility in a health context takes into account that individuals have different needs for and find different value in obtaining healthcare goods and services, and that whether and which health resources are purchased will depend on the individual’s preferences and resources.Utility Analysis
What does utility mean in terms of health care? Most people do not enjoy going to the doctor or taking medicine. It seems strange to think that individuals are happy as a result ...
Ageing is an important physiological phenomenon faced by all living individuals that is multifactorial and complex. The causation is still a matter of controversy. There is a lack of consensus regarding the appropriate age of ageing, though most of the countries uses chronological ages.
This presentation is regarding active ageing that builds up framework that will help the elderly mass to live a disease free active life with active participation and security in life.
This presentation also describes the different challenges faced by the elderly population for active ageing.
Government of India has been working for the aged population and there has been a number of policies and programmes that are solely dedicated to the elderly masses that has been also described here.
The presentation begins with a brief history of how cancer epidemiology evolved, and what is the status at present. After describing the burden of the disease of cancer globally and in India, the presentation includes a brief description of Cancer causes and prevention including screening activities. It also talks about the national Cancer Registry Program, NPCDCS and NCCP.
Health in Indian Federal system consists of how the different health related responsibilities are being divided among centre, state and concurrent list for better administration and health care delivery in India.
This presentation is the continuation of the first part, which was all about the basics of program evaluation. This ppt contains slides describing the impact evaluation in details and also the logical framework is also explained with practical examples.
N.B: Please go through it, using slide view to use the animation effects.
This presentation has a vivid description of the basics of doing a program evaluation, with detailed explanation of the " Log Frame work " ( LFA) with practical example from the CLICS project. This presentation also includes the CDC framework for evaluation of program.
N.B: Kindly open the ppt in slide share mode to fully use all the animations wheresoever made.
This is a small and mostly pictorial presentation which describes the role of community mobilisation in fighting Ebola. The small success stories has been taken from the World Health Organisation site, to have a better understanding of the power of community mobilisation in fighting any disease state, specially in countries of Africa .
Natural History of Disease & Levels of preventionsourav goswami
I have tried to explain the National History of Disease taking the example of a disease condition. Similarly, the different prevention levels are also explained in a similar manner. The presentation also includes few newer concepts of screening like lead time and length time bias.
N.B: Please download to see all the animations.
Prevalence of depression and its correlates among elderly population in a ru...sourav goswami
This is the original article, that has been carried out in Bhidi, a rural practice area under MGIMS, Sevagram.
This article has been presented orally in the International Conference of Geriatrics & Gerontology, ISI, Bangalore in 2016, and has been appreciated.
The Burden of Disease ( BOD) analysis describes in details the uses and effects of BOD. How to measure it. Special emphasis has been given in understanding HALY, DALY and QALY.
N.B: 1. Please download the ppt first, as the animations will act better then
2. There are few hidden slides in the presentation, which you may explore too.
This presentation talks about the context of developing the Electronic Health records for India. the guidelines as mentioned in the GOI site is described vividly with examples, for better understanding.
N.B: Please download the ppt first, for the animations to work better.
This is a presentation , which broadly explains the different strategies of Health Financing, as described and developed by World Health Organisation. Apart from the different strategies, this ppt also includes the report of the National Health Accounts (NHA), GOI, which helps in getting a better understanding of the current scenario, when we may compare what we have to reach upto, as per the new National Health Policy 2017 !!!
This presentation is all about the epidemiology of stillbirths, in India. It talks about the different challenges in controlling the stillbirths and the strategies of controlling it. The INAP guideline of Government of India, which is a stepping stone for controlling stillbirths in India, is also discussed here.
Epidemiology of Childhood Malnutrition in India and strategies of controlsourav goswami
This presentation includes the epidemiology of childhood malnutrition in India. the problems and challenges that are being faced in the improvement of the condition and the different strategies for its control.
Understanding the concept of Universal Health Coverage (UHC) and how can we reach it, both globally and also in India. The presentation also includes HLEG report , which is the proposed architecture for India's guide to reach UHC.
Kseniya Leshchenko: Shared development support service model as the way to ma...Lviv Startup Club
Kseniya Leshchenko: Shared development support service model as the way to make small projects with small budgets profitable for the company (UA)
Kyiv PMDay 2024 Summer
Website – www.pmday.org
Youtube – https://www.youtube.com/startuplviv
FB – https://www.facebook.com/pmdayconference
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
Recruiting in the Digital Age: A Social Media MasterclassLuanWise
In this masterclass, presented at the Global HR Summit on 5th June 2024, Luan Wise explored the essential features of social media platforms that support talent acquisition, including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Buy Verified PayPal Account | Buy Google 5 Star Reviewsusawebmarket
Buy Verified PayPal Account
Looking to buy verified PayPal accounts? Discover 7 expert tips for safely purchasing a verified PayPal account in 2024. Ensure security and reliability for your transactions.
PayPal Services Features-
🟢 Email Access
🟢 Bank Added
🟢 Card Verified
🟢 Full SSN Provided
🟢 Phone Number Access
🟢 Driving License Copy
🟢 Fasted Delivery
Client Satisfaction is Our First priority. Our services is very appropriate to buy. We assume that the first-rate way to purchase our offerings is to order on the website. If you have any worry in our cooperation usually You can order us on Skype or Telegram.
24/7 Hours Reply/Please Contact
usawebmarketEmail: support@usawebmarket.com
Skype: usawebmarket
Telegram: @usawebmarket
WhatsApp: +1(218) 203-5951
USA WEB MARKET is the Best Verified PayPal, Payoneer, Cash App, Skrill, Neteller, Stripe Account and SEO, SMM Service provider.100%Satisfection granted.100% replacement Granted.
Understanding User Needs and Satisfying ThemAggregage
https://www.productmanagementtoday.com/frs/26903918/understanding-user-needs-and-satisfying-them
We know we want to create products which our customers find to be valuable. Whether we label it as customer-centric or product-led depends on how long we've been doing product management. There are three challenges we face when doing this. The obvious challenge is figuring out what our users need; the non-obvious challenges are in creating a shared understanding of those needs and in sensing if what we're doing is meeting those needs.
In this webinar, we won't focus on the research methods for discovering user-needs. We will focus on synthesis of the needs we discover, communication and alignment tools, and how we operationalize addressing those needs.
Industry expert Scott Sehlhorst will:
• Introduce a taxonomy for user goals with real world examples
• Present the Onion Diagram, a tool for contextualizing task-level goals
• Illustrate how customer journey maps capture activity-level and task-level goals
• Demonstrate the best approach to selection and prioritization of user-goals to address
• Highlight the crucial benchmarks, observable changes, in ensuring fulfillment of customer needs
Top mailing list providers in the USA.pptxJeremyPeirce1
Discover the top mailing list providers in the USA, offering targeted lists, segmentation, and analytics to optimize your marketing campaigns and drive engagement.
An introduction to the cryptocurrency investment platform Binance Savings.Any kyc Account
Learn how to use Binance Savings to expand your bitcoin holdings. Discover how to maximize your earnings on one of the most reliable cryptocurrency exchange platforms, as well as how to earn interest on your cryptocurrency holdings and the various savings choices available.
An introduction to the cryptocurrency investment platform Binance Savings.
Basics of Health economics
1. Basics of Health Economics
Presented by:
Dr Sourav Goswami
Moderator:
Dr BS Garg
2. Framework
Understanding Health Economics
Why we need Health Economics?
Basic terms and concepts
Different types of Economic Evaluation
The concept of Market, Demand, Supply & Surplus
Health financing
Resource mobilization
Risk pooling
Resource allocation
3. Pessimist: Glass ½ Empty
Guess, what the Economist
will say??
Optimist: Glass ½ Full
This is the “Economist’s view
of the world”
Glass is ½ WASTED
4. What is Economics?
Language of Economy is the language of SCARCITY !!!
“Study of how individuals and societies choose to
allocate scarce productive resources among alternative
uses and subsequently to distribute the products
from these uses among members of a society”
Economics answers: WHAT, HOW & WHO?
Health and Health care are seen as two
important products to which all societies
commit productive resources
5. Can economics be applied in health sector?
Scarcity of resources OR Increased demand?
• Ageing population
• New health technologies
• Increased expectations from people ……
6. Health Economics
It is the study of how scarce productive resources are
allocated among alternative uses for the care of sickness and
the promotion, maintenance and improvement of health.
It further includes the study of how health care and health‐
related services, their costs and benefits, and health itself, are
distributed among individuals and groups in society.
7. Health Economics
So, it gives a theoretical framework to help healthcare
professionals, decision-makers or governments to make
choices on…
HOW to maximize the health of population
given constrained health producing
resources !
What health economists need is…
To understand the relationship between resources used and health
outcomes achieved by alternative options.
…and compare!
8. Types of economic problems in health
sector
• At what level should hospital fees be set?
• Are taxes on cigarettes a useful way of promoting
health through reducing the prevalence of smoking?
• Which is the more effective method of increasing
the take-up of health services: price controls or
subsidies?
• How should doctors be paid?
• Which treatments are the most cost-effective for
people with HIV?
9. Why Economics matters in Health ?
How can we save our resources?
Are we doing the right thing?
How can we decrease the cost?
How can we use public resources to help people who need
them the most?
What’s about a public-private mix-up?
How cost escalation is being contained?
What about the indirect cost of health care?
It helps in developing the effectiveness of the
MOHFW in dialoguing with MOF in order to ask
for more investment in the health sector
10. Basic terms and concepts in Health
Economics
Concept of Efficiency
Concept of Equity
Concept of Utility & Cost
Concept of Opportunity Cost
Concept of Marginal cost & benefit
11. Concept of Efficiency
“Get the MOST out of scarce resources”
3 main elements:
1. Do not waste resources
2. Produce each output at least cost
3. Produce the types and amounts of output which people
value the most
12. Concept of Efficiency contd…
Types of efficiency
Technical efficiency: For any given amount of output
the amount of inputs used to produce it is minimized (it can
also be stated- that maximum output is produced from any
given combination of inputs)
Allocative efficiency: where the pattern of output
matches the pattern of demand;
Cost effectiveness efficiency: A guide to choose
between two alternative methods or interventions
In common language,
efficiency means both 'doing things right' (technical
efficiency and cost effectiveness‐ ), and
'doing the right things' (allocative efficiency).
13. Concept of Equity
The term EQUITY stands for social justice or fairness
Bravemann and Gruskin define equity in health as follows:
“For the purposes of operationalization and measurement,
equity in health can be defined as the absence of systematic
disparities in health (or in the major social determinants of
health) between social groups who have different levels of
underlying social advantage/disadvantage—that is, different
positions in a social hierarchy.”
Inequities in health systematically put groups of people who are
already socially disadvantaged (for example, by virtue of
being poor, female etc) at further disadvantage with respect
to their health;
15. Concept of Equity contd…
HORIZONTAL
It refers to equal access to
health care services for all
people with the same
needs, regardless of
location, gender, race
and other
determinants.
It looks at how well
health services are
distributed throughout
society
VERTICAL
It refers to the equal access to
health services irrespective
of income
Many health financing systems
are set up so that the rich
subsidize the poor, i.e. the rich
pay relatively more for health
services than the poor—
therefore aiming at reducing
vertical inequity.
16. In order to gauge equity we need to gather data through
household surveys on socio-economic status and health
outcomes.
HEALTH OUTCOMES are primarily measured by
mortality, fertility, nutrition and morbidity outcomes and
are expressed as a rate which represents an average
among the population, not taking into account the
variance in outcomes across different income quintiles
Concept of Equity contd…
17. Concept of Equity contd…
0
30
60
90
120
150
1980 1985 1990 1996
Bangladesh
India
Nepal
Pakistan
Sri Lanka
Source: Poverty Fact Sheets, World Bank (based on DHS Data, USAID
(Source: United Nations
Population Division)
IMR
18.
19. Concept of Utility & Cost
“Utility” is the economic term for satisfaction obtained
from purchasing a particular good or service
“Cost” originates from constraints on our resources
Economic resources are allocated according to a “price
system.”
20. “I have sometimes suggested when teaching [health economics]
that if any of the participants fall asleep during my lecture and
awaken conscious that I have asked a question but that it has
gone unheard, then the best response is to mutter something
about opportunity cost and the margin. This has something
like a 50 per cent or higher chance of being at least partly right.”
Professor Gavin Mooney,
a leading health economist
21. Concept of Opportunity Cost
The opportunity cost of a commodity is the value of the
best alternative use to which those resources could have
been put, the value of the productive opportunities
foregone by the decision to use them in producing that
commodity
Two fundamental characteristics of economic analysis
follow from the concept of opportunity cost.
1. Economics is concerned with evaluating and choosing
among alternative courses of action, whether or not they
are explicitly identified.
2. Secondly, in doing so, it examines both the costs and
consequences of the alternatives
22. Concept of Marginal cost & benefit
Marginal refers to ‘the next unit’.
Economists define the MARGINAL COST of an output to
be the additional cost incurred in producing the last (or
next) unit of that output.
Similarly, the MARGINAL BENEFIT is the additional
benefit obtained by consuming the last (or next) unit of
an output
23. Marginal cost & benefit
Number
Of tests
Total no
Of cases
detected
Additiona
l
Cases
detected
Total
Cost ($)
Average
Cost/case
($)
Marginal
Cost per case
($)
1 65.946 65.95 77,511 1,175 1,175
2 71.442 5.496 107,690 1,507 5,492
3 71.900 0.458 130,199 1,810 49,146
4 71.938 0.038 148,116 2,059 471,500
5 71.941 0.00372 163,141 2,268 4,038,978
6 71.942 0.00028 176,331 2,451 47,107,143
Source: What do we gain from the sixth stool guaiac?
by: Neuhauser and Lewicki (1976)
New England Journal of Medicine
To summarise, marginal analysis is about
getting the most value out of the
resources used and in practical terms
entails measuring the costs and benefits
of expanding or contracting an activity,
program or service
24. Economic Analysis
To ensure healthcare resources are allocated in an efficient
manner, health economists rely on various types of economic
analyses.
A common element across all forms of economic evaluation
is that they involve measuring “costs”
The important methods of doing an economic evaluation are:
1. Cost Effectiveness analysis (CEA)
2. Cost-Utility analysis (CUA)
3. Cost-Benefit analysis (CBA)
31. The concept of Market
A market is simply the result of the interaction of supply
and demand.
For any market to function, we need 3 components:
1. Trading of a good or service;
2. Two independent players— buyers & sellers;
3. A 'price' of the good or service that conveys information
about its value —
buyers’ willingness to pay = DEMAND,
sellers’ willingness to produce = SUPPLY
33. Issues in interaction of supply & demand in
health
Buyers/Clients
1.Able and willing to pay
2.Informed
3.Rational
4.Time to shop
Good or Service
5.Homogenous
(similar)
inputs/similar quality
6.Price known in
advance
Producers/Suppliers
7.Many sellers
8.Free entry
9.Free exit
(A producer
starts producing,
buying necessary
machinery, patents
or anything else on
terms that are
equivalent to those
already in the
industry)
34. Demand
When economists talk of 'demand' in the market place,
they are talking about consumers who want something
and are able and willing to pay for it. The presumption
when analyzing markets is that when consumers want
something and are willing to pay for it, it is because they
feel it enhances their personal utility or welfare.
Demand VS Need
36. Demand shifters
Five types of demand shifters are recognized:
1.Number of consumers
2.Income of consumers
3.Consumer tastes
4.Price of substitutes
5.Price of complements
37.
38. Supply
SUPPLY is the amount of a commodity that present or
potential sellers are willing to put on the MARKET, in
response to the price offered by (or on behalf of) buyers.
40. Supply shifters
Three types of supply shifters are recognized:
1. Number of suppliers
2. Cost of inputs
3. New technologies
If we want to increase the supply of a good or service,
we can:
1. Increase its price;
2. Reduce costs of producer inputs;
3. Invent new technologies that yield more output per input.
43. Health Financing
Health financing is the process of monetary support of a
program such as health care. It comprises of three stages:
RESOURCE MOBILIZATION
RISK-POOLING
RESOURCE ALLOCATION
44.
45. Resource Mobilization
Resource mobilization looks at mechanisms for collecting
money to be spent on health.
The different ways of resource mobilization includes:
1.General revenue
2.Insurance schemes
3.Community financing
4.OOP
5.External source of financing
47. Risk Pooling
RISK-POOLING refers to the management of financial
resources so that large, unpredictable individual financial
risks become predictable and are distributed among all
members of the pool.
Three Ways to Pool Revenues are –
From Healthy to Sick;
From Rich to Poor and
Across the Life Cycle.
48. Resource allocation
Resource Allocation concerns itself with allocating the mobilized
(and pooled) resources to service providers.
Allocation has three dimensions:
The goals dimension—Criteria of allocation (Why ?)
The institutional dimension—Recipient institutions
(Who To ?)
The financial dimension- Forms of allocation (How To?)
1. Why (criteria) Allocation involves
criteria that express health policy
objectives. Those can range from
explicit targeting of programs such as
Maternal and Child Health (MCH) or
specific projects such as particular
immunization. It may also involve
criteria such as allocation by age and
gender or income levels that target
the specific need of particular
populations.
2. Who To (institutions) Institutions
are involved since they are the
budget holders responsible for
securing, but not necessarily
providing, health care. These
institutional arrangements may be
related to geography and to
particular types of health financing
systems.
3. How To (financing
mechanisms) Finally, we focus on
the explicit financial mechanism
used to transfer funds from the
pool to the recipient, making use
of the institutional framework of
the specific health care system.
All organizations that mobilize
funds have to decide which
organizations to pay, what to pay
them for, and how much to pay
them.
Payment methods include:
1. Fee-For-Service;
2. Salary (and Bonuses);
3. Capitation;
4. Admission-Based;
5. Diagnostic-Related Grouping
(DRG);
6. Budgets (Line-Item or Global).
49. References
World Bank Institute: Basics of Health Economics; Module 1 to 10.
Bhalwar R. Textbook of Public Health and Community Medicine, Published
by Dept of Community Medicine AFMC Pune in collaboration with WHO,
India office New Delhi, First edition 2009; 427-435
Phillips CJ. Health Economics: an introduction for health professionals.
Blackwell Publishing ; BMJ Books.2005.
Drummond MF, Sculpher MJ, Claxton K, Stoddart GL, Torrance GW.
Methods for the Economic Evaluation of Health Care Programmes.4th
ed.
Oxford University Press. United Kingdom;2015
The study of economics seeks to answer three important questions:
• What shall we produce with society’s limited resources?
• How shall the resources be employed in production? and
• Who shall receive the resulting goods and services?
Theoretical framework to help healthcare professionals ,decision-makers or governments to make choices on…
HOW to maximize the health of population given constrained health producing resources
What health economists need is…
To understand the relationship between resources used and health outcomes achieved by alternative options.
…and compare!
The assumption is made in economics that people continually try to maximize their utility, usually within their budget constraints. Generally speaking, if the utility of a good is greater than its cost, people will buy more of that good. Likewise, when the cost exceeds a good’s utility, they won’t purchase it.
With unlimited resources, every good would be free, like air. However, we live in a state of economic scarcity.
Most goods and services are obtained only by those individuals who are willing and able to pay for them. If there were no limits on resources, goods would have no value because we would use them until totally satisfied.
Under fully competitive conditions in a MARKET, producers will try to make optimally efficient use of resources by minimizing their costs and allocating them in ways that society wants. When any of the Nine Conditions are not met, MARKET FAILURE may be the result.
Generally there are five ways of collecting this money, which, in most systems are mixed and matched in varying degrees depending on the values and goals of the health system:
Generally there are five ways of collecting this money, which, in most systems are mixed and matched in varying degrees depending on the values and goals of the health system:
Generally there are five ways of collecting this money, which, in most systems are mixed and matched in varying degrees depending on the values and goals of the health system: