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1. ECONOMIC EVALUATION
Prabesh Ghimire
Health Economics
Health Economic and Health Financing

2. Concept: Economic Evaluation
Comparative analysis of alternative courses of
action in terms of cost and consequences
Basic tasks
• Identify: Alternatives, types of resources, outcome
• Measure: Resources, consequences
• Value: Monetary terms, utility
• Compare: costs and consequences of alternative
strategies
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3. Components of Economic Evaluation
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4. Features of economic evaluation
Deals with costs and consequences of alternative
courses of action
Concerns with choices
• Resources are limited, and our consequent inability to
produce all desired outputs necessitates that choices
must be made
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5. Purposes of Economic Evaluation
To guide decisions about the most appropriate mix of
strategies and the best way to allocate scarce resources.
To provide an overview of the total amount of resources
that will be needed to start or expand a project. Is there
evidence on effectiveness of interventions?
To assist discussions about the relative efficiency and
equity of projects.
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6. Purposes of Economic Evaluation
To assist managers in deciding on the most appropriate
way to deliver a particular health intervention.
To provide information for the advocacy of new health
interventions and technologies.
To provide evidence-based information to donors and
policy makers that funding decisions resulted in cost-
effective allocation of resources.
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7. Types of economic evaluation
Cost effectiveness analysis
Cost minimization analysis
Cost benefit analysis
Cost utility analysis
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8. Types of Economic Evaluation
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Figure source: Higgins, A. M., & Harris, A. H. (2012)

9. Decision making tier
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Queries & Discussions…
Prabesh Ghimire