Health economics is concerned with applying economic theory and methods of analysis to the production and consumption of health and health care. It involves studying how scarce resources are allocated among alternative uses for health care and improving health. Key aspects of health economics include efficiency in resource allocation, the health care market, demand and supply of health care, equity in health outcomes and care, and health sector budgeting and planning. Economic evaluation techniques used in health economics include cost-benefit analysis, cost-effectiveness analysis, cost-utility analysis, and cost-minimization analysis to compare costs and consequences of alternative health interventions or programs.

2. ECONOMICS
HEALTH

5. Health is a state of complete
physical, mental and social well being
and not merely the absence of disease or
infirmity
“Health" in health economic
(evaluation) is health status according to
some measure.

6. HEALTH
ECONOMICS

7. It is the allocation of resources within the
health system in the economy, as well as
functioning of health care market.

8. HEALTH
ECONOMICS
Health economics is concerned with the
of health and health
care. It is the branch of economics concerned with the
application of to
associated with health and health care.

9. is the study of how scarce resources
are allocated among alternative uses for the care of
sickness and in the promotion, maintenance and
improvement of health, including the study of how
health care and health-related services, their costs
and benefits, and are itself distributed among
individuals and groups in society.

12. Efficiency
Production Of Health
Health care market
Macroeconomics
Economic Output Level

13. MEANING AND
SCOPE OF HEALTH
ECONOMICS
DETERMINANTS OF
HEALTH
HEALTH CARE
MARKETS
SUPPLY OF HEALTH
CARE
NATIONAL HEALTH
SYSTEMS
DEMAND FOR
HEALTH AND
HEALTH CARE
EQUITY IN HEALTH
OUTCOMES AND IN
HEALTH CARE
HEALTH SECTOR
BUDGETING AND
PLANNING

14. To formulate health
services
To establish the true costs of
delivering health care
To evaluate the relative costs and
benefits of particular policy
options
To estimate the effects of certain
economic variables

15. Health resources are finite. A choice must be made
which resource to use for which activity
Economics is concerned with efficiency
Equity or fair distribution of resources
It provides a framework which aims at
maximizing benefits within available resources

16. • How to extract maximum benefits from health
industry with the least cost combination
• The use of application of material things like
medicines, surgical instruments, lab
equipments, drugs, vaccinations, family
planning tools.

17. • Health and medical care is considered as
economic goods
• Health is a private or a public good
• Measurement of health is also considered in
economics
• Stock of health
• Investment aspects of health

18. • Loss due to ill health
• Resource costs of different diseases, effects of
health and medical care provision
• Planning of health and medical care
• Choice of technology in health care
system, etc.
• Provision of equity in health outcomes and
health care;

19. • Economic aspects of relationship between health
status and productivity
• Financial aspects of health care services
• Economic decision making in health and medical
care institutions
• Planning of health development and such other
related aspects

22. ECONOMIC VARIABLES
RELATIONSHIPS BETWEEN
ECONOMIC VARIABLES
GRAPHICAL
REPRESENTATION OF
RELATIONSHIPS
THE DIRECTION OF THE
RELATIONSHIPS

23. ECONOMIC
EVALUATION
Economic evaluation is the comparative
analysis of alternative courses of action in
terms of both their costs and consequences in
order to assist policy decisions .

24. STEPS IN ECONOMIC
EVALUATION

25. DEFINE
ALTERNATIVES
DEFINE
PERSPECTIVE,TIME
FRAME &
POPULATION
IDENTIFY, MEASUR
E & VALUE
RESOURCE USE
IDENTIFY,
MEASURE & VALUE
CONSEQUENCES
COMBINE COSTS &
ITS COSEQUENCES
ASSESS
ROBUSTNESS
INTERPRET THE
RESULTS

26. Cost analysis is a resource tool for financial
management in hospital or department. It is an
economic evaluation technique that involves the
systematic collection, categorization, and
analysis of program or intervention costs, and
cost of illness.

27. OBJECTIVES
• To assess the efficiency and effectiveness of function
and their cost implication.
• To improve the policy relevance and utility through
assessment, planning and avoidance of wasteful
expenditure in the hospital.
• To allow researchers to achieve cost minimization for
the programs under consideration.

28. PURPOSES
• A tool for planning and cost projection
• To assess the efficiency of a programme
• To assess the priorities
• Accountability
• To assess equity

29. • Make explicit the analytic perspective
• Describe the anticipated benefits
• Specify the components of costs
• Discount to adjust for differential timing
• Perform a sensitivity analysis
• Calculate measurement of efficiency

32. COST-BENEFIT
ANALYSIS (CBA)
COST MINIMIZATION
ANALYSIS (CMA)
COST-UTILITY
ANALYSIS (CUA)
COST-EFFECTIVENESS
ANALYSIS (CEA)

35. Cost-benefit analysis is a practical way of
assessing the desirability of projects, where it is
important to take a long view (looking at the
repercussion in the future as well as in the near
future and a wide view in the sense of allowing
side effects of many decisions)it implies the
enumeration and evaluation of all the relevant
cost and benefits.
-Prest and Terkey

36. Cost Benefit Analysis (CBA) is an economic
evaluation technique that measures all the
positive (beneficial) and negative (costly)
consequences of an intervention or program
in monetary terms.

37. COST
BENEFIT
ACTION

38. Calculate a payback
time for the venture
Add up and compare the
project's costs and benefits
Itemize the
projected benefits
Itemize any and
all intangible costs
Itemize the tangible costs
of the intended project
Define your CBA's
unit of cost

39. Cost-effectiveness analysis (CEA) is a form of
economic analysis that compares the relative costs
and outcomes (effects) of different courses of
action. Cost-effectiveness analysis is distinct
from cost–benefit analysis, which assigns a
monetary value to the measure of effect.
COST-EFFECTIVENESS ANALYSIS (CEA)

40. COST-MINIMIZATION ANALYSIS
Refers to an economic evaluation tool.
Is a method used to measure and
compare the costs of different medical
interventions.

41. COST–UTILITYANALYSIS (CUA)
Cost–utility analysis (CUA) is a form of
financial analysis used to guide procurement
decisions. The most common and well-known
application of this analysis is in pharmaco
economics, especially health technology
assessment (HTA).

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Management, 44, 94.
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