DR.SUNIL BHOYE BAMS, MPH(NUTRITION)

1. Introduction Of Health Economics
DR.SUNIL BHOYE
MPH(NUTRITION)
1

2. Index
Sr.No. Index Page No.
1 Introduction 3
2 Health Economics 4
3 What is health
economics
6
4 Importance of health
economics
7
5 Diagrammatic
background to health
economics
8
6 Role of health
economists
9
7 Types of economic
evaluation
11
8 References 12
2

3. Introduction
• In 1958, Selma Muskin published the papers
“Towards the definition of health economics”,
and in 1962 Selma Muskin published " Health as
an Investment".
• Kenneth Arrow’s paper “Uncertainty and the
welfare economics of medical care” published in
1963.
• In 1968, the World Health Organization held its
first international health economics seminar in
Moscow.
3

4. Introduction
• The National Health Policy was endorsed by
the Parliament of India in 1983 and updated in 2002,
and then again updated in 2017.
• According to the World Bank, the total expenditure on
health care as a proportion of GDP in 2015 was 3.89%.
• Out of 3.89%, the governmental health expenditure as
a proportion of GDP is just 1.8% and the out-of-pocket
expenditure as a proportion of the current health
expenditure was 65.06% in 2015.a
4

5. 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. Health economics is important in
determining how to improve health outcomes
and lifestyle patterns through interactions
between individuals, healthcare providers and
clinical settings.
5

6. Health Economics
• In broad terms, health economists study the
functioning of healthcare systems and health-
affecting behaviors such as smoking, diabetes,
and obesity.
• Health economics is the application of economic
theory, models and empirical techniques to the
analysis of decision-making by individuals, health
care providers and governments with respect to
health and health care.
6

7. What is health economics
• Health economics is the discipline of
economics applied to the topic of health care.
1. What goods and services shall we produce?
2. How shall we produce them?
3. Who Shall receive them?
7

8. Importance of health economics
• The importance of the economic model is that
it provides useful insights into how health care
can be organized and financed and provides a
framework to address a broad range of issues
in an explicit and consistent manner.
8

9. Diagrammatic background to health
economics
• Diagrammatic background to health economics— increasing
demands on limited resources (area of each circle reflects size
of each variable
9

10. Role of health economists
• Health economists are interested in the
production of health at a number of levels.
For example:
• What is health and how do we put a value on it?
• What influences health other than health care?
• What influences the demand for health care and
health care seeking behavior?
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11. Role of health economists
• What influences the supply of health care?
(The behavior of doctors and health care
providers.)
• Alternative ways of production and delivery of
health care.
• Planning, budgeting, and monitoring of health
care.
• Economic evaluation—relating the costs and
benefits of alternative ways of delivering health
care.
11

12. Types of economic evaluation
• Cost minimization analysis
• Cost effectiveness analysis
• Cost utility analysis
• Cost benefit analysis
• Cost consequences analysis
12

13. References
• Howard, Brandon; Health, JH Bloomberg School
of Public. "What Is Health Economics?". Johns
Hopkins Bloomberg School of Public Health.
Retrieved 25 February 2020.
• Arrow, Kenneth (1963). "Uncertainty and the
Welfare Economics of Medical Care". The
American Economic Review. 53 (5): 941–973.
• THE WORK OF WHO (PDF) (Report). 1968.
Retrieved 28 May 2021. 13

14. References
• Sekher, T.V. "Catastrophic Health Expenditure and Poor in
India: Health Insurance is the Answer?" (PDF). iussp.org.
Retrieved 18 September 2017.
• World Bank.
• Mihajlo, Jakovljevic; Seiritsu, Ogura (1999). Health
Economics at the Crossroads of Centuries – From the
Past to the Future.
• Uncertainty and the welfare economics of medical
care. 1963.
• Introduction to health economics for the medical
practitioner by D P Kernick ,Postgrad Med J 2003;79:147–
150 14

15. 15
Thank you