Good health is a fundamental right, and health economics deals with issues related to the production, distribution, and consumption of health and healthcare. It examines supply and demand factors at both the micro and macro levels. Microeconomics focuses on individual and organizational behaviors and their effects on prices and resource allocation. Macroeconomics analyzes overall economic metrics like GDP. Health economics applies these principles to evaluate healthcare policies, costs, benefits and resource allocation from an economic perspective. Nurses play an important role by recognizing resource constraints and engaging in efforts to improve quality and reduce costs.

1. HEALTH
ECONOMICS

2. INTRODUCTION OF HEALTH
◦Good health is a
fundamental right of every
individual . Internal and
external growth of a person
is not possible without good
health .

3. DEFINITITION OF HEALTH
◦ According to WHO
◦ “health is a state of physical , mental , and social wellbeing and
not merely and absence of disease or infirmity ’’
◦ According to oxford dictionary
◦ “health is that condition of mental and physical soundness which
enables the body to perform its functions timely and effectively .

4. WHAT IS ECONOMIC ?
 Economics is derived from
two Greek words ‘oikos’ means
house and ‘nomos’ which
stands for rule hence
Economics is household
management.

5. ◦Economics is a science that deals with the production ,
distribution and consumption of commodities .
◦(ACCORDING TO OXFORD DICTIONARY )
◦It is the practical science of production and distribution of
wealth (here wealth means stock of useful things )

6.  In short , economics is the branch of social science
that deals with the production , distribution and
consumption of good and services and their
management .
 as a part of economics , finance is an art and science
of obtaining and managing funds .

7. TYPES OF ECONOMICS
◦- Economics works on two principles:
MICRO -
ECONOMICS
MACRO –
ECONOMICSU

8. MICRO - ECONOMICS
◦It deals with the behaviors
of the individuals and
organizations and the
effects of those behaviors
on prices, costs, and the
allocating and distributing
resources.

9. FACTORS OF MICRO - ECONOMICS
◦ It has following factors:
SUPPLY
AND
DEMAND
EFFICIENCY
EFFECTIVEN
ESS

10. SUPPLY AND DEMANDS
◦These both factors are interrelated to
each other because if there is no
demand then there is no supply, but if
there is good demand then there is a
good supply and the cost of
demanding objects will be higher.

11. EFFICIENCY
◦ It refers to producing
maximal output, such as
good or services, using a
given set of resources,
such as labor, time, and
money.

12. EFFECTIVENESS
◦It refers to the extent
which a health care
services meets a stated
goal or objective, or how
well a program

13. MACRO - ECONOMICS
◦Macroeconomics deals
with the large- scale or
general economic
factors, such as interest
rates and national
productivity.

14. FACTORS OF MACRO - ECONOMICS
◦. It has two factors
G.N.P G.D.P

15. ◦ The gross National Product and Gross Domestic
Product are the conventional terms used to
understand the performance of the economy.
◦ These indicate the sum total of three components
in a country:-
 Personal consumption
Expenditure of goods and services
 Investment expenditure.
◦GNP & GDP serves as measures of total production
of goods and services in a country during year.

16. HEALTH ECONOMICS
◦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 healthcare.

17. ◦Health economics is a behavioural economics and a
broad concept . It is the application principles of
economics in the health sector .
◦DEFINITION
◦Health economics is a social system that study the
supply and demand of health care resources and the
effect of health services on population .
(MEDICAL DICTIONARY)

18. IMPORTANCE OF HEALTH
ECONOMICS
To formulate health services .
To establish the true costs of delivering health care or to
estimate all real costs like the use of patients' time, loss of
output elsewhere in the system etc.
To evaluate the relative costs and benefits of particular
policy options

19. AIMS OF HEALTH ECONOMICS
 To quantify overtime the
resources used in health
service delivery.
 To organize, allocate and
manage the resources.

20. ASPECTS OF HEALTH ECONOMICS IN INDIA
 Meaning and measurement of health
status
Health policies
Determinants of health
Tribal health
Health care service delivery

21. Health care awareness
 Heath care resources
 Health sector financing and
reform
 Health insurance
 Hospital economics
 Health economic evaluation

22. ECONOMIC ANALYSIS
◦Economic analysis is a comparative
analysis of alternative courses of
action
In terms of both their cost and
consequences order to assist policy
decision.

23. ◦There are four main types of economic analysis in
health
1.Cost minimization Analysis
2.Cost benefit analysis
3.Cost effectiveness analysis
4.Cost utility analysis

24. Cost minimization
◦ In this the inputs are
compared and outputs are
considered to be equal.
◦Cost minimization analysis
compares the cost of two
similar interventions to
ascertain which is less
expensive.

25. Cost benefit
 In this type of analysis all outputs
are measured in monetary terms
Cost-benefit analysis is a way to
compare the costs and benefits of
an intervention, where both are
expressed in monetary units. ...
However, CBA places a monetary
value on health outcomes so that both
costs and benefits are in monetary
units (such as dollars)..

26. Cost effectiveness
◦Cost-effectiveness analysis
is a way to examine both
the costs and health
outcomes of one or more
interventions.

27. Cost utility
◦ Cost utility analysis ( CUA )
is one type of economic
evaluation that can help you
compare the costs and
effects of alternative
interventions. CUA
measures health effects in
terms of both quantity (life
years) and quality of life

28. ◦Role of nurse in health
economics:
Nurses play a central role in cost
containment, care quality, and patient
safety.
Nurses actively engages in leading efforts
to improve patient care and reduce costs.

29. Health care Issues and Trends
Governing on Behalf of Stakeholders.
Monitoring Financial Performance
Building a Culture of Quality and
Safety.
Monitoring Quality Performance

30. Set strategy to help ensure the future health of a Vital
community resource.
Assume a valued community leadership role
Help the boards identify, clarify, and focus on the wants
and needs of the patients.

31. IMPORTANCE AND ROLE OF HEALTH ECONOMICS
Demands of the health care system are increasing day
by day , in the context of constraints on public funding .
For this reason choices will necessary have to continue to
be made in health system . So it is important that the cost
and benefit of health services and treatment are
measured .

32. In the past , decision were often made in health care
based only on the clinical outcome .
 While the aim of health economics is not to bring cost
constraints into an individual patient physician relationship
, it does not highlight the need for all health professionals
and managers (including nursing personals and
administration ) to recognize that resources have limit .

33. In this way , health economics help ,
policy and decision maker for making a
strategies about investment in the various
field of healthcare sector

34. ◦SOME MAJOR ROLES OF HEALTH ECONOMICS ARE:
1.To promote the efficiency and equity in health care
sector by providing analytical techniques to decision
makers or health planners .
2.To provide way of thinking about health and use of
health care resources .

35. 3 .To provide a process for recognizing the
scarcity and the need o make choices in health
care sector .
4 .To maximize the social benefit from health
producing resources

36. HEALTH ECONOMICS AND NURSING
◦ Nursing and nurses are profoundly affected by financial issues . It is Therefore
necessary to understand the overall health economic context in which nursing
care is provided
◦ Nurses must be aware about ahead given important aspects of health
economics
NATION’S HEALTH CARE POLICY AND POLITICS
CONCEPTS AND TERMS OF HEALTH ECONOMICS
THE PRICE OF HEALTH CARE
METHODS OF PAYMENT OF HEALTH CARE

37. HEALTH CARE FINANCING ADMINISTRATION OF NATION
BUDEGETING
COST COTAINMENT
COST OF NUSING SERVICES