Chapter 10: Economic Evaluation Flashcards
are what society, governments or individuals incur to run a program, or to produce something that they desire, like better health.
Costs
The measure of all the costs entailed in producing a given level of output. It is a measure of aggregate or combined resource requirements of a particular scale of activity.
Total Costs
Is the measure of the total cost of production associated with each unit of output.
Average Costs
Is the measure of the resources associated with a small incremental change in output.
Marginal Costs
is the cost of “Sacrificing” other outputs/outcomes in favor of a chosen program
Oppurtunity Cost
These are costs that can be directly attributed to a specific output or product.
Direct Costs
These costs are incurred as a “Sacrifice” for being in an ill health, or in performing a health-producing activity.
Indirect Costs
These are costs attached to entities that we cannot touch and feel.
Intangible Costs
These are costs for items with a life expectancy of more than a year.
Capital Costs
These are costs necessarily incurred each year or each month.
Recurrent Costs
These are the effects of the health interventions for which the costs were incurred.
Outcomes
These are the “benefits” that individuals and society get in return for undertaking a certain activity.
Outcomes
Given a list of options and choosing the best from them all
Decision Making
To be able to do this, costs attached to the available options are measured against the health effects or benefits that they will produce.
Comparing costs with benefits
This type of economic evaluation technique is most frequently used.
Cost-Effective Analysis
It investigates the best way of achieving a single objective by comparing effects and costs.
Cost-Effective Analysis
It is a ratio that compares costs per health effect
Total Costs/Total Health Effect
This type of economic evaluation technique is a derivation of the CEA but focuses on the costs of different given alternative programs or intervention options.
Cost-Minimization Analysis
It assumes that regardless of whichever option is taken, the effects or the outcomes will be identical.
Cost-Minimization Analysis
This is another form of CEA but it differs slightly because it measures the effects of a project program in terms of Utilities.
Cost-Utility Analysis
Quality-Adjusted Health outcome caused or averted
Utility
They are measurements of outcomes that are “quality adjusted.”
Utilities
It measures the “efficiencies” of alternative programs - the ability to produce the health effects at the least cost.
Cost-Utility Analysis
It measures the “yield” of the alternative Health Interventions
Cost-Benefit Analysis
In summary, ______ _______ techniques are valuable tools in assessing the economic feasibility and efficiency of health interventions.
Economic Evaluation
“How much health benefit do we get for every peso we spend for these health interventions”
Cost-Benefit Analysis
How much money do we spend for every unit of health effect we want to get?
Cost-Utility Analysis
Two Basic Principles of Economic Evaluation
Decision Making and Comparing costs with benefits
The costs according to the behavior of costs
Total cost
Average cost
Marginal cost
Opportunity cost
The costs according to the relationship of costs to the product or service produced
Direct Costs
Indirect Costs
Intangible Costs
Costs according to the frequency of incurring costs
Capital Costs
Recurrent Costs
Cost Effective Analysis evaluates either:
Which possible intervention will best achieve a given objective at the last cost.
or
When given a fixed budget, which intervention maximized the effectiveness of the expenditure.
Economic Evaluation is used to provide a way o assessing whether:
Health resources are used optimally
Health programs are implemented efficiently
Health outputs are Maximized
