Health Economics

Question 1

What is the basic economic problem for health services?

Answer 1

1) Finite resources –> Scarcity
2) Infinite desire for resources
3) No country able to treat all treatable ill health
4) Choice can’t be avoided

Question 2

What is economic efficiency?

Answer 2

When resources allocated between activities for maximum benefit

Question 3

What is economic evaluation?

Answer 3

Assessment of whether benefit is maximised (assessing efficiency)

Question 4

What are the 3 sub types of economic evaluation?

Answer 4

1) Cost-effectiveness analysis
2) Cost-utility analysis
3) Cost-benefit analysis

Question 5

Explain each of sub types?

Answer 5

1) C-E: Outcome measured in natural units (Incremental cost per year of life gained)
2) C-U: Outcome measured in QALY, incremental cost per QALY gained
3) C-B: Outcome measured in monetary units (Net monetary benefit)

Question 6

What is equity?

Answer 6

Fairness/justice of distribution of costs and benefits

Question 7

What is problem with equity?

Answer 7

Opposing views over what is/isn’t fair –> Difficult to quantify and subjective