Health Economics

Question 1

List ways of reducing NHS drug costs without reducing quality

Answer 1

Reduce wastage
Increase generic prescribing
Deregulation of drugs

Question 2

What is economic evaluation?

Answer 2

Compares the costs and benefits of two or more alternative interventions

Question 3

What are the two types of cost?

Answer 3

Fixed and variable

Question 4

Define direct cost

Answer 4

Costs incurred by the health service

Question 5

What is direct non medical cost?

Answer 5

Patients out of pocket expenses

Question 6

What are indirect costs?

Answer 6

Friction costs
Time off work
Early retirement

Question 7

What are intangible costs?

Answer 7

Anxiety, pain or suffering from an illness or from a treatment

Question 8

Define incremental cost

Answer 8

Difference in overall costs between running a service and not running it

Question 9

What is marginal cost?

Answer 9

Cost of doing one more intervention

Question 10

What are the 4 outcome categories used in economic evaluation?

Answer 10

Effectiveness
Quality of life
Utility
Expressing benefit as monetary values