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HES > Health economics > Flashcards

Health economics Flashcards

1
Q

What is the purpose of economic analysis?

A

Aids decision making regarding resource scarcity. It indicates the nature of the decision to be followed for a certain outcome or can predict observable facts about costs and benefits of alternatives. Promotes efficient use and ensures maximum total benefit for resources available. It considers supply, demand, cost effectiveness and equity.

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2
Q

What is the purpose of economic analysis?

A

Aids decision making regarding resource scarcity. It indicates the nature of the decision to be followed for a certain outcome or can predict observable facts about costs and benefits of alternatives. Promotes efficient use and ensures maximum total benefit for resources available. It considers supply, demand, cost effectiveness and equity.

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3
Q

What is opportunity cost?

A

The value of the consequences forgone by choosing to use resources in one way rather than their best alternative.

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4
Q

What is technical efficiency?

A

Producing an output in the best way without wasting limited resources and meeting its objective at the least cost e.g. choosing the right condition to treat and the best method for it.

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5
Q

What is allocative efficiency?

A

Producing outputs that best satisfy the consumers wants and needs.

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6
Q

What happens during an economic analysis?

A

Compares alternative actions in terms of costs and consequences

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7
Q

What is cost effective analysis?

A

Chosing 1 outcome of natural units to decide the cost per unit of an action

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8
Q

What may a natural unit be?

A 
Lives saved
Survival rate
Inpatient days
QoL
Morbidity
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9
Q

What is cost utility analysis?

A

Expresses value for money in terms of QALYs (Quality adjusted life year)

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10
Q

What is the NHS threshold for a QALY?

A
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11
Q

What is cost consequence analysis?

A

Requires no analysis as the option is clear with lower cost and better outcomes.

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12
Q

What is cost minimum analysis?

A

When two outcomes are the same, the one that is cheapest is chosen

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13
Q

What is cost benefit analysis?

A

The cost people are willing to pay for non-health benefits

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14
Q

What is the incremental approach (aim to make changes) to analysis?

A

Compares costs and consequences of two options to allow new interventions to be compared to current. The comparison can be to do nothing.

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15
Q

What is marginal benefit?

A

The additional satisfaction/benefit experienced as a result of receiving one additional unit of the service. The satisfaction shows the maximum amount willing to be payed for the additional unit.

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16
Q

What is marginal cost?

A

The increase in cost as a result of receiving one additional unit. Used to decide whether to increase a service further or not e.g. detection, cure

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17
Q

How does cost-effective analysis decide the best treatment method?

A

Based on the incremental cost-effectiveness ratio (ICER). The ratio produces a cost per extra unit of benefit. The treatment chosen must either dominate or have a beneficial ICER ratio. Considered cost effective if

18
Q

What is the calculation for ICER?

A

ICER = Difference in costs / Difference in consequences

19
Q

Will the following treatments be used if they:

  • Cost more, less effective
  • Cost more, more effective
  • Cost less, less effective
  • Cost less, more effective?
A
  • Dominated so not used
    -Requires ICER
  • Requires ICER
  • Dominates so is used due to cost consequence analysis
    Cost Y axis, Effect X axis
20
Q

What is equity?

A

Being fair and impartial to ensure more equal distribution in outcomes. Fair distribution and financial burden.

21
Q

What is horizontal equity?

A

Equal access for equal needs.

All receive equal for those with equal health needs despite demographics.

22
Q

What is vertical equity?

A

Treating according to differential need.

23
Q

What is opportunity cost?

A

The value of the consequences forgone by choosing to use resources in one way rather than their best alternative.

24
Q

What is technical efficiency?

A

Producing an output in the best way without wasting limited resources and meeting its objective at the least cost e.g. choosing the right condition to treat and the best method for it.

25
Q

What is allocative efficiency?

A

Producing outputs that best satisfy the consumers wants and needs.

26
Q

What happens during an economic analysis?

A

Compares alternative actions in terms of costs and consequences

27
Q

What is cost effective analysis?

A

Chosing 1 outcome of natural units to decide the cost per unit of an action

28
Q

What may a natural unit be?

A 
Lives saved
Survival rate
Inpatient days
QoL
Morbidity
29
Q

What is cost utility analysis?

A

Expresses value for money in terms of QALYs (Quality adjusted life year)

30
Q

What is the NHS threshold for a QALY?

A

< £25,000 per extra year

31
Q

What is cost consequence analysis?

A

Requires no analysis as the option is clear with lower cost and better outcomes.

32
Q

What is cost minimum analysis?

A

When two outcomes are the same, the one that is cheapest is chosen

33
Q

What is cost benefit analysis?

A

The cost people are willing to pay for non-health benefits

34
Q

What is the incremental approach (aim to make changes) to analysis?

A

Compares costs and consequences of two options to allow new interventions to be compared to current. The comparison can be to do nothing.

35
Q

What is marginal benefit?

A

The additional satisfaction/benefit experienced as a result of receiving one additional unit of the service. The satisfaction shows the maximum amount willing to be payed for the additional unit.

36
Q

What is marginal cost?

A

The increase in cost as a result of receiving one additional unit. Used to decide whether to increase a service further or not e.g. detection, cure

37
Q

How does cost-effective analysis decide the best treatment method?

A

Based on the incremental cost-effectiveness ratio (ICER). The ratio produces a cost per extra unit of benefit. The treatment chosen must either dominate or have a beneficial ICER ratio. Considered cost effective if

38
Q

What is the calculation for ICER?

A

ICER = Difference in costs / Difference in consequences

39
Q

Will the following treatments be used if they:

  • Cost more, less effective
  • Cost more, more effective
  • Cost less, less effective
  • Cost less, more effective?
A
  • Dominated so not used
    -Requires ICER
  • Requires ICER
  • Dominates so is used due to cost consequence analysis
    Cost Y axis, Effect X axis
40
Q

What is equity?

A

Being fair and impartial to ensure more equal distribution in outcomes. Fair distribution and financial burden.

41
Q

What is horizontal equity?

A

Equal access for equal needs.

All receive equal for those with equal health needs despite demographics.

42
Q

What is vertical equity?

A

Treating according to differential need.

HES (18 decks)

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