health economics Flashcards
what is a fundamental factor to considers in economics
scarcity
define economics
the study of the choices made by individuals and societies in terms of alternative uses of resources which are employed to satisfied wants
3 key concepts of economics
1) opportunity cost
2) efficiency
3) marginal analysis
define marginal analysis
the amount of resources which is just right
define oppurtunity cost
value of something when a particular course of action is chosen
1) how much value the option chosen has balanced with the losses faced from the option not chosen
what does a smaller oppurtunity cost mean
you have made the right choice
the losses are minimal for the activity which is not chosen
define quality adjusted life years
A measure of the output of health care that can measure ALL types of health effect.
define economic evaluation
comparison of two or more alternative courses of action in terms of their costs and their outcomes.
what 2 points must be considered in determining economic evaluation
1) ensure that the value of the outputs from an activity is greater than the value of the resources consumed by the activity.
2) Provide information about how much it costs per unit of health gain to choose one course of action over another.
define efficiency
maximising the benefit for the resources used
define technical efficiency
meeting a given objective at least cost
define allocative efficiency
producing the output (supply) that matches consumer want (demand)
what is marginal analysis also known as
" the next step" incremental step (a little bit more) decremental step ( a little bit less)
define marginal benefit
the benefit from the “next step”
define marginal cost
the cost of taking the next step
what are the 3 types of economic evaluation
1) cost effectiveness analysis
2) cost utility analysis
3) cost benefit analysis
define cost effectiveness analysis
1) benefits measured in terms of standard clinical outcome e.g. change in blood pressure
what 2 factors does Cost Utility Analysis consider
quality + quantity of life
what factors does cost benefit analysis consider.
considers resource use and health benefits in monetary terms.
Define cost effectiveness threshold
maximum amount the health service will pay per unit of health gained
define option appraisal
process for identifying, describing and evaluating alternative methods (options) of achieving an agreed objective.
what is the first step in option appraisal
identify objective
what are the 7 key steps of option appraisal
1) Define objective and constraints
2) Identify and describe the options
3) Identify and quantify monetary costs and benefits of each option
4) Assess risks of each option
5) Identify and quantify (if possible) non-monetary costs and benefits of each option
6) Weigh non-monetary costs and benefits of each option
7) Assess balance of advantage between options
what are the main constraints in a research project
- time
- budget
- skill level (do you have the adequate skill level)
- legal (ethical constraints)
