Health Economics Flashcards
Opportunity Cost
To spend resources on one activity means sacrifice in terms of lost opportunity cost elsewhere
- e.g. benefit lost from not funding the next best option.
Economic Efficiency
achieved when resources are allocated between activities in such a way to maximise benefit.
Measuring health benefit
Changing in something measured in natural units
- BP, pain score, number of cases detected, walking distance, cholesterol
Comparison in
Measuring health benefits
-QALY
quality adjusted life year
- combines length of life with quality of life
1 QALY- 1 year of perfect health
- 2 years of half perfect health
- generic measure
-allows comparison between disease
Equity
-Fairness/Justice in allocation of resources
-
Equity/ Efficiency Trade Off
Improving equity often decreases efficiency
e. g. funding treatments for rare diseases- takes money away from other more common diseases
- overall reduction in health and efficiency but is more equity.
Economic Evaluation
Assessment of efficiency
Comparison of cost and benefit of interventions
Measured in increments (differences)
Cost effectiveness analysis
outcomes measured in natural units
costs in monetary units
e.g. incremental cost per life year gained.
Cost utility analysis
Outcomes measured in QALYS
e.g. incremental cost per QALY gained
Cost-benefit analysis
Outcomes measured in monetary units
Cost-minimisation analysis
Outcomes (measured in any unit) are the same in both interventions, so minimise cost.
Incremental analysis
Everything is relative
Must always be a comparison
Incremental Cost Effectiveness Ratio
Difference in Costs / Difference in Benefits
Funding thresholds
NICE says –> £20, 000 per QALY- taking funding from else where- loss of a QALY from elsewhere
Conditions for Equity
age severity end-of-life rarity of condition causation innovation patient convenience (and choice) uncertainty- (do we really know what the ICER is?)
