Health Economics

Question 1

How can health benefits be measured?

Answer 1

1. natural units - BP/pain score/no. of cases detected
2. Quality adjusted life years
3. Monetary value

Question 2

What is a quality adjusted life year? (QALY)

Answer 2

combines length of life with quality of life
length (years) x quality (utility)

allows comparison across diseases

Question 3

What are the 4 types of economic evaluation?

Answer 3

1. cost-effectiveness analysis
2. cost-utility analysis
3. cost-benefit analysis
4. cost-minimisation analysis

Question 4

What is the cost-effectiveness analysis?

Answer 4

Outcomes measured in natural units

e.g. incremental cost per life year gained

Question 5

What is cost-utility analysis?

Answer 5

outcomes measured in QALYs

e.g. incremental cost per QALY gained

remember because the name fo quality of life in the QALY equation is utility

Question 6

What is the cost-benefit aanlysis?

Answer 6

putcomes measured in monetary units

e.g. net monetary benefit

Question 7

What is cost-minimisation analysis?

Answer 7

outcomes (measured in any units) are the same in both treatments

therefore, just minimise the cost

Question 8

What is incremental analysis?

Answer 8

everything is relative

there must always be a comparison:
new drug vs old drug
new tx vs watch and wait
new surgical option vs medical tx

Question 9

What is a funding threshold?

Answer 9

when a new treatment is funded, another tx somewhere else in the NHS needs to have its funding stopped to pay for it

the NHS funding threshold is £20,000 per QALY so the new treatment must cost less than this

Question 10

What are the 3 main models of financing healthcare?

Answer 10

1. publicly-funded health systems
2. social insurance funded health systems
3. privately funded health systems