Health Economics Flashcards
Concepts of efficiency
Technical
Productive
Allocative
Technical efficiency
Effectiveness of resources to achieve a positive health outcome
A technically inefficient outcome is when the positive health outcome is achieved with less resources
Productive efficiency
Comparison of alternative interventions based on the relative cost of the resources used
Minimise cost of intervention OR maximise possible outcome
Allocative efficiency
Measuring the allocation of resources to individuals who would benefit most from the intervention/treatment
Must consider productive efficiency
Economic cost
Financial cost AND time, effort, and energy involved in delivering outcome
Opportunity cost
The forgone benefits of the next best alternative use of resources
Methods of economic evaluation
Cost-effectiveness analysis (CEA)
Cost-utility analysis (CUA)
Cross-benefit analysis (CBA)
CEA
Measures outcomes
Example - future cases prevented; years of life saved
CUA
Based on utility —> quantitative measure (relates to technical efficiency)
Measured by QALYs
QALYs
Quality Adjusted Life Years
CBA
Benefits of intervention are valued in monetary terms
Example - willingness to pay (WTP)
What is cost analysis used for
To determine the value of the treatment
Stages of cost analysis
Identification
Measurement
Validation
Identification - cost analysis
What resources might be affected by the programme/treatment?
Measurement - cost analysis
How will we monitor the levels of resource use?
