Healthcare Economics Flashcards
What are the six factors of healthcare economics?
Scarcity (demand>supply) Efficiency Equity (fair) Effectiveness (desired outcome) Utility (value someone puts on health) Opportunity cost (once money spent you can't spend it elsewhere)
Define opportunity cost
Value of next best alternative use of resources so cost is seen as a sacrifice-measured in benefits foregone
What is technical efficiency?
Is most effective way to meet need via GP or hospital
What is allocative efficiency?
Choosing between many needs of different patients
What is economic evaluation?
Comparison of resource implications and benefits of other ways to give care
What does economic analysis compare?
Inputs (costs) and outputs (benefits)
How can cost be measured?
Identify, quantify and value resources needed
-costs of services, patient time, care giving
How can benefits be measured?
Harder to measure
-impact on health status, savings in other resources, increased patient productivity
What are the four ways to compare cost and benefit?
Cost minimisation analysis
Cost effectiveness analysis
Cost benefit analysis
Cost utility analysis
What is cost minimisation analysis?
Outcomes assumed to be equivalent
Only focus on input
Pick cheapest option regardless of effect
What is cost effectiveness analysis?
Compare treatments with same health outcome to see if benefits higher in either
What is cost benefit analysis?
Inputs and outputs valued by money so can compare with outside interventions eg social care
What is cost utility analysis?
Focuses on quality of health outcomes produced or foregone
QALYs
What is a QALY?
Quality adjusted life year so 1 year of perfect health=1 QALY
Measure using questionnaire
Why do we need economic assessment?
Reality of limited resources becomes visible to public
Direct innovation into priority areas
Consistency in investment decisions
Exposes opportunity costs of new interventions
