Healthcare Economins Flashcards
What is opportunity cost?
once you have used a resource in one way you no longer have it to use in another way
What is technical efficiency?
You are interested in the most efficient way of meeting a need
What is allocative efficiency?
You are choosing between the many needs to be met
How do you measure costs?
Costs of healthcare services,
costs of pts times,
costs associated with care-giving,
illness costs
How do you measure benefits?
Impact on health status,
savings in other healthcare resources,
improved productivity if pt/family returns to work earlier
What are the 4 types of economic evaluation?
Cost minimisation analysis,
cost effectiveness analysis,
cost benefit analysis,
cost utility analysis
Outline a cost minimisation analysis
Outcome assumed to be equivalent, focus on costs – but not often relevant as outcome rarely equivalent
Outline a cost effectiveness analysis
Used to compare drug/intervention costs which have common health outcome – is extra benefit worth the extra cost?
What is a cost benefit analysis?
Inputs/outputs valued in monetary terms, methodological diffs (putting monetary value on non-monetary benefits)
What is a cost utility analysis?
Focuses on quality of health outcome prod or foregone
measure is quality adjusted life year (QALY)
interventions compared in cost per QALY
What is QALY?
Quality adjusted life year:
NICE use it to determine cost-effectiveness of treatment.
1 year perfect health = 1 QALY
1 QALY = 2 years at 50% QOL for 1 person.
1 QALY = 6 months healthy life for 2 people
What are the criticisms of QALY?
Do not distribute resources according to need,
may disadvantage common conditions,
technical probs with calculations,
may not embrace all dimensions of benefits,
do not assess impact on carers/family
