Introduction to health economics

Question 1

What is health economics

Answer 1

Branch of economics to improve decision-making in health and healthcare

Question 2

What does efficiency mean in terms of health economics

Answer 2

maximising the benefit gained from resource expenditure

Question 3

Value for money

Answer 3

– most gains (benefits) for the least cost

Question 4

Direct costs

Answer 4

the monetary costs of providing that treatment, service delivery, health policy

medical costs – e.g., nurse time, cost of medication, lab tests, no of clinic visits

non-medical costs – e.g., building rent, transport, photocopier

Question 5

Indirect costs

Answer 5

societal costs – e.g., absence from work, loss of employment

Question 6

Opportunity costs

Answer 6

The loss of the potential benefits you might get from another options when you choose one option
E.G if you chose a two hours of biomedical sciences instead of two hours of public health teaching.

Question 7

Quality adjusted Life Year (QALY)

Answer 7

takes into account the preference for a specific health status associated with an extra year of life