L07: Health Economics Introduction And Overview

Question 1

What does scarcity mean

Answer 1

Lack of resources

Question 2

What does a economic analyses help us to decide on

Answer 2

Choices concerning scarcity

Question 3

What are the 2 stances an economic analyses can indicate or predict

Answer 3

Normative stance

Positive stance

Question 4

What is a normative stance

Answer 4

Indicates The nature of the resource allocation decision that is followed if certain objectives are achieved

Question 5

What is a positive stance

Answer 5

Predicts the observable factors and provide the information on the likely costs and benefits associated with alternative courses of action

Question 6

What is the opportunity dose

Answer 6

The benefits you have lost by not spending the resource in the other way

Question 7

What is a technical efficiency

Answer 7

Producing an output in the best way possible without wasting scarce resources
You meet the objective at a low cost

Question 8

What is an allocative efficiency

Answer 8

Producing an output that best statisfies the consumers wants/needs

Question 9

What is the definition of economic evaluation

Answer 9

A comparative analysis of alternatives courses of action in terms of costs and consequences

Question 10

What are the 5 main types of economic evaluation

Answer 10

Cost consequence analysis 
Cost effectiveness analysis 
Cost minimisation analysis 
Cost utility analysis 
Cost benefit analysis

Question 11

What are the outcomes that are measured in a cost effectiveness analysis

Answer 11

Lives saved
Or
Increased survival

Question 12

What are the outcomes measured in a cost utility analysis

Answer 12

Quality adjusted life years (QALYs)

Question 13

What is an incremental approach in economic evaluation

Answer 13

The difference in costs and difference in consequences when comparing 2 different options

Question 14

What is a marginal benefit

Answer 14

The increase in benefit as a result of increasing the production by one additional unit

Question 15

What is the marginal cost

Answer 15

The increase in cost as a result in increasing the production by one additional unit

Question 16

What is the incremental cost effectiveness ratio

Answer 16

The ratio between the difference in costs (of 2 options) over difference in cosequences (of 2 options)

Question 17

What does the incremental cost effectiveness ratio calculate

Answer 17

Cost per extra unit of benefit

Question 18

Write down the equation for ICER

Answer 18

Difference in cost/ difference in consequence = (cost b-a)/( benefit b-a)

Question 19

What is the cost effectiveness plane

Answer 19

A graph of effect against cost difference

Question 20

When does NICE consider an new intervention to be cost effective

Answer 20

If the cost of QALY is less than 20’000 per QALY

Question 21

What is the key objective of economic analysis

Answer 21

Promote efficient use of health care resources

Ensure maximum total benefit is derived from the resources available

Question 22

What is an opportunity cost

Answer 22

The benefit lost by not doing the other thing with the resource

Question 23

What is an economic evaluation

Answer 23

A COMPARATIVE analysis of cost and consequence

Question 24

On a cost effectiveness plane which intervention would you consider

Answer 24

When it is least colts and most effective than the comparator

Question 25

When would you not consider an intervention on the cost effectiveness 0plane

Answer 25

When it is costly and less effective than the comparator

Question 26

Which other outcome of a new intervention would require further considering on a cost effectiveness plane

Answer 26

When it is costly but effective

Question 27

What does a cost consequence analyses look at

Answer 27

Summaries the costs and consequences of the 2 interventions/comparators

Question 28

What are the advtanges of using a cost consequence analysis

Answer 28

You can see all the outcomes | In natural terms

Question 29

What are the disadvantages of cost consequence analysis

Answer 29

Assumes decision maker capacity There is no indication of important outcomes Decision rule requires dominance

Question 30

In a cost benefit analysis what is the outcome measured in

Answer 30

Monetary units

Question 31

Do we proceed with an intervention if the benefit exceeed the cost in a cost benefit analysis

Answer 31

Yes

Question 32

When do we not proceed with the intervention in a cost benefit analysis

Answer 32

When the cost exceeds the benefit

Question 33

What type of approach does a cost benefit have

Answer 33

Welfarist approach

Question 34

What is the outcome of the cost effectiveness analysis measure

Answer 34

Effect of the intervention

Question 35

What are the units of the outcome of a cost effectiveness analysis

Answer 35

Natural units e.g hospital days, lives saved, complications avoided.

Question 36

Which option is chosen in a cost minimisation an always is

Answer 36

The least costly option is the most effienct

Question 37

What are the outcomes of a cost utility analysis

Answer 37

QALYs gained

Question 38

Which organisational group uses the cost utility analysis

Answer 38

NICE

Question 39

What does the cost utility analysis measure

Answer 39

Health

Question 40

Which 3 economic analysis have a extra welfarist paradigm

Answer 40

Cost effectiveness analysis Cost minimisation analysis Cost utility analysis