Resource Allocation Flashcards
What are the problems with new medical technology?
Often very expensive and expands pool of candidates - how do we choose?
Often don’t cure but increase survival - more costs
What are the 2 forms of rationing?
Explicit
Implicit
Describe explicit rationing
Based on defined rules of entitlement
Describe implicit rationing
Care is limited
‘Gate keeper’ decision
The decisions, nor the bases for the decisions, are clearly expressed
What are the advantages to explicit rationing?
Transparent, accountable
Opportunity for debate
More clearly evidence based
More opportunity for equity
What are the disadvantages of explicit rationing?
Very complex Heterogeneity of pts and illnesses Pt and professional hostility Impact on clinical freedom Some evidence of pt distress
What are the 6 basic concepts of health economics?
Scarcity Efficiency Equity Effectiveness Utility Opportunity cost
What is utility with regards to health economics?
The value an individual places on a health state
What is technical efficiency?
The most efficient way of meeting a need
Decide the outcome then work out the best way to get there
What is allocative efficiency?
You are choosing between the many needs to be met
Deciding an outcome
What are the categories of health cost?
Costs of health care service Pts time Costs associated with care giving Other costs associated with illness Economic costs of employers/society
What are the 4 types of economic evaluation?
Cost minimisation analysis
Cost effectiveness analysis
Cost benefit analysis
Cost utility analysis
Describe cost minimisation analysis
Outcomes assumed to be equivalent
Focus is on costs (only inputs)
Best value to reach outcome
Often not relevant as outcomes rarely equivalent
Describe cost effectiveness analysis
Compare drugs/interventions which have a common health outcome
Cost per unit
How much extra benefit for the extra cost?
Describe cost benefit analysis
All inputs and outputs valued in monetary terms
Allows comparison with things outside health care
‘Willingness to pay’ often used
