Resource Allocation And Health Economics

Question 1

Name the 2 forms of rationing

Answer 1

1 - Explicit

2 - Implicit

Question 2

Define explicit rationing

Answer 2

Distribution of resources based on defined rules of entitlement

Question 3

Define implicit rationing

Answer 3

Distribution of resources through individual clinical decisions without the criteria for those decisions being explicit

Question 4

Name 4 analyses in which costs and benefits can be compared

Answer 4

1 - Cost minimisation
2 - Cost effectiveness
3 - Cost benefit
4 - Cost Utility

Question 5

What is the equation to work out Quality of Adjusted Life Years (QALY)

Answer 5

QALY = Quality of life x Quantity of life

E.g. 0.5 x 3 years = 1.5 QALYs

Question 6

Define cost minimisation

Answer 6

• Outcomes are assumed to be equivalent

- Focus on driving the lowest cost

Question 7

Define cost benefit analysis

Answer 7

Inputs and outputs valued solely in monetary terms

Question 8

Describe cost effectiveness analysis

Answer 8

Comparison of interventions in terms of cost per unit outcome

Question 9

Describe cost utility analysis

Answer 9

• Type of cost effectiveness analysis

- Focus on quality of health outcomes