Health Economics
WHAT IS HEALTH ECONOMICS?Overview
Healthcare costs are increasing while financial resources available to support health care interventions are limited. This makes it crucial to objectively evaluate the outcomes derived from each funded intervention. Health economics provides the tools and approaches to identify how health care interventions contribute to health outcomes based on the resources invested. It helps organizations answer questions like:
What is the relative contribution of each implemented intervention?
How much is a year of good health worth?
How can we measure the value of effectively preventing illness?
How can we estimate the value of the community's preferences in healthcare, such as being close to loved ones or receiving culturally appropriate treatment?
What kinds of interventions can be studied?
Health care interventions include not only pharmaceuticals, surgical interventions, and medical devices but also public health programs and organizational systems.¹ Health economics tools and approaches can be used to study:
Interventions provided in health-care services (medications, procedures, or medical devices)
Interventions applied to health-care systems (organization of services, delivery, access, and financing)
Interventions outside the health-care system (policies, regulations, and conditions at the societal or environmental level)
Velasco et al. Health Technology Assessment and Health Policy-Making in Europe. Current Status, Challenges and Potential; 2008.
How do we analyze data?
We work with health care teams to identify the best analytic approach based on their available data and program goals. Some of the different analyses include:
Economic Evaluations (Cost-effectiveness analysis, Cost-utility analysis, Cost-benefit analysis)
Cost analysis
Return on investment
Marginal Analysis
Economic modeling
Health Economics Benefits:
Transparency
Encourage public participation and use transparent decision-making frameworks.
Community Engagement
Involve your community and the people you serve to improve accuracy and equity.
Maximize Benefits
Measure quality of life in addition to clinical outcomes while ensuring efficient use of resources.
MULTI-FACETED ASSESSMENTIn Closing
These analyses provide decision-makers a holistic view of healthcare interventions, incorporating both quantitative and qualitative factors. By evaluating a wide range of interventions, from individual treatments to system-wide changes, healthcare organizations can make more informed choices that balance economic considerations with community needs and preferences. This multi-faceted assessment strategy ultimately leads to more efficient resource allocation and improved health outcomes for the population served.