14.health economics use of economic in the health and the impact on health.pptx

health economic Health Economics.
Branch Of Economics
Issues
Efficiency, Effectiveness, Value And Behavior
In
Production And Consumption
Of
Health And Health Care
All aware about how ill health and disease can affect economy of an individual and society, how financial limitations restrict provision and procurement of adequate medical care and health care. There are people engaged in the demand and supply of health like doctors, hospitals, medical colleges etc.
Health economics studies these institutions, the people engaged in them and their behavior as economic agents. Application of concepts, techniques and theories to the practical problems of rationalizing, the use of resources for the supply of effective health services in response to demand using modern management process and techniques.
Economics of health-
It deals with role of development and its provision to society. These areas encompass medical care industry. It mainly involves medical care industry; examples are analysis of economical cost of diseases, benefits of disease control programme etc.
Economics of health care services-
Most of the goods are public goods. This is one reason that one person derives the benefits, other derives it well. There are some measures taken by the government which benefit an individual, but apply to all. It deals with public welfare services. Examples are eradication of certain diseases, better sanitation etc.
Important issue that the government has to tackle, includes the determining of the budgetary provision for public health. Also, determining which section of the community is at more risk, calculating the risk, of risk reduction to the concerned individual societies.
ECONOMICS CAN ALSO BE ANALYSED FROM TWO ANGLES
• Positive Economics
It is the study of what is in the economy, it means statement of facts, relationship between facts and projection based upon facts.
For e.g. If facilities of safe disposal of excreta are provided to the community, there will be decrease in the spread of diseases through oral fecal route.
• Normative Economics
It is the study of what needs to be there in the economy which includes value judgement.
For e.g. We should eliminate poverty because many people cannot afford the cost of health care services or else government should provide free health services.


SOURCES FOR FINANCEMENT OF HEALTH CARE SERVICES
 Public Sources: Programs funded by State and Central Government.
 Private Sources: NGO, Corporate Sector and private bodies.
 Individual and household sources.
 External assistance.

ROLE OF NURSE IN HEALTH ECONOMICS
 Nurses need to understand basic economics principles to lower the rising health care costs.
 She must plan for future changes in health care financing by being aware of cost of nursing services & identifying aspects of care.
 Nurse should provide leadership in developing new models of care delivery.
 Nurse will contribute to improved decision marketing about allocating scarce health

1. Health economics By- Dr . Abhinav Bhatt DIPAL PATEL (S. Y. M.Sc. NSG )

2. Health Economics Health: Economics:

3. DEFINITION: Branch Of Economics Issues Efficiency, Effectiveness, Value And Behavior In Production And Consumption Of Health And Health Care

4. Types of Economics

5. Macro Economics : Study of total economic process rather than any one of its parts. It implies the study of process of production, consumption and distribution of goods and services for economy as a whole.

6. Micro Economics: It is the study of the consumption and production and distribution aspect of economic activity which is undertaken by an individual or a firm, or a group of these in so far as this group do not envelope the whole company. Phenomena such as relative prices of commodities and services, the individuals or the firm’s variation in the supply of their output or their demand for goods and service or factors of production are illustrative aspects of the study of microeconomics.

7. Cost: Definition : Economics defines cost as the value of resources used to produce something, including a specific health service or set of services. Knowing the cost effectiveness of a health intervention-the net gain in health divided by the cost can be extremely useful for both public and private decisions.

8. Benefit: In economic language “benefits” strictly speaking refers only to outcomes that can be measured in terms of money. Outcomes are: products and services (output), improved knowledge attitudes and practices (effects) and improvement in health status; reduction in morbidity and mortality and fertility, number of lives saved by a health intervention or life years (QALY)

9. CLASSIFICATION OF COST BY INPUTS:

10. Capital cost: Staff training

11. Recurrent cost:

12. COST: Opportunity cost: Marginal Cost: Average cost: Incremental Cost:

13. METHOD OF ECONOMIC EVALUATION:

14. METHOD OF ECONOMIC EVALUATION: Cost Minimization Analysis: (CMA) It compares the cost of different interventions that are assumed to provide equivalent benefits. Here the only the costs are compared not the benefit. In a health it is rare for two health care interventions to provide exactly the same benefit.

15. METHOD OF ECONOMIC EVALUATION: Cost Effectiveness Analysis: (CEA)   CEA= Cost No. of Lives saved Thus effectiveness measures that degree of attainment of predetermine objectives

16. METHOD OF ECONOMIC EVALUATION: Cost Utility Analysis: (CUA) ICER = Cost of A – Cost of B Effectiveness of A – Effectiveness of B

17. METHOD OF ECONOMIC EVALUATION: Cost Utility Analysis: (CUA) CUA = Cost QALY gained or DALY’s averted

18. METHOD OF ECONOMIC EVALUATION:     ICER = Cost of A – Cost of B Effectiveness of A – Effectiveness of B

19. Efficiency: It is output input ratio or efficiency is an expression of an relationship between the result obtained from health program or activity and the efforts expanded in terms of human financial and other resources, health processes and technology, and time. The assessment of efficiency is aimed at improving implementation.

20. QALY: Quality adjusted life years (QALY): it is a common measure of a benefit that combines quantity and quality of life. It is calculated by estimating the total number of life years gained from treatment and weighing the each year with a quality of life score to reflect the quality of life in that year. For example, a patient living for 10 years, but with quality of life of say, 0.7 on a scale of 0-1 (with 0 as death and 1 as perfect health), would live for seven (0.7 X 10 )QALYs

21. SCOPE OF HEALTH ECONOMICS: The scope of health economics is neatly encapsulated by Alan Williams' "plumbing diagram" dividing the discipline into eight distinct topics:

22. Alan Williams' "plumbing diagram" Health and its value Market equilibrium Influences health Demand for health care Supply of health Micro economic evaluation at treatment level Planning, budgeting & monitoring mechanisms Evaluation of whole system level A B C D E F G H