Essay Health Economics - 2827 Words

Cost-benefit, cost-effectiveness and cost-utility analyses are forms of economic evaluation which are useful in health economics for comparing costs and allocating resources. Health economics is widely relevant to governments and the health sector in implementation of new policy, as it concerns the allocation of resources in the context of a limited budget, or scarcity. Economic evaluation is a potential tool for setting priorities in health, though it is only one of many potential criteria, including overall budget and public attitudes and wants. Economic evaluation is already in use in some settings, such as in pharmaceutical company proposals for government subsidisation, but there is room for expansion across the field of†¦show more content†¦Changing factors such as aging populations and new technologies becoming available are increasing expectations from people throughout the world, and decision makers must make rational choices to maximise benefits to population healt h whilst working with limited resources. Yothasamut et al (2009) summarise this by observing that health care resources in every setting are always constrained, while unlimited demand is observed. The best choices in the context of economics are the ones which maximise utility (individual satisfaction through consumption of goods) and welfare, the sum utility experienced by all individuals in society. Decision makers often have to seek satisfactory rather than optimal solutions, also known as working with bounded rationality (Simon 1957 in Williams et al 2008), as it is important to pursue both efficiency and equity in the funding of health care. Therefore, it may be unsuitable to fund the most cost effective option if it sacrifices the equal distribution of benefits. Research in health economics can take a normative or positive approach and this reflects the balance needed between cost control and equity when making economic decisions. Positive economic research and analysis is con cerned with how things are and seeks to explain economic phenomena, whilst normative economic research and analysis is concerned with how things ought to be and relies on valueShow MoreRelatedEconomics and Health Care1520 Words   |  7 Pagesturn leads to market failure. * Third-party payers is another reason because inefficiencies arise as a result of consumers not spending their own money. The majority of the expenses are paid by third parties, primarily health insurance companies and the government since health costs are usually too expensive for the middle to lower class who are usually more likely to become ill. 1B. In the real world, a perfectly competitive market rarely exists. One or more assumptions are violated in mostRead MoreHealth Economics1683 Words   |  7 PagesHSA 500 Health Services Organization Janeen Whiteside-Harris Professor: Dr. Maryjane Granoff October 24, 2012 United States (U.S.) Health Care System (HCS) Requirements are to write a three to four page paper covering the following: 1. Identify and evaluate at least three forces that have affected the development of the health care system in the U.S. 2. Speculate whether or not these forces will continue to affect the health care system in the U.S. over the next decadeRead MoreHealth Economics1189 Words   |  5 PagesHISTORY OF HEALTH INSURNCE I stopped for a moment to imagine an average Americana’s world without a health insurance, what will become of such individual when the need for healthcare beckons? How will such individual offset the outrageous bill of healthcare? Health insurance is used in America to describe any program that helps pay for medical bills through the following: privately purchased and social insurance or a social welfare program usually powered by the government. Simply put, health insuranceRead MoreStatement Of Scholarship In Health Economics823 Words   |  4 Pagesto express my interest in the PhD scholarship in Health Economics at Monash University which was advertised in seek career website on 14th September 2017. I am a graduate from Curtin University who completed Master of Health Administration. While I was doing my postgraduate studies, I decided to do my dissertation in the field of Economics, focusing on Health Economics. The topic of my postgraduate dissertation was â€Å"Trends in income-related health inequalities in Australia†. The source of the dataRead MoreEssay about Health Economics741 Words   |  3 PagesFebruary 10, 2015 This memorandum will use Grossman’s model of production of health to evaluate how New York City’s new sick leave law will affect emergency room use. Grossman’s model states that a person utility is based on health (H) and other non-health related goods (Z) that the person consumes. The production possibility frontier for Grossman model shows the tradeoff between home good production (Z) and health (H). Unlike usual production possibility frontiers, an individual needs an optimalRead MoreEconomics : The Financing Of Health Care1379 Words   |  6 Pages Thomas Gordon Healthcare Economic History ECONOMICS: THE FINANCING OF HEALTH CARE March 2, 2016 Lena Watson Health Care History The United States HealthCare System is pushing and getting ready to have a huge reformation. It is evolving on a major substantial evolution from its organization, management structure, and payment structure. The economic component of healthcare is equally important to better understanding the order to structure stature and is very successful. InRead MoreImplications Of Health Economics Concepts For Healthcare1712 Words   |  7 PagesImplications of Health Economics Concepts for Healthcare Chandra Chisholm Strayer University HAS 510 Dr. David Tataw May 3, 2015 Value of Healthcare Professionals Healthcare is getting gradually complex around the world. The need for technological development, economic support, demographics changes and the study of diseases are shifting at a fast speed. There had been numerous labors in describing collective capabilities and values within the healthcare organizations. It is necessaryRead MoreSocio Economic Class And Health Inequality1174 Words   |  5 PagesSocio-economic class has been linked to health inequality ever since the mid-19 century, when reported the living condition of the poor. Chadwick, E.1842 reported that the average life expectancy in Bethnal Green was 45 for professional but only 16 for labourers. Concern about inequality within the population in the early 20th century was offered as one major justification for the setting up of National Health Service (NHS) based on the recommendation of the Beverage report (1942). The health inequalityRead MoreUnderstanding The Value Of Health Economics811 Words   |  4 PagesUnderstan ding the value of health economics is very important during this rapidly changing environment. Health economics is the study of how transactions or connections between health and the resources needed are made and of the bottom line results (Getzen, 2013). Resources include money but also people, materials and time that could have been used in other ways. Our healthcare needs may be unlimited but the resources we have to satisfy them are not. We must make careful choices about which needsRead MoreHealth Economics And Policy Questions2412 Words   |  10 Pages Health Economics and Policy Coursework Question 2 SN: 13026885 a) w=  £62,500 U= √w 50% chance of medical problem Costs of  £4,900 We can derive this individual’s expected wealth if we multiply the probability of each outcome with the associated costs. E(w) = 0.5 *  £62,500 + 0.5 * ( £62,500 -  £4,900) E(w) = 0.5 *  £62,500 + 0.5 *  £57,600 E(w) =  £60,050 To find out what level of utility will this individual’s expected wealth yield, we simply have to put the value of the E(w) in the utility