Scribd
Upload
84 views30 pages

Health Economics

This document provides an introduction to health economics. It discusses key concepts including that health economics is the study of costs, benefits, and resource allocation related to healthcare. It outlines the history of economics from Adam Smith to modern thinkers. It also describes core components of healthcare systems like medical care, health services, and determinants of health. Measurement techniques in health economics are also covered such as cost-benefit analysis. Principles of microeconomics and macroeconomics in relation to healthcare are introduced.

Uploaded by

Sophia Aliyah Miel Macabeo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
84 views30 pages

Health Economics

This document provides an introduction to health economics. It discusses key concepts including that health economics is the study of costs, benefits, and resource allocation related to healthcare. It outlines the history of economics from Adam Smith to modern thinkers. It also describes core components of healthcare systems like medical care, health services, and determinants of health. Measurement techniques in health economics are also covered such as cost-benefit analysis. Principles of microeconomics and macroeconomics in relation to healthcare are introduced.

Uploaded by

Sophia Aliyah Miel Macabeo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 30

INTRODUCTION TO HEALTH

ECONOMICS
BY: CHIELO THERESE E DUNGO, PTRP, NASM - CPT
ECONOMICS

• A social science that studies individual and group decisions on how to use scarce resources to satisfy
their wants and needs
HISTORY

ADAM SMITH (1723-1790) - Father of Modern Economics.


- “The Wealth of Nations”
- Division of labor, productivity and free markets
- If something in the market is in abundance, the market clears the excess supply by decreasing prices
to encourage sales.
- If there is a shortage of something, the market clears the excess demand by increasing the prices.
DAVID RICARDO (1772-1823)
- Theory of Comparative Advantage
- Principles of Political Economy and Taxation
KARL MARX (1818-1883)
- Communism
- Das Kapital (Capital - A Critique of Political Economy)
JOHN MAYNARD KEYNES (1883-1946)
- MACROECONOMICS
- The General Theory of Employment, Interest and Money
MILTON FRIEDMAN (1912-2006)
- Monetary phenomenon
- Capitalism and Freedom
- Advocate of free market
KENNETH ARROW (1921-2017)
- General Equilibrium Analysis and Social Choice Theory
- Uncertainty and the Welfare Economics of Medical Care
ALAN WILLIAMS (1927-2005)
- “Plumbing Diagram”
HEALTH ECONOMICS

• The specialized branch of economics devoted to the study of costs, benefits, resource allocation, use,
inputs , outputs and outcomes of all forms of health care
CORE CONCEPTS IN HEALTH ECONOMICS

• Resource Allocation
• Costs
• Benefits/Outcomes
• Inputs
• Outputs
• Outcomes
• Macroeconomics
• Microeconomics
Health
Determinants
Sector
Services

Medical Care
• Medical Care – resources and processes dedicated to the delivery of preventive and curative medical
services
• Health Services – activities that are intended to improve health
• Health Sector – part of economy, institutions and society that deals with the demand for health
• Determinants – Population, Environment, Economy, Education, Food, Water, Habitat
• Health – actual state of being; ideal value for one’s survival
MEDICAL CARE SECTOR

DEPARTMENT OF HEALTH (DOH) PHILIPPINE HEALTH CARE INSURANCE CORPORATION


- Aims to ensure that all Filipinos are easily accessed by quality public health services
- Overall technical authority on health
- Responsible for regulation of healthcare services and products in the country
PHILIPPINE HEALTH CARE INSURANCE CORPORATION (PhilHealth)
- RA No 7875 - National Health Insurance Act of 1995
- Provide a sustainable national health insurance for every Filipino. Universal health coverage
- Universal health does not cover all the expenses in the delivery of health services, rather made
accessible for everyone.
HEALTH

State of complete physical. Mental and social well-being and not merely the absence of disease or
infirmity (WHO)
Aspects:
- Physical Health
- Mental Health
- Social Health
Physical Health

- Pertains to the condition of the body and is considered critical to an individual’s overall well being.
- Factors that affect?
MICROECONOMICS

• Analysis of health care markets – demand, supply, price


• Individual’s behaviour (consumption) in response to price
• Market (firms) behaviour (supply of a good service) in response to price
GOVERNMENT ACTIONS IN HEALTH CARE MARKETS

• Provide – public hospitals, institutions; national immunization scheme


• Subsidise – Medicare rebates, pharmaceutical benefits scheme
• Regulate – prohibit (heroin, cannabis); regulation (age time barriers)
• Tax
MEASUREMENT OF “COST BENEFIT” IN HEALTH
ECONOMICS

• 3 basic measures
• Cost Benefit Analysis (CBA) – ratio of costs to events
• Cost Utility Analysis (CUA) – ratio of cost to some measure of utility
• Cost Effectiveness Analysis (CEA) – difference between monetary costs and monetary benefits
HEALTH TECHNOLOGY ASSESSMENT

• World Health Organization (WHO)


• Systematic evaluation of properties of health technology
• “ethical issues”
• Multidisciplinary process of evaluation
• Department of Health (DOH)
• Use of scientific evidence to assess the quality of health services
EQUITY AND HEALTH ECONOMICS

• For whom should we allocate scarce resources in health?


• Those who can afford to pay – market allocation
• Those who cannot afford to pay – market intervention
ETHICS AND HEALTH ECONOMICS

• Should the government bear the cost and provide access to health care?
• Scarce resources must be allocated: health policy decisions have consequences

• Health economics is a problem of constrained optimization


RELEVANCE OF HEALTH ECONOMICS

• 3 related ways:
• 1. The size of the contribution of the health sector to the overall economy
• 2. The national policy concerns resulting from the importance many people attach to the economic problems
they face in pursuing and maintaining their health
• 3. The many health issues that have a substantial economic element
ECONOMIC METHODS AND EXAMPLES OF ANALYSIS
FEATURES OF ECONOMIC ANALYSIS

• 1. Scarcity of societal resources


• 2. Assumption of Rational Decision Making
• 3. Concept of Marginal Analysis
• 4. Use of economic models
SCARCITY OF RESOURCES

• Economic analysis is based on the premise that individuals must give up some of one resource in order
to get some of another
• Economists view time as the ultimate scarce resource
RATIONAL DECISION MAKING

• Rationality - defined as “making choices that best further one’s own ends given one’s resource
constraints.”
MARGINAL ANALYSIS

• decision makers must understand the cost as well as the benefit of the next, or marginal, unit
USE OF MODELS

• described in words, graphs, or mathematics


EXAMPLES OF HEALTH ECONOMICS ANALYSIS

• Physicians, clinics, and hospitals use labor and machines just like other segments of the economy.
• Providers charge prices for the services
• Health sector is complicated
2 FEATURES OF HEALTH ECONOMICS IN RELATION TO
ECONOMIC ANALYSIS

• 1. Interdisciplinary nature of health research


• 2. The institutions in the health care system
• relations of doctors to hospitals
• the organization and practices of the health insurance industry
• licensing and certification of health care providers
PRINCIPLES OF ECONOMICS (MICROECONOMICS)

1. Decision/Choice
2. Scarcity of Resources
3. Opportunity Cost
4. Benefit/Cost
5. Specialization/Trade/Division of Labor
6. Market
PRINCIPLES OF ECONOMY WIDE
(MACROECONOMICS)

1. Fiscal Policy
1. Govt Expenses
2. Tax
2. Monetary Policy
Lets Continue Next Meeting!

You might also like