Health economics Flashcards
Define allocative efficiency
how the current resources are being designated as opposed to how the resources could be optimised for the highest net positive impact of treatments
Define equity
‘fairness’ of a healthcare system (in relation to resource consumption and opportunity for resource consumption)
Define vertical equity
unequal treatment for unequals (eg. should individuals in socially-deprived areas receive more treatment?)
Define horizontal equity
equal access for equal needs
ensured via use of population-based formulas to allocate resources to geographical areas
What is a QALY?
quality-adjusted life year
healthy = score of 1
deceased = score of 0
e.g. living in a bed may have a score of 0.5, so providing a patient with an extra 20 years of life, therefore considered 10 QALYs (state rating x years in state (0.5x20))
Define scarcity
when needs for a resource is higher than the availability of the resource
Define priority rationing
when there are insufficient resources to meet demand, deciding what populations receive the resources and which go without
Define opportunity cost
the complete benefits that are lost when choosing one alternative over another
Define margin
the change in costs/benefits when deciding on resource allocation in healthcare
Define incremental analysis
the different in cost between two options, in relation to outcomes of both options
What are the 4 methods of evaluation?
cost-minimisation analysis
cost-effectiveness analysis
cost-utility analysis
cost-benefit analysis
Describe cost-minimisation analysis
compares the costs (such as treatment and hospital care) and the consequences (such as health outcomes) of a test or treatment with a suitable alternative. (Intervention B) - (Intervention A) If positive, keep initial intervention If negative, adopt new intervention If 0, consider other factors
Describe cost-effectiveness analysis
compares an intervention to another intervention by estimating how much is costs to gain a unit of a health outcome, such as a life year gained, or a death prevented
Only one outcome considered at a time.
((Cost B) - (Cost A)) / ((Effect B) - (Effect A)) = Incremental Cost Per Outcome
Describe cost-utility analysis
measures health effects in terms of both quantity and quality of life
these are combined into a single measure of health (QALYs)
((Cost B) - (Cost A)) / ((QALY B) - (QALY A)) = Incremental Cost Effectiveness Ratio (ICER)
Describe cost-benefit analysis
a comparison of interventions and their consequences in which both costs and resulting benefits are expressed in monetary terms
