intro to health economics Flashcards
(30 cards)
health economics definition
the application of discipline and tools of economics to the subject matter of health
cost benefit analysis definition
compare monetary value of benefit to cost
cost effectiveness analysis definition
which option achieves the desired outcome most efficiently
cost minimisation analysis definition
which option has the lowest cost
cost utility analysis definition
which option is the most efficient way to increase QALYs
what are the 4 principles of health economics
resources are finite
wants/needs are potentially infinite
choices should be made as we don’t have the reosurces to do everything
economists look at costs and benefits of alternative patterns of resource allocation
what is opportunity cost?
the value of the benefit forgone because by spending the resource in one way, the next best alternative can no longer be provided
what is implicit rationing
care is limited, but neither decisions nor the bases for those decisions are clear, as is the reasoning behind the reasoning for those decisions
what is explicit rationing
care is limited, and the decisions are clear as is the reasoning for them
what is economic evaluation?
the comparitive analysis of alternative courses of action in terms of both their costs and consequences
estimations of costs and effects
what should economic evaluation always compare and why?
healthcare programme with an alternative
measures the benefits produced by the alternatives, measures the costs to provide alternatives
results should include benefits and costs
what is a QALY?
quality adjusted life year
multidimensional as to capture aspects of health allowing for comparison between treatments
combine quality and length of life
weigh different aspects of health to allow comparisons
1 qALY is a full year in health
what does ICER stand for?
incremental cost effectiveness ratio
(cost per QALY)
how is the ICER used
compare ICER to the cost effectiveness threshold to show value for money
if the QALY costs less than 20000£ it is deemed good value for money by NICE
what are costs for health sectors
all costs of programme being considered, including cost of initial programme and costs incurred or saved as a result of the programme
what are costs for patients and families?
out of pocket expenses
OTC medications
equipment
fares
time of patient and or informal carers
could be work or leisure time
should productivity costs be included in economic evaluation?
dependent upon viewpoint
potential double counting - morbidity costs are argued to be captured by utility measure
comparability with other studies
provide a good reason why they should be included and report separately from other results
explain cost effectiveness analysis
cost in monetary units
consequences in non monetary units
consequences measured on a unidimensional scale
what is incremental benefit in regards to MACE
a per-patient mean reduction in MACE events
what is incremental cost in regards to MACE
average cost increase by £600 in intervention group and longer treatment time and more consumables
pros of CEA
relatively simple to do
often used outcome measures which are routinely collected/meaningful in a particular field or to decision makers
as measures are likely to be specific to disease or problem then they may be more sensitive
CEA cons
not comprehensive - outcome is unidimensional so cannot incorporate other aspects of outcome/health in CE ratio
comparability - interventions with different aims cannot be compared with one another
interpretation - not always clear what value of outcome is and method assumes outcome is worthwhile
primarily addresses the technical efficiency and cannot determine optimal budget level
what is cost minimisation analysis?
uncertainty about differential costs
all relavent outcomes are equivalent
least costly option is most effective
what is cost utility analysis?
outcome measure is generic
encompasses mortality and morbidity
QALYs most frequently used
