Health Economics Overview

Health Economics Focus

• Analyzes resource allocation within healthcare systems
• Examines how to optimize health outcomes given limited resources

Opportunity Cost in Health Economics

• The value of the best alternative foregone when choosing a particular healthcare option
• Example: Choosing surgery over physical therapy means forgoing the potential benefits of physical therapy

Measuring Health Outcomes

• Quality-Adjusted Life Years (QALYs) measure the value of life years adjusted for their quality
• One QALY equals one year of life in perfect health

Cost-Effectiveness Analyses in Health Policy

• Assess the relative costs and health benefits of different healthcare interventions
• Inform policy decisions regarding resource allocation and treatment prioritization

Economic Evaluation

• Systematic assessment of the economic value of a healthcare service or treatment
• Considers costs, benefits, and potential risks associated with various interventions

Health Equality

• All individuals are treated equally regardless of their health condition or socioeconomic status.
• Example: All individuals receive the same vaccine regardless of their health condition.

Health Equity

• Aims to level the playing field for disadvantaged individuals or groups.
• Provides necessary resources, services, or support for equal health outcomes.
• Examples include transportation, education, or financial assistance.

Vertical Equity

• Advocates for fair treatment across different income or wealth levels.
• Rooted in progressive fairness.
• Example: Progressive health insurance plans based on income levels.

Horizontal Equity

• States equal treatment for individuals with similar capacities to pay.
• Emphasizes fairness among those in similar circumstances.

Health Justice

• Addresses root causes of health disparities and systemic inequalities.
• Involves policy changes, addressing social determinants of health.
• Promotes health equity through systemic reforms.
• Examples include poverty, discrimination, and unequal healthcare access.

Direct Costs In Health

• Expenses related to medical care and services.
• Includes diagnostics, treatment, procedures, hospital stays, medications, etc.
• Example: surgery cost, physician consultations, medication, hospitalization for chronic illness.

Indirect Costs In Health

• Costs not directly tied to healthcare services.
• Involves productivity losses, time costs, and economic impacts.
• Examples include lost wages and hiring caregivers.

Tangible Costs

• Quantifiable, monetary costs.
• Includes direct and indirect costs.
• Examples: medication expenses and healthcare travel.

Intangible Costs

• Non-monetary consequences of diseases or health conditions.
• Involves pain, suffering, emotional distress, loss of life quality, and psychological impacts.
• Examples include the emotional impact of chemotherapy and stress and anxiety in chronically ill patients.

Effectiveness

• The extent to which a healthcare intervention achieves its intended outcomes.

Efficiency

• Maximizing the benefit to any resource expenditure.
• Minimizing the cost of any achieved benefit.
• Least waste of time and resources.

This quiz covers key concepts in health economics, including resource allocation, opportunity costs, and measuring health outcomes. It delves into cost-effectiveness analyses and economic evaluations that inform healthcare policy. Test your understanding of how economics shapes health interventions and outcomes.