Skip to main content

Introduction to Health Economics



A limited healthcare budget means that not all drugs, devices and equipment that can be used to treat a medical condition can be funded. Healthcare providers must make decisions about which treatments they will fund. But because treatments are designed for very different patients and have very different outcomes, it can be difficult to make them happy. To make informed and evidence-based decisions, healthcare providers must understand the impact of introducing a new treatment. This includes the costs of the treatment, the costs of treating any side effects associated with the treatment, and the expected benefits for patients health and quality of life. To quantify this, healthcare providers look to health economics. 

Health economics can be used to assess the cost-effectiveness of new healthcare interventions. Cost effectiveness assessments examine how much patients benefit from a new intervention given the financial costs and benefits compared to the next best alternative. Because health economics uses standardized measures to weigh up the cost and benefits, it can provide a meaningful and fair comparison of healthcare interventions. This allows healthcare providers to make informed, transparent and justified decisions, giving the public confidence in their healthcare system. When calculating the costs of a healthcare intervention, health economists must consider all the aspects of introducing a new treatment option. This includes the cost of medications, any equipment used to administer it, appointments to see a doctor or other healthcare professionals, and treatment for any side effects. Benefits must also be quantified numerically. The most common measure of this is quality-adjusted life years or qualities. These incorporate both the number of years lived and the quality of life experience due to treatment. Quality of life is often determined in consultation with patients to understand the impact of treatment on day-to-day life. Treatments that are more cost-effective have a greater likelihood of being approved for reimbursement, which would allow patients to receive the technologies via their healthcare provider.

Location: 85CWJGJ6+64

Comments

Post a Comment

Popular posts from this blog

What is economic evaluation of health care

Welcome to this article on health economic evaluation. We will have a very broad look at what it is and introduce the four main types of economic evaluations. So, first of all, why do we need health economic evaluations? There are many effective and worthwhile health interventions or programs that can improve the health of a population. If we had a lot of money to spend, we could use it for every beneficial health program.   The reality, however, is that we usually don't. If we spend all the money on one intervention, we don't have any left for others. This is called an opportunity cost. Because of this, difficult decisions have to be made to ensure a limited amount of money is spent to achieve the most benefit. Health economic evaluation is a tool that helps with making those decisions. It allows us to compare two or more health interventions based on their costs and outcomes. Four main types of economic evaluations cost minimization; cost-effectiveness; cost-utility; cost-ben...
Post a Comment
Read more

What is Health Economics and Outcomes Research (HEOR)

Health economics and health outcomes research is a scientific field that lies at the intersection of economic theory, statistical research, and health care. Today, research in this field is as important as clinical trials of drugs and medical technology. At the same time, unlike laboratory research, it provides data on how certain drugs and techniques work and how effective they are in real-world settings. What is HEOR HEOR brings together two crucial branches of science - health economics and outcomes research. Health economics studies the cost of drugs and health care and the factors affecting pricing and quality of care. The study and analysis of clinical trial results and economic data by experts in this field allows health care resources to be used cost-effectively. Outcomes research is a branch of science that focuses on studying and optimizing the results of various medical procedures. The main task of outcome researchers is to provide data on whether a particular drug or clini...
Post a Comment
Read more