Health eco finals

• Production Process Flow


  1. Input – objectives (use efficiently, use in optimal combinations)

  2. Process – Efficiency in processing inputs

  3. Output – maximize
• Concepts used in health programs

  Provide a way of assessing whether:

  + health resources are used optimally

  + health programs are implemented efficiently

  + health outputs are maximized
• Costs


  Should always compare with the effect, the effects should always out way their costs
• Costs


  What society, governments or individuals incur to run a program, or to produce something that they desire (better health)

  • Monetary value of producing a good or service
• Types of costs (According to the behavior of costs)

  • total cost
  • Average cost
  • marginal cost
  • opportunity costs
• Kinds of costs (according to the relationship of costs to the product or service produced)

  • direct cost
  • indirect costs
  • intangible cost
  • capital costs
  • recurrent cost
• Outcomes


  Effects of the health interventions for which the costs were incurred

  • Benefits that individual and society get in return for undertaking certain activity
• Basic Principles of economic evaluation

  • Decision making - allows programs planners to have a objective basis for choosing a specific option from a list of several

  Comparing costs with benefits - costs attached to the available options are measure against the health effects of benefits that they will produce
• BANG and BUCK


  Outcomes / benefits / effects

  • economic evaluation techniques are essentially comparing bucks and bangs
  • answers the questions: how much bang do you get for each buck you spend for?
• Types of economic evaluation

  • Cost effectiveness analysis
  • Costs minimization analysis
  • Cost utility analysis
  • Cost benefit analysis
• Cost effectiveness analysis


  Investigates the best way of achieving a single objective by comparing effects and costs
• Costs minimization analysis


  Derivation of the CEA but focuses on the costs of different given alternative programs or intervention options, the least cost option is chosen
• Cost utility analysis


  Another form of CEA, measure effects of the project in terms of utilities, utilities = measurement of outcomes that are quality adjusted
• Cost benefit analysis


  Values both costs and benefits in money terms and compared them through: benefits / costs, how many times the cost is earned by its health effect