heco 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

  To provide a way of assessing whether:

  • Health resources are used optimally
  • Health programs are implemented efficiently
  • Health outputs are maximized
• Costs


  What society, governments or individuals incur to run a program, or to produce something that they desire (e.g. better health). Monetary value of producing a good or service.
• Types of Costs


  • Total cost
  • Average cost
  • Marginal cost
  • Opportunity cost
  • Direct cost
  • Indirect costs
  • Intangible cost
  • Capital cost
  • Recurrent cost
• Total cost


  Measure of all costs entailed in producing a given level of output. Measure of aggregate or combined resources requirements. Sum of all costs incurred during production of a certain activity or program.
• Average cost


  Measure of the total cost of production associated with each unit of output
• Marginal cost


  Measure of the resources associated with a small increment change in output (e.g. adding an extra vaccine, extending vaccination to the other villages)
• Opportunity cost


  Cost of sacrificing other outputs/outcomes in favor of a chosen program. How much earning potential has been sacrificed.
• Direct cost


  Cost that can be directly attributed to a specific output or production. Example: Direct materials of producer and direct labor.
• Indirect costs


  Cost that incurred as a sacrifice for being in ill health or performing in a health producing activity.
• Intangible cost


  Attached to entities that we cannot touch and feel. Examples: pain and suffering.
• Capital cost


  Costs for items with a life expectancy of more than a year. Example: building construction, purchasing equipment, basic manpower treatment, cars, technology and gadgets.
• Recurrent cost


  Costs necessary incurred each year or each month. Example: Salaries, wages, medical supplies, medical drugs, fuel, utilities, water. Monthly payment.
• Measuring outcomes


  Effects of the health interventions for which the costs were incurred. Benefits that individuals and society get in return for undertaking a certain activity.
• Basic principles of economic evaluation


  • Decision making - Allow program planners to have an objective basis for choosing a specific option from a list of several.

  Comparing costs with benefits - Cost attached to the available options are measured against the health effects of benefits that they will produce.

  "Bank" and "buck" - outcomes/benefits/effects. Economic evaluation techniques are essentially comparing "bucks" and "bangs".
• Types of economic evaluation


  • Cost Effectiveness Analysis
  • Cost Minimization Analysis
  • Cost Utility Analysis
  • Cost Benefits Analysis
• Cost Effectiveness Analysis


  Most frequently used. Investigates the best way of achieving a single objective by comparing effect and costs. Compares costs with the health effects of each program or intervention being evaluated.
• Cost 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. Measures effects of the project in terms of utilities. Utilities = measurements of outcomes that are "quality adjusted".
• Cost Benefits Analysis


  Values both costs and benefits in money terms and compares them. How many times the cost is earned by its health effect.
• Economic evaluation techniques are valuable tools in assessing the economic feasibility and efficiency of health interventions.
• Can be used in assessing health programs, medical therapeutic and diagnostic interventions, and pharmacologic therapeutics.
• A thorough appreciation and knowledge that these techniques are being done by health planners will be sufficient.
• Finance


  Defined as finding a way to pay for something. The study of discipline of money, currency, and capital assets.
• Health financing


  Answers the basic question: how do we pay for our health bill. Crucial to a country's effort in making healthcare accessible to all. Core function of health system that can enable progress toward universal health coverage by improving effective service coverage and financial protection.

  
• World Health Organization (WHO) approach to health financing focuses on core functions


  • Revenue raising
  • Pooling of funds
  • Purchasing of services

  
• Modes of Private Health Financing


  • Out-of-pocket
  • Private Insurance
  • Health Maintenance Organizations (HMO)
  • Employer-Based Plans
  • Private Schools

  
• Out-of-pocket health spending


  Requires an individual to pay a health provider or facility from his pocket each time they avail a medical service.
• Production process flow


  INPUT - PROCESS - OUTPUT
• INPUT


  Objectives: use efficiently, use in optimal combinations
• PROCESS


  Efficiency in processing inputs
• Concepts used in health programs


  • Provide a way of assessing whether:
  • Health resources are used optimally
  • Health programs are implemented efficiency
  • Health outputs are maximized
• Costs


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

  • Monetary value of producing a good or service.
• Types of costs


  • Total cost
  • Average cost
  • Marginal cost
  • Opportunity cost
  • Direct cost
  • Indirect costs
  • Intangible cost
  • Capital cost
  • Recurrent cost
• Total cost

  Measure of all costs entailed in producing a given level of output.

  • Measure of aggregate or combined resources requirements.
  • Sum of all costs incurred during production of a certain activity or program.
• Average cost


  Measure of the total cost of production associated with each unit of output
• Marginal cost


  Measure of the resources associated with a small increment change in output. (E.g., adding an extra vaccine, extending vaccination to the other villages.)
• Opportunity cost


  Cost of sacrificing other outputs/outcomes in favor of a chosen program.

  • How much earning potential has been sacrificed.
• Direct cost


  Cost that can be directly attributed to a specific output or production.

  Example: Direct materials of producer and direct labor.
• Indirect costs


  Cost that incurred as a sacrifice for being in ill health or performing in a health producing activity.