Chapter 9 - Health Economics

8/19/2019 Chapter 9 - Health Economics

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Chapter 9

Health Economics


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Chapter 9

Health Economics

1.Does economics apply to healthand health care?

2.Does economics irrelevant tothe study of health and health

care?


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Chapter 9

Health Economics

Health Economics

- ... studies the supply and demand ofhealth care resources and impact of health

care resources on a population.

- The Mosy Medical Encyclopedia

!1992" p. #$1%


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Chapter 9Health Economics

Health economics is defined in terms ofthe determination and allocation of health

care resources. This is lo&ical" ecause

medical &oods and services cannot e'ist(ithout them.


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Health care resources consist of follo(in&)

1.Medical supplies such as pharmaceutical &oods"

late' ruer &loves" and ed linens.

2.*ersonnel such as physicians and la assistance.

#.Capital inputs" includin& nursin& homes and hospitalfacilities" dia&nostic and therapeutic e+uipment" and

other items that provide medical care service.


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The ,our asic uestions in Health Economics)

1./hat mi' nonmedical and medical &oods and

services should e produced in the

macroeconomy?

2./hat mi' of medical &oods and services shoulde produced in the health economy?

#./hat specific health care resources should e

used to produce the chosen medical &oods and

services.


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The ,our asic uestions in Health Economics)

0. /ho should receive the medical &oods and

services that are produced?


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,eatures of Economic nalysis sed in Health

1.3carcity of societal resources

2.ssumption of rational decision ma4in&

#.Concept of mar&inal analysis0.se of economic models


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Distinctive ,eatures Health and Health care in

Economic Terms)

1.*resence and E'tent of ncertainty

2.*rominence of 5nsurance

#.*rolems of 5nformation

0.6ar&e 7ole of 8onprofit ,irms

.7estrictions of Competition

$.7ole of E+uity and 8eed

:.;overnment 3usidy and *ulic *rovision


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• 6eadership and &overnance involves ensuring strategic policy

frameworks exist and are combined with effective oversight, coalition-

building, the provision of appropriate regulations and incentives,

attention to system-design, and accountability.

• A good health financin& system raises adequate funds for health, in

ways that ensure people can use needed services, and are protected

from financial catastrophe or impoverishment associated with having

to pay for them.

• A well-functioning health system ensures equitable access

to essential medical products , vaccines and technolo&ies of

assured quality, safety, efficacy and cost-effectiveness, and their

scientifically sound and cost-effective use.


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• A well-functioning health information system is one that ensures the

production, analysis, dissemination and use of reliable and timely

information on health determinants, health systems performance and

health status.

• A well-performing health (or4force is one which works in ways that

are responsive, fair and efficient to achieve the best health outcomes

possible, given available resources and circumstances. .e. !here are

sufficient numbers and mix of staff, fairly distributed" they arecompetent, responsive and productive.

• #ood health services are those which deliver effective, safe, quality

personal and non-personal health interventions to those who need

them, when and where needed, with minimum waste of resources.


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/hich of the 3i' uildin&

loc4s of Health 3ystem is

the most important for

you? /hy?


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The *hilippine Health

Care 3ystem


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Health /or4force!Human 7esources for

Health >H7H%


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5f you can=t e'plain it simply"you don=t understand it (ellenou&h.@

- lert Einstein

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Chapter 9 - Health Economics

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