Dr.Rashmi Associate Professor Ethiraj College for Women

1. HEALTH ECONOMICS
Dr.RASHMI
Associate Professor
Ethiraj College For Women

2. HEALTH ECONOMICS
Health- Health is a state of complete
physical, mental and social well-being and
not merely the absence of disease or
infirmity.
Health Economics is a branch
of economics concerned with issues related
to efficiency, effectiveness, value and
behaviour in the production and
consumption of health and healthcare.

3. ECONOMIC EFFICIENCY
 implies that society makes choices which
maximise the health outcomes gained from the
resources allocated to healthcare. Inefficiency
exists when resources could be reallocated in a
way which would increase the health outcomes
produced.

4. COST-EFFECTIVENESS ANALYSIS
 COST-EFFECTIVENESS ANALYSIS is a way to examine
both the costs and health outcomes of one or more
interventions. It compares an intervention to another
intervention (or the status quo) by estimating how
much it costs to gain a unit of a health outcome, like a
life year gained or a death prevented

5. VALUE IS DEFINED BY THREE
PRINCIPAL COMPONENTS
1) It is meaningful therapeutic value to the patient — where
quantity of life, productivity, and fundamentals of the
disease state are all positively affected.
2) It is a change in the cost, quality and predictability for the
health provider. This may involve shifting the site of care
to a less acute setting, being able to identify the non-
responders in advance, or identifying and placing
resources differentially to those with the highest risk of
progression or re-hospitalization.
3) It is off-setting the risks borne by the payer — be this a
government or private payer

6. IMPORTANCE OF HEALTH
ECONOMICS
• Provides information to decision makers for
efficient use of available resources for
maximizing health benefits. Economic evaluation
is one part of health economics, and it is a tool
for comparing costs and consequences of
different interventions.
• Health Economics is important in determining
how to improve health outcomes and lifestyle
patterns through interactions between
individuals, healthcare providers and clinical
settings. In broad terms, health economists study
the functioning of healthcare systems and health-
affecting behaviour such as smoking, diabetes,
and obesity.

7. IMPORTANCE OF HEALTH
ECONOMICS
• To formulate health services
• To establish the true costs of
delivering healthcare
• To evaluate the relative costs and
benefits of particular policy option
• To estimate the effects of certain
economic variables on the utilization of
health services

8. HEALTH INDICATORS
• Health indicators are quantifiable characteristics
of a population which researchers use as
supporting evidence for describing the health of a
population. ... Health indicators are often used by
governments to guide health care policy.
• A health indicator is a measure designed to
summarize information about a given priority
topic in population health or health system
performance.

9. CHARACTERISTICS OF HEALTH INDICATORS
• It should be defined in such a way that it
can be measured uniformly
internationally.
• It must have statistical validity.
• The indicator must be data which can
feasibly be collected.
• The analysis of the data must result in a
recommendation on which people can
make changes to improve health

10. BIRTH RATE
• The proportion of births to the total population in a
place in a given time, usually expressed as a quantity
per 1000 of population.
• The birth rate for India in 2019 was 17.806 births per
1000 people, a 1.19% decline from 2018. The birth
rate for India in 2018 was 18.020 births per 1000
people, a 1.68% decline from 2017.

11. DEATH RATE
• Crude death rate indicates the number of deaths
occurring during the year, per 1,000 population
estimated at midyear.
• Subtracting the crude death rate from the crude
birth rate provides the rate of natural increase,
which is equal to the rate of population change in
the absence of migration.
• In 2019, death rate for India was 7.3 per 1,000
people. Over the last 50 years, death rate of India
was declining at a moderating rate to shrink from
17.2 per 1,000 people in 1970 to 7.2 per 1,000
people in 2019

12. IMR (INFANT MORTALITY RATE)
• Infant mortality rate (IMR) is the number of
deaths per 1,000 live births of children
under one year of age. The rate for a given
region is the number of children dying under
one year of age, divided by the number of
live births during the year, multiplied by
1,000.
• In 2018, the infant mortality rate in India
was at about 30 deaths per 1,000 live
births, a significant decrease from previous
years. The infant mortality rate is the
number of deaths of children under one
year of age per 1,000 live births.

13. CMR (CHILD MORTALITY RATE)
• The child mortality rate, also 'under-
five mortality rate', refers to the probability of
dying between birth and exactly five years of
age expressed per 1,000 live births. ...
However, despite advances, there are still
15,000 under-five deaths per day from largely
preventable causes.

14. MATERNAL MORTALITY RATIO (MMR)
• MATERNAL MORTALITY RATE is the number of
resident maternal deaths within 42 days of pregnancy
termination due to complications of pregnancy,
childbirth, and the puerperium(the period of about six
weeks after childbirth during which the mother's
reproductive organs return to their original non-
pregnant condition). in a specified geographic area
(country, state, county, etc.)
• India's Maternal Mortality Ratio (MMR) has seen a
decline from 130 per 1 lakh live births in 2014-2016 to
122 per 1 lakh live births in 2015-2017. A decline of 8
points (6.2%) was observed during this period,
according to the latest Sample Registration System
(SRS) 2015-2017

15. MORBIDITY RATE
• Morbidity is another term for illness. A person
can have several co-
morbidities simultaneously.
So, morbidities can range from Alzheimer's
disease to cancer to traumatic brain
injury. Morbidities are NOT deaths.
Prevalence is a measure often used to
determine the level of morbidity in a
population.

16. DISABILITY-ADJUSTED LIFE YEARS
(DALYS)
One DALY represents the loss of the
equivalent of one year of full health.
DALYs for a disease or health condition
are the sum of the years of life lost to
due to premature mortality (YLLs) and
the years lived with a disability (YLDs)
due to prevalent cases of the disease
or health condition in a population.

17. QUALITY-ADJUSTED LIFE YEAR (QALY)
• The QALY calculation is simple: the change in
utility value induced by the treatment is
multiplied by the duration of the treatment effect
to provide the number of QALYs gained. QALYs
can then be incorporated with medical costs to
arrive at a final common denominator of
cost/QALY.
• The QALY is primarily used in cost-effectiveness
analyses to guide decisions regarding the
distribution of limited health care resources
among competing health programs or
interventions for a population of interest, but has
also been used to aid decisions regarding clinical
management and individual patient care.

18. GENDER RATIO OR SEX RATIO IN INDIA
• Sex ratio is used to describe the
number of females per 1000 of males.
Sex ratio is a valuable source for
finding the population of women in
India and what is the ratio of women to
that of men in India