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ECONOMICS
HEALTH
Health is a state of complete
physical, mental and social well being
and not merely the absence of disease or
infirmity
“H...
HEALTH
ECONOMICS
It is the allocation of resources within the
health system in the economy, as well as
functioning of health care market.
HEALTH
ECONOMICS
Health economics is concerned with the
of health and health
care. It is the branch of economics concerned...
is the study of how scarce resources
are allocated among alternative uses for the care of
sickness and in the promotion, m...
Efficiency
Production Of Health
Health care market
Macroeconomics
Economic Output Level
MEANING AND
SCOPE OF HEALTH
ECONOMICS
DETERMINANTS OF
HEALTH
HEALTH CARE
MARKETS
SUPPLY OF HEALTH
CARE
NATIONAL HEALTH
SYS...
To formulate health
services
To establish the true costs of
delivering health care
To evaluate the relative costs and
bene...
Health resources are finite. A choice must be made
which resource to use for which activity
Economics is concerned with ef...
• How to extract maximum benefits from health
industry with the least cost combination
• The use of application of materia...
• Health and medical care is considered as
economic goods
• Health is a private or a public good
• Measurement of health i...
• Loss due to ill health
• Resource costs of different diseases, effects of
health and medical care provision
• Planning o...
• Economic aspects of relationship between health
status and productivity
• Financial aspects of health care services
• Ec...
ECONOMIC VARIABLES
RELATIONSHIPS BETWEEN
ECONOMIC VARIABLES
GRAPHICAL
REPRESENTATION OF
RELATIONSHIPS
THE DIRECTION OF THE...
ECONOMIC
EVALUATION
Economic evaluation is the comparative
analysis of alternative courses of action in
terms of both thei...
STEPS IN ECONOMIC
EVALUATION
DEFINE
ALTERNATIVES
DEFINE
PERSPECTIVE,TIME
FRAME &
POPULATION
IDENTIFY, MEASUR
E & VALUE
RESOURCE USE
IDENTIFY,
MEASURE &...
Cost analysis is a resource tool for financial
management in hospital or department. It is an
economic evaluation techniqu...
OBJECTIVES
• To assess the efficiency and effectiveness of function
and their cost implication.
• To improve the policy re...
PURPOSES
• A tool for planning and cost projection
• To assess the efficiency of a programme
• To assess the priorities
• ...
• Make explicit the analytic perspective
• Describe the anticipated benefits
• Specify the components of costs
• Discount ...
COST-BENEFIT
ANALYSIS (CBA)
COST MINIMIZATION
ANALYSIS (CMA)
COST-UTILITY
ANALYSIS (CUA)
COST-EFFECTIVENESS
ANALYSIS (CEA)
Cost-benefit analysis is a practical way of
assessing the desirability of projects, where it is
important to take a long v...
Cost Benefit Analysis (CBA) is an economic
evaluation technique that measures all the
positive (beneficial) and negative (...
COST
BENEFIT
ACTION
Calculate a payback
time for the venture
Add up and compare the
project's costs and benefits
Itemize the
projected benefit...
Cost-effectiveness analysis (CEA) is a form of
economic analysis that compares the relative costs
and outcomes (effects) o...
COST-MINIMIZATION ANALYSIS
Refers to an economic evaluation tool.
Is a method used to measure and
compare the costs of d...
COST–UTILITYANALYSIS (CUA)
Cost–utility analysis (CUA) is a form of
financial analysis used to guide procurement
decisions...
 Anderson, H. J. (1990). Report: hospitals need moresophisticated planning efforts. Hospitals, 64, 50-51.
 Staff. (1990,...
Health economics
Health economics
Health economics
Health economics
Health economics
Health economics
Health economics
Health economics
Health economics
Health economics
Health economics
Health economics
Health economics
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Health economics

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HEALTH ECONOMICS

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Health economics

  1. 1. ECONOMICS HEALTH
  2. 2. Health is a state of complete physical, mental and social well being and not merely the absence of disease or infirmity “Health" in health economic (evaluation) is health status according to some measure.
  3. 3. HEALTH ECONOMICS
  4. 4. It is the allocation of resources within the health system in the economy, as well as functioning of health care market.
  5. 5. HEALTH ECONOMICS Health economics is concerned with the of health and health care. It is the branch of economics concerned with the application of to associated with health and health care.
  6. 6. is the study of how scarce resources are allocated among alternative uses for the care of sickness and in the promotion, maintenance and improvement of health, including the study of how health care and health-related services, their costs and benefits, and are itself distributed among individuals and groups in society.
  7. 7. Efficiency Production Of Health Health care market Macroeconomics Economic Output Level
  8. 8. MEANING AND SCOPE OF HEALTH ECONOMICS DETERMINANTS OF HEALTH HEALTH CARE MARKETS SUPPLY OF HEALTH CARE NATIONAL HEALTH SYSTEMS DEMAND FOR HEALTH AND HEALTH CARE EQUITY IN HEALTH OUTCOMES AND IN HEALTH CARE HEALTH SECTOR BUDGETING AND PLANNING
  9. 9. To formulate health services To establish the true costs of delivering health care To evaluate the relative costs and benefits of particular policy options To estimate the effects of certain economic variables
  10. 10. Health resources are finite. A choice must be made which resource to use for which activity Economics is concerned with efficiency Equity or fair distribution of resources It provides a framework which aims at maximizing benefits within available resources
  11. 11. • How to extract maximum benefits from health industry with the least cost combination • The use of application of material things like medicines, surgical instruments, lab equipments, drugs, vaccinations, family planning tools.
  12. 12. • Health and medical care is considered as economic goods • Health is a private or a public good • Measurement of health is also considered in economics • Stock of health • Investment aspects of health
  13. 13. • Loss due to ill health • Resource costs of different diseases, effects of health and medical care provision • Planning of health and medical care • Choice of technology in health care system, etc. • Provision of equity in health outcomes and health care;
  14. 14. • Economic aspects of relationship between health status and productivity • Financial aspects of health care services • Economic decision making in health and medical care institutions • Planning of health development and such other related aspects
  15. 15. ECONOMIC VARIABLES RELATIONSHIPS BETWEEN ECONOMIC VARIABLES GRAPHICAL REPRESENTATION OF RELATIONSHIPS THE DIRECTION OF THE RELATIONSHIPS
  16. 16. ECONOMIC EVALUATION Economic evaluation is the comparative analysis of alternative courses of action in terms of both their costs and consequences in order to assist policy decisions .
  17. 17. STEPS IN ECONOMIC EVALUATION
  18. 18. DEFINE ALTERNATIVES DEFINE PERSPECTIVE,TIME FRAME & POPULATION IDENTIFY, MEASUR E & VALUE RESOURCE USE IDENTIFY, MEASURE & VALUE CONSEQUENCES COMBINE COSTS & ITS COSEQUENCES ASSESS ROBUSTNESS INTERPRET THE RESULTS
  19. 19. Cost analysis is a resource tool for financial management in hospital or department. It is an economic evaluation technique that involves the systematic collection, categorization, and analysis of program or intervention costs, and cost of illness.
  20. 20. OBJECTIVES • To assess the efficiency and effectiveness of function and their cost implication. • To improve the policy relevance and utility through assessment, planning and avoidance of wasteful expenditure in the hospital. • To allow researchers to achieve cost minimization for the programs under consideration.
  21. 21. PURPOSES • A tool for planning and cost projection • To assess the efficiency of a programme • To assess the priorities • Accountability • To assess equity
  22. 22. • Make explicit the analytic perspective • Describe the anticipated benefits • Specify the components of costs • Discount to adjust for differential timing • Perform a sensitivity analysis • Calculate measurement of efficiency
  23. 23. COST-BENEFIT ANALYSIS (CBA) COST MINIMIZATION ANALYSIS (CMA) COST-UTILITY ANALYSIS (CUA) COST-EFFECTIVENESS ANALYSIS (CEA)
  24. 24. Cost-benefit analysis is a practical way of assessing the desirability of projects, where it is important to take a long view (looking at the repercussion in the future as well as in the near future and a wide view in the sense of allowing side effects of many decisions)it implies the enumeration and evaluation of all the relevant cost and benefits. -Prest and Terkey
  25. 25. Cost Benefit Analysis (CBA) is an economic evaluation technique that measures all the positive (beneficial) and negative (costly) consequences of an intervention or program in monetary terms.
  26. 26. COST BENEFIT ACTION
  27. 27. Calculate a payback time for the venture Add up and compare the project's costs and benefits Itemize the projected benefits Itemize any and all intangible costs Itemize the tangible costs of the intended project Define your CBA's unit of cost
  28. 28. Cost-effectiveness analysis (CEA) is a form of economic analysis that compares the relative costs and outcomes (effects) of different courses of action. Cost-effectiveness analysis is distinct from cost–benefit analysis, which assigns a monetary value to the measure of effect. COST-EFFECTIVENESS ANALYSIS (CEA)
  29. 29. COST-MINIMIZATION ANALYSIS Refers to an economic evaluation tool. Is a method used to measure and compare the costs of different medical interventions.
  30. 30. COST–UTILITYANALYSIS (CUA) Cost–utility analysis (CUA) is a form of financial analysis used to guide procurement decisions. The most common and well-known application of this analysis is in pharmaco economics, especially health technology assessment (HTA).
  31. 31.  Anderson, H. J. (1990). Report: hospitals need moresophisticated planning efforts. Hospitals, 64, 50-51.  Staff. (1990, September). Statement of cash flows as afinancial management tool. Health Care News, 8(3),-4.  Bentivegna, P. I, & Colwell, T. G. (1990). Master planlays foundation for facility investments. Healthcare  Financial Management, 44, 44-50.  Charny, R. M. & Kazemek, E. A. (1990). Improving departmentquality. Healthcare Financial Management, 44, 94.  Cirn, J. & Gellatly, D. L. (1988). Financial management.  In J. A. Miller (ed.), NAB Study Guide. (pp. 99-115).  Washington DC: National Association of Board of Examiners  Cleverly, W. O. (1986). Essentials of Health Care Finance(2nd ed.). Columbus: University of Ohio.

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