Chapter 9

Chapter 9
Health Economics
1
Chapter 9
Health Economics
1.Does economics apply to health

and health care?
2.Does economics irrelevant to
the study of health and health
care?
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Chapter 9
Health Economics
Health Economics
- ... studies the supply and demand of
health care resources and impact of health
care resources on a population.
- The Mosby Medical Encyclopedia
(1992, p. 361)
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Chapter 9
Health Economics
Health economics is defined in terms of

the determination and allocation of health
care resources. This is logical, because
medical goods and services cannot exist
without them.
Chapter 9
Health Economics
Health care resources consist of following:

1.Medical supplies such as pharmaceutical goods,
latex rubber gloves, and bed linens.
2.Personnel such as physicians and lab assistance.
3.Capital inputs, including nursing homes and hospital
facilities, diagnostic and therapeutic equipment, and
other items that provide medical care service.
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Chapter 9
Health Economics
The Four Basic Questions in Health Economics:

1.What mix nonmedical and medical goods and
services should be produced in the
macroeconomy?
2.What mix of medical goods and services should
be produced in the health economy?
3.What specific health care resources should be
used to produce the chosen medical goods and
services.
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Chapter 9
Health Economics
The Four Basic Questions in Health Economics:

4. Who should receive the medical goods and
services that are produced?
Chapter 9
Health Economics
Features of Economic Analysis Used in Health

1.Scarcity of societal resources
2.Assumption of rational decision making
3.Concept of marginal analysis
4.Use of economic models
Chapter 9
Health Economics
Distinctive Features Health and Health care in

Economic Terms:
1.Presence and Extent of Uncertainty

2.Prominence of Insurance
3.Problems of Information
4.Large Role of Nonprofit Firms
5.Restrictions of Competition
6.Role of Equity and Need
7.Government Subsidy and Public Provision
Chapter 9
Health Economics
Six Building Blocks of

Health System
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Chapter 9
Health Economics
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Chapter 9
Health Economics
Leadership and governance involves ensuring strategic policy

frameworks exist and are combined with effective oversight, coalitionbuilding, the provision of appropriate regulations and incentives,
attention to system-design, and accountability.
A good health financing 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 technologies of
assured quality, safety, efficacy and cost-effectiveness, and their
scientifically sound and cost-effective use.
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Chapter 9
Health Economics
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 workforce is one which works in ways that
are responsive, fair and efficient to achieve the best health outcomes
possible, given available resources and circumstances. I.e. There are
sufficient numbers and mix of staff, fairly distributed; they are
competent, responsive and productive.
Good 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. 13
Chapter 9
Health Economics
Which of the Six Building

Blocks of Health System is
the most important for
you? Why?
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Chapter 9
Health Economics
The Philippine Health

Care System
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Chapter 9
Health Economics
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Chapter 9
Health Economics
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Chapter 9
Health Economics
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Chapter 9
Health Economics
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Chapter 9
Health Economics
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Chapter 9
Health Economics
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Chapter 9
Health Economics
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Chapter 9
Health Economics
Only those with money can fully pay for out of

pocket payments and often they have generous
health insurance.
The near-poor and lower middle classes can
become impoverished to meet out of pocket
payments for health care.
The very poor dont even have pockets.
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Chapter 9
Health Economics
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Chapter 9
Health Economics
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Chapter 9
Health Economics
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Chapter 9
Health Economics
Health Workforce
(Human Resources for
Health /HRH)
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Health Economics
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Chapter 9
Health Economics
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Chapter 9
Health Economics
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Chapter 9
Health Economics
31
If you cant explain it simply,

you dont understand it well
enough.
- Albert Einstein
32
End
of
Presentation
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1.Does economics apply to health

Health economics is defined in terms of

Health care resources consist of following:

The Four Basic Questions in Health Economics:

The Four Basic Questions in Health Economics:

Features of Economic Analysis Used in Health

Distinctive Features Health and Health care in

1.Presence and Extent of Uncertainty

Six Building Blocks of

Leadership and governance involves ensuring strategic policy

A good health financing system raises adequate funds for health, in

A well-functioning health system ensures equitable access

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

Which of the Six Building

The Philippine Health

Only those with money can fully pay for out of

If you cant explain it simply,

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