S4) Healthcare Economics Flashcards Preview

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Flashcards in S4) Healthcare Economics Deck (21)
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1
Q

Scarcity is a basic concept in healthcare economics. What does it mean?

A

- Scarcity is when the need outstrips resources

  • Prioritisation is inevitable
2
Q

Efficiency is a basic concept in healthcare economics. What does it mean?

A

Efficiency means getting the most out of limited resources

3
Q

Equity is a basic concept in health economics. What does it mean?

A

Equity is the extent to which distribution of resources is fair

4
Q

Effectiveness is a basic concept in healthcare economics.

What does it mean?

A

Effectiveness is the extent to which an intervention produces desired outcomes

5
Q

Utility is a basic concept in healthcare economics.

What does it mean?

A

Utility is the value an individual places on a health state

6
Q

Opportunity cost is a basic concept in health economics.

Explain what it means using an example

A

E.g. Resources spent on a new treatment, cannot now be used on other treatments

The opportunity cost of the new treatment is the value of the next best alternative use of those resources

7
Q

What is technical efficiency?

A

Technical efficiency is finding the most efficient way of meeting a need e.g. should antenatal care be community or hospital-based?

8
Q

What is allocative efficiency?

A

Allocative efficiency involves choosing between the many needs to be met e.g. fund hip replacements or neonatal care?

9
Q

What does an economic analysis involve?

A

An economic analysis compares the inputs (resources) and outputs (accompanying benefits and value) of alternative interventions

10
Q

Identify 5 ways of measuring costs

A
  • Costs of the healthcare services
  • Costs of the patient’s time
  • Costs associated with care-giving
  • Other costs associated with illness
  • Economic costs borne by the employers, etc
11
Q

How do we measure benefits?

A
  • Impact on health status
  • Savings in other healthcare resources if the patient’s health state is improved
  • Improved productivity if patient returns to work earlier
12
Q

Identify 4 ways of comparing costs and benefits

A
  • Cost minimisation analysis
  • Cost effectiveness analysis
  • Cost benefit analysis
  • Cost utility analysis
13
Q

Outline cost minimisation analysis

A
  • Outcomes assumed to be equivalent
  • Focus is on costs i.e. only the inputs
  • E.g. All prostheses for hip replacement improve mobility equally. Choose the cheapest one.*
14
Q

Describe the use of cost effectiveness analysis

A

Used to compare drugs or interventions which have a common health outcome

E.g. reduction in blood pressure - if costs are higher for one treatment, but benefits are too, calculate how much extra benefit is obtained for the extra cost

15
Q

Describe the use of cost benefit analysis

A
  • All inputs and outputs valued in monetary terms
  • Methodological difficulties e.g. putting monetary value on non-monetary benefits such as lives saved
16
Q

Describe the use of cost utility analysis

A
  • Focuses on quality of health outcomes produced or foregone
  • Most frequently used measure is quality adjusted life year (QALY) and interventions can be compared in cost per QALY terms
17
Q

What are QALYs?

A
  • QALYs adjust life expectancy for quality of life
  • 1 year of perfect health = 1 QALY
18
Q

Provide 2 examples to illustrate the value of 1 QALY

A

Hence, 1 QALY =

  • 10 years with 0.10 perfect health
  • 6 months of 100% health for 2 people
19
Q

A woman diagnosed at age 54 with peptic ulcer can expect to live 23 years. QoL without treatment is 0.7 of perfect health.

How many QALYs does she have without treatment?

A

0.7 x 23 = 16.1 QALYs without treatment

20
Q

This same woman, with 16.1 QALYs (23 years of 70% perfect health) can take treatment and live for 23 years with 0.95 perfect health. The treatment is 50 GBP per annum.

What is the cost per QALY gained?

A
  • QALYs with treatment = 21.85 (0.95 x 23)
  • QALYs gained = 5.75 (21.85 - 16.7)
  • Total cost of treatment = £1,150 (23 x 50)

Cost per QALY gained = £200 (£1,150 / 5.75)

21
Q

What are the main criticisms of QALYs?

A
  • May disadvantage common conditions
  • QALYs may not embrace all dimensions of benefit
  • Values expressed by experimental subjects may not be representative
  • QALYs do not assess impact on carers/family