PHAR4823 Lecture Notes - Lecture 15: Colorectal Cancer, Economic Evaluation, Allocative Efficiency
23 Jul 2018
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Document Summary
Health economics is the application of the discipline and tools of economics to the subject matter of health". It describes a way of thinking about problems of resource allocation. It analyses the costs and benefits of improving patterns of resource allocation. Positive economics analyses how economic agents (people, firms, hospitals, etc. ) actually behave: normative economics considers what role the government ought to play in the running of the economy. Values are present in both positive and normative economics. The aim of economic evaluation is to determine efficiency i. e. allocate resources in such a way that maximises the (health) benefits to society and minimises costs. Getting the right mix of health care services. Is based on the utilitarian ethic of maximising satisfaction for the greatest number of individuals. If something is worthwhile doing, what is the best way of providing it (at least cost): maximum output for a given level of resources, minimum cost for a given level of output.
