Introduction: Economic evaluation of healthcare (Eric) The evaluation of health care programmesis divided into evaluation of efficacy, effectiveness, efficiency, availability. Additionally, the evaluation of efficiency is more commonly known as economic evaluation(Cunningham, 2001). Therefore, economic evaluation is defined as ‘the comparative analysis of alternative courses of action in terms of both their costs and consequences’ (Drummond et al., 1987). Economic evaluation basically sets out to find the best and the most satisfied way to use with the resources for the health procedure which are related with the benefits and costs(Cunningham, 2001). Benefits are divided into gains in direct benefits and indirect benefits. Costs are divided into direct medical costs, direct non-medical costs and indirect costs or productivity costs(Cunningham, 2001). Therefore the term ‘opportunity cost'is particularly important which means the value of a resource in its best alternative use. Moreover, evaluations aim to compare opportunity costs with the improvement in health with the intervention under examination(Cunningham, 2001). According to Drummond &Stoddart& Torrance (1987), the economic evaluation in health care is most useful when certain other questions have already been answered and these include the efficacy of the procedure, evaluation of effectiveness and the availability of the service. So the economic evaluation is dependent on the quality of underlying medical evidence(Cunningham, 2001). As a result, the clinical trials are increasingly viewed as a natural vehicle for economic analysis (Drummond and Davies, 1991). Tools of economic evaluation (Stephen) There are four major types of cost analysis. They are the Cost Minimiza... ... middle of paper ... ... The evaluation goal is aimed for the social benefit. As CBA is to measure both the direct and indirect benefit and costs for analysis with the absence of reference in active market, then the difficult part is probably to attach dollar values to human life(Follandet al., 2007). Different from CBA, the CEA offer a more practical evaluation result. By avoiding the count of dollar values to human life outcomes, the CEA focuses on providing useful guidance to the decision marker(Follandet al., 2007). Moreover, CBA applications in health care still are less prevalent than one would expect. The difficulties in evaluating benefits, especially the value of life and improved quality of life, place limits on CBA and its usefulness to decision makers(Follandet al., 2007). As a result, CEA using QALYs has emerged as an important tool for program evaluation(Follandet al., 2007).
A cost-benefit analysis is “whenever people decide whether the advantages of a particular action are likely to outweigh its drawbacks” (Benefit-Cost Analysis, n.d.). The analysis estimates the economic value placed upon a
113-117. Retrieved April 21st, 2011 from website: http://secure.cihi.ca/cihiweb/products/physicians_payment_aib_2010_f.pdf. D. Squires, The Commonwealth Fund, and others, International Profiles of Health Care Systems, The Commonwealth Fund, June 2010. Retrieved April 20th, 2011 from website: http://www.commonwealthfund.org//media/Files/Publications/Fund%20Report/2010/Jun/1417_Squires_Intl_Profiles_622.pdf. Johns, M. L. & Co. (2010). The 'Standard' of the 'Standard'.
The patients should receive safe and appropriate care in return for payment equal to the level of care received (“What is Value-Based Care”, 2016). For providers, this means using affordable and proven treatments while also catering to the patient’s needs (“What is Value-Based Care”, 2016). Additionally, this model is built upon measurement which when relayed to the patient will inform them of the scope and cost of their care. Examples of measures that are tracked, provided by the article “What is Value-Based Care,” include: procedural complications, hospital-acquired infections, and readmissions; providers face penalties if these metrics are unacceptable (“What is Value-Based Care”,
West, S. L., & O'Neal, K. K. (2004). Project D.A.R.E. outcome effectiveness revisited. American Journal of Public Health. doi:10.2105/AJPH.94.6.1027
EFFECTS OF MEDICAL RESEARCH ON HEALTH CARE AND THE ECONOMY, By: Herbert Pardes, Kenneth G. Manton, Eric S. Lander, H. Dennis Tolley, Arthur D. Ullian, Hans Palmer, 01-01-99, Academic Search Premier
The balance between quality patient care and medical necessity is a top priority and the main concern of many of the healthcare organizations today. Due to the rising cost of healthcare, there has been a change in the focus of reimbursement strategies that are affecting the delivery of patient care. This shift from a fee-for-service towards a value-based system creates a challenge that has shifted many providers’ focus more directly on their revenue. As a result, organizations are forced to take a hard look at the cost of services they are providing patients and then determining if the services and level of care are appropriate for the prescribed patient care.
National health systems are assessed by the extent to which expenditure and actions in public health and medical care contributes to the crucial social goals of improving health, increasing access to quality healthcare, reducing health disparities, protecting citizens from penury due to medical e...
One explanation is an increased life expectancy resulting from improved medical therapies. As a result, many more individuals are diagnosed with chronic, clinically manageable illnesses, rather than with terminal illnesses. Some argue that, in addition to mortality and morbidity, quality of life must also be used to assess health care outcomes (moons 2006)(Macduff, 2000). A second explanation is the proliferation and advancement of medical and surgical technologies. With the increase in available treatments, thorough consideration of the benefit-burden ratio of equivalent therapies is now needed. Quality of life issues are now included when health care professionals assess the benefits of different treatment options. Hence, research on quality of life affects how policymakers allocate health care resources or determine reimbursement policies (moons 2006) (De Geest & Moons,
providing quantitative data to monitor some clinical effectiveness to satisfy the Governments ‘payment by results’ (PBR) agenda and health commissioners for funding; contributing to national data sets for research (CORC).
Robinson defines cost-effectiveness analysis as, “a form of economic evaluation in which the costs of alternative procedures or programmes are compared with outcomes measured in natural units-for example, cost per life year saved, cost per case cured, cost per symptom free day” (1993, p. 307). Simply put, “cost-effectiveness analysis and cost-utility analysis provide information about the differences in outcomes in relation to differences in costs” (Hicks, 2014, p.342).
Sendi, P., Marwenn, J. and Rutten, F., 2004, ‘Portfolio Theory and Cost Effectiveness Analysis: A Further discussion’, Value in Health, 2004, Vol 7, Number 5
A quality-adjusted life year (QALYs) is one of the most widely used measures for measuring the quality of life and is used for the assessment of health outcomes. Health is a function of length of life and quality of life (Prieto and Sacristán, 2003) and this measure serves as composite indicator which allows quantity and quality of life in a single ind...
Managerial economics is based upon how to gain the most benefit from one’s company depending on the market and decisions made to help compensate the changes within the market. This form of economics dives into applying economic ideas and analyzing the economic world to make rational and critical managerial decisions. However, starting with managerial economics, one has to create a system of organization to build a foundation for one’s company. Many successful businesses have this systematic framework that can be applied consistently in addressing organizational problems to structure more effective organizations.
Murphy, KM, & Topel, RH 2003, 'The economic value of medical research ', in KM Murphy & RH Topel (eds), Measuring the gains from medical research: an economic approach, University of Chicago Press, Chicago, pp. 41-73.