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ECON 350 ST

Topics in Health Economics Jaikishan Desai

Course organization
Course outline
Lecture times Tutorials Learning objectives Assessments: Quizzes, Class presentation, Mid-term test &

final exam Class presentation topic: Health care systems in other countries Readings: Textbook & additional readings Blackboard
Expectations Class representative
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Lecture format

Overview of topics
1. 2. 3. 4. 5. 6.
a. b. c. d.
i. ii. iii. iv.

What is health economics Characteristics of health and healthcare The production of health The demand for health and healthcare services Health insurance: Demand and Supply The supply of healthcare services
Production and cost of healthcare services Health care labour markets Pharmaceuticals (and medical equipment) Types of healthcare providers
Physician Hospitals Non-profit firms Managed Care

7. 8. 9.
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Government intervention in health markets Assessment and evaluation of health interventions Health systems around the world

1: What is health economics?

T1.1: What is health economics?


Health economics studies the allocation of resources to

and within the health economy (FGS, p 1)

allocation of resources application of

microeconomics to consumption, production, and exchange of health and healthcare to and within.resources spent on health in total and on different dimensions/aspects of health health economy ..the entire configuration of actors and behaviour (action & interaction) mechanisms that 5 produce health

T1.2: A health economy/system


7. Government intervention in HC markets

Government
2. What is health & healthcare

6. Supply of healthcare i. Production of HC services ii. Types of HC providers

Consumers

Producers
4. Demand for health & Financiers healthcare 5. Health insurance demand and supply

3. Health production

8. Assessment & evaluation of health interventions

Key elements to focus on


Nature of good/service being transacted Transactors motivations & objectives Incentives Opportunity costs & tradeoffs Information A transaction is about.

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Good/service transacted Payment for service Information transfer What else.

Relevance of health economics?


Importance of health (individually & in aggregate) living longer is increasingly dependent on timely and appropriate use of healthcare services ..which require resources Size of health economy and growth trends Health expenditures

as share of GDP as share of government expenditures as share of personal expenditures increase over time

Employment & capital

Economics of health care use & delivery


Price, access, quality Choice of treatment
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New Zealand: General Government Expenditure (2006)

Social protection, 26%

General public services, 13% Defence, 3%

Education, 19% Economic affairs, 10%

Public order and safety, 5%

Recreation, culture and religion, 3%

Health, 17%

Environmental protection, 3%

Housing and community amenities, 2%


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Household spending in NZ
Average weekly household expenditure on health Table 1(3) HES
20 15 10

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0 2006/07 2009/10 Medical products, appliances, and equipment Out-patient services Hospital services
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Average weekly household expenditures Table 2 HES


Other Miscellaneous expenditure, goods and $97 services, $92

Education, $17
Recreation and culture, $99

Alcoholic beverages, tobacco, and illicit drugs, $29 Housing and Clothing and footwear, $31 household utilities, $253

Communicatio n, $36

Transport, $131

Household contents and services, $45 Health, $24

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Share of health in GDP (%)


17 15 13 11 9 7 5 3 Australia New Zealand United Kingdom Canada Norway United States Denmark Spain Germany Sweden

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Health system indicators


(per 1,000 population) - 2009
18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0

Physicians
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Nurses

Hospital beds

A Guide to FGS Chapter 1


What is health economics

The relevance of health economics


Economic methods and examples of analyses Does economics apply to health & healthcare

Is healthcare different? TOPIC 2 (next)

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