While the need and demand for healthcare services are still increasing, the resources available for healthcare are limited. Therefore, guaranteeing the best value for money spent on healthcare has been a priority, with economic consideration and evaluations becoming increasingly prominent (Turner et al., 2021). Healthcare economic evaluations have been utilized for the optimal allocation of resources. The objective of the economic evaluation is to ascertain, quantify, appraise, and contrast the expenses and outcomes of multiple substitute initiatives or programs. Therefore, evaluations in health economics allow policymakers to execute more successful health initiatives, which makes it the lifeblood of health economics. The evaluation in health economics offers a framework that analyzes the multifaceted interplay between the healthcare system’s resource allocation, cost, and effectiveness. Therefore, exploring the significance of evaluation, comparing different types of analysis, examining how they relate to health policy, and how technology is changing the evaluation landscape will provide an in-depth understanding of its role in healthcare.
The Significance of Evaluations in Health Economics.
Health economic assessments can help determine how cost-effective a health intervention is and how best to distribute the few resources available for healthcare. As a result, resources are not wasted or misappropriated, which improves healthcare’s economics. This is specifically helpful to decision-makers when considering the utilization of the public budget to finance care delivery (Mosadeghrad et al., 2022). Evaluations aid in the prioritization of interventions according to their cost-effectiveness, guaranteeing that funds are allocated to those that have the highest health benefit per dollar spent. Evaluations in health economics play a significant role in increasing healthcare effectiveness, which in turn boosts healthcare access and equity. Assessments have the ability to spot any disparities in outcomes or access, which can direct policymakers toward more equity in the provision of healthcare.
The Four Types of Economic Analysis as They Relate to Health Economics.
There are four types of economic analysis that are based on similar principles. They are all utilized to inform and assess healthcare interventions. Despite the similarities and their appearance to be interchangeable, they vary in their basic interpretation and methodology (Turner et al., 2021). The first one is cost-benefit analysis. In this method of assessment, a comparison is made between the intervention’s cost and its benefit. It also expresses the advantage or consequence of the intervention in terms of money. The second type is cost-effective analysis. This analytical technique compares the intervention’s cost to its effectiveness. Therefore, unlike cost-benefit analysis, cost-effective analysis measures the health consequences of the intervention as a single natural unit. The third type is the cost minimization analysis. The costs of two or more interventions yielding the same result are measured using this approach of analysis. Next, the intervention with the lowest cost is selected. Unlike the other two evaluation types, the cost minimization strategy can only be used when the outcomes of the comparing interventions are similar (Sandesh Adhikari, 2020). The fourth type is the cost-utility analysis, where the cost incurred in the intervention is compared against the utility related to health. This approach is particularly useful when the program has several goals, and it’s crucial to understand both the quantity and quality of life.
How Economic Evaluations and Health Policy Are Related
The relationship between health economic evaluation and healthcare policy is the fact that economic analysis informs health policy. Economic evaluations assist health policymakers in implementing increasingly effective healthcare policies. Because of the scarcity of resources, policymakers must select alternative programs with varying outcomes as presented from economic assessments. Therefore, economic evaluations contribute to the development of health policy by offering decision-makers evidence-based guidance. The Value Framework of the American Society of Clinical Oncology (ASCO) is a great recent example of the relationship. This methodology helps oncologists choose therapies that maximize patients’ economic worth and clinical benefit by using cost-effectiveness data. According to Feldman et al. (2020), another recent example is when the Advisory Committee on Immunization Practices (ACIP) in the US employed economic analysis to recommend the pneumococcal vaccine based on its net financial benefit.
The Role of Technology in Economic Evaluations
Over the last few decades, the healthcare environment has witnessed rapid technological advancement. Technological advancement has impacted every aspect of the healthcare setting, including economic evaluation (Turner et al., 2021). The field of economic analyses is changing due to technology since it plays a significant role in allowing the utilization of large datasets for more thorough and reliable analyses. This is made possible by big data analytic tools for researchers. Moreover, it is possible to automate cost-effectiveness evaluations and find areas where money can be saved by using machine learning.
In conclusion, there is a growing need and demand for healthcare services, yet there are not enough resources to meet this demand. Therefore, economic considerations and evaluations have become more and more prominent to ensure the best value for money spent on healthcare. Economic analyses of healthcare have been used to determine the best way to allocate resources. Health economic assessments can help determine how cost-effective a health intervention is and how best to distribute the few resources available for healthcare. As a result, there is less wastage and misappropriation of funds.
References
Feldman, C., Dlamini, S. K., Madhi, S. A., Meiring, S., von Gottberg, A., de Beer, J. C., de Necker, M., & Stander, M. P. (2020). The cost-effectiveness of using pneumococcal conjugate vaccine (PCV13) versus pneumococcal polysaccharide vaccine (PPSV23) in South African adults. PLOS ONE, 15(1), e0227945. https://doi.org/10.1371/journal.pone.0227945
Mosadeghrad, A. M., Jaafaripooyan, E., & Zamandi, M. (2022). Economic Evaluation of Health Interventions: A Critical Review. Iranian Journal of Public Health, 51(10). https://doi.org/10.18502/ijph.v51i10.10975
Sandesh Adhikari. (2020, July 17). Economic Evaluation, Types of economic evaluation! Public Health Notes. https://www.publichealthnotes.com/economic-evaluation-types/
Turner, H. C., Archer, R. A., Downey, L. E., Isaranuwatchai, W., Chalkidou, K., Jit, M., & Teerawattananon, Y. (2021). An Introduction to the Main Types of Economic Evaluations Used for Informing Priority Setting and Resource Allocation in Healthcare: Key Features, Uses, and Limitations. Frontiers in Public Health, 9. https://doi.org/10.3389/fpubh.2021.722927
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