What is the best way to allocate Health Resources?

- The criteria to assess and

evaluate the performance of the allocation system is through economic efficiency.
- Efficiency - pertains to the optimal or best use of resources. It occurs when
society is using its scarce resources to produce the highest possible quantity of
goods and services that consumers wanted to buy. There are two parts of
economic efficiency:
productive efficiency – is a situation in which an economic system (hospital) could
not produce anymore of one good without sacrificing production of another good.
This implies that the economy is using the least amount of health resources to
produce certain health care at the lowest possible cost.  allocative efficiency – is
concerned with the optimal distribution of goods and services. It is manifested if
no health resources are being wasted.
- Equity – refers to the actions, treatment of others, or a general condition
characterized by justice, fairness and - impartiality. Health equity means giving
patients the care they need when they need it. Two categories of equity:
Horizontal equity - is concerned with equal treatment with equal needs.
Allocation of health care services will be horizontally equitable if patients with the
same complaint will be diagnosed and treated in identical and similar way.
Vertical equity - is concerned with the extent to which individuals who are
unequal should be treated differently. Allocation of health care services should be
provided in accordance with people’s need. More treatment shall be given for
those with serious conditions that need utmost attention.

What is the difference between goods and services?

Efficiency is the optimal use of
productive health care resources at a
lowest possible cost and no possible
waste occur.
Health equity implies that everyone
should have fair opportunity to attain
their full health potential and no one
should be disadvantage from achieving
this potential.