A QUICK ONE ON RELATIONSHIP BETWEEN HEALTH ECONOMICS & PRIMARY HEALTH CARE.

Health economics plays a crucial role in the context of primary health care (PHC) by examining the allocation of
resources, the efficiency of healthcare delivery, and the economic impact of different health interventions at the
primary level. Here are several ways in which health economics is related to primary health care:

Resource Allocation: Health economics helps in the efficient allocation of limited resources in the healthcare system.
This is particularly important in primary health care settings where resources may be scarce. Economists analyze the
costs and benefits of different primary health care interventions to ensure that resources are directed towards the
most effective and cost-efficient services.

Cost-effectiveness Analysis: Health economists conduct cost-effectiveness analyses to evaluate the efficiency of
primary health care programs and interventions. This involves comparing the costs of implementing a particular
health intervention with the health outcomes achieved. This information is essential for policymakers and healthcare
providers to make informed decisions about resource allocation.

Healthcare Financing: Health economics examines different models of healthcare financing, including how primary
health care services are funded. Understanding the financial aspects of PHC is crucial for developing sustainable
financing mechanisms that ensure access to essential health services for all, especially in resource-constrained
settings.

Economic Evaluation of Health Policies: Health economists assess the economic impact of health policies related to
primary health care. This includes evaluating the effects of policies on healthcare access, health outcomes, and overall
economic productivity. Policymakers use this information to design and implement effective health policies.

Equity in Healthcare: Health economics also addresses issues of equity in primary health care delivery. It examines
how healthcare resources and services are distributed among different population groups, ensuring that vulnerable or
marginalized populations have access to essential services without facing financial hardship.

Health Insurance and Universal Health Coverage: Health economics contributes to the design and evaluation of
health insurance schemes, which are critical for achieving universal health coverage. By analyzing the economic
implications of different insurance models, economists help policymakers develop systems that provide financial risk
protection and ensure access to primary health care for all citizens.

Incentive Structures: Health economists study incentive structures for healthcare providers in primary health care
settings. This involves understanding how payment systems, reimbursement mechanisms, and performance incentives
influence the behavior of healthcare professionals and organizations, with the goal of improving the quality and
efficiency of care.

Reflecting on key takeaways relevant to effective health financing back home in Nairobi:
1. Collaboration between health and finance ministries is essential.
2. National and sub-national governments must foster collaboration.
3. Access to health should not hinge on employment; advocate for non-contributory systems in revenue raising.
4. Emphasize financial and non-financial performance monitoring (our paper Budget monitoring, accountability
practices and their influence on the efficiency of county health systems in Kenya | PLOS Global Public Health
published today addresses this).
5. Advocate for pooling resources in health, recognizing that not every issue needs a separate solution.
6. Propose capitation or blended capitation as the preferred provider payment mechanism at the primary healthcare
level.
7. Information sharing is at the center of #1, #2, #4

And of course, most relevant for us in Kenya now, is leveraging political interests for progress toward effective health
financing for Universal Health Coverage.