ALL INDIA INSTITUTE OF MEDICAL SCIENCES

JODHPUR

COLLEGE OF NURSING

TOPIC- HEALTH ECONOMICS

SUBJECT- ADVANCED NURSING PRACTICES

SUBMITTED TO: SUBMITTED BY:

MR. SANJAY SIR ANWAR HUSSAIN

NURSING TUTOR M.Sc NURSING 1ST YR

COLLEGE OF NURSING COLLEGE OF NURSING

AIIMS JODHPUR AIIMS JODHPUR

WHAT IS ECONOMICS :
• Economics is the science of scarcity. It analyses how choices are structured and prioritized to
maximize welfare within constrained resources.

• Economics is the study of distribution of scarce resources commonly known as goods and
services across a population.

WHAT IS HEALTH :
According to World Health Organization's (WHO) constitution health is 'a state of complete
physical, mental and social well being and not merely the absence of disease or infirmity'.

DEFINITIONS OF HEALTH ECONOMICS :

Health economics is the study of distribution of health care. It is a branch of economics
concerned with issues related to efficiency, effectiveness, value and behavior in the production
and consumption of health and health care.

TERMINOLOGIES IN HEALTH ECONOMICS :-

• GNP [GROSS NATIONAL PRODUCT ]: is the gross income generated within the country and
income received from abroad.

• GDP [GROSS DOMESTIC PRODUCT]: it is the gross income generated within the country
excluding the money from abroad.

• Poverty line: It is the level of income needed to meet the is Rs.32 and Rs 47 in rural and urban
areas respectively.

• Per capita income: It is also known as income per person. It is the mean income of people in
an economic unit such as a country or city. It is calculated by taking a measure of all sources of
income in the aggregate (such as GDP or gross national income) and dividing it by the total
population.

• Demand: An economic principle that describes a consumers desire and willingness to pay a
price for a specific good/service.

• Supply: A fundamental economic concept that the total amount of a specific good or service
that is available to consumers.
• Scarcity: According to him, economics is a science that studies human behavior as a
relationship between ends and scarce means which have alternative uses. When demand
overcomes the supply, the scarcity arise.

•Cost: cost refers to the amount of money spent on health services under the various heads of
account.

PRINCIPLES OF HEALTH ECONOMICS :

Health economics works on two principles :

1].Microeconomics: - It deals with the behaviors of the individuals and organizations and
the effects of those behaviors on prices, costs, and the allocating and distributing resources.

It has following factors:-

A]. Supply and demand: These both factors are interrelated to each other because if there is no
demand then there is no supply, but if there is good demand then there is a good supply and
the cost of demanding objects will be higher.

B].Efficiency: - It refers to producing maximal output, such as good or services, using a given set
of resources, such as labor, time, and money.

C]. Effectiveness: services meets a stated goal or objective, or how well a program or services
achieves.

2]. Macroeconomics: -
It deals with the large-scale or general economic factors, such as interest rates and national
productivity , inflation .

It has two factors:-

GNP & GDP: - The Gross National Product and Gross Domestic Product are the conventional
terms used to understand the performance of the economy.

These indicate the sum total of three components in a country :-

•Personal consumption

•Expenditure of goods and services

•Investment expenditure.

GNP & GDP serves as measures of total production of

goods and services in a country during year.

HEALTH ECONOMIC ANALYSIS :-

Thereare four main types of economic analysis in health:

1].Cost-minimization analysis [CMA]:-This approach compares the costs of alternative forms of

treatment or management that produce equivalent health outcomes.

It is a specific type of economic evaluation in which outcomes of competing interventions are

the same, in which the only inputs that is cost is taken into consideration. Aim is to decide the
least costly way of achieving same outcome

In this the inputs are compared and outputs are considered to be equal, which rarely so.

2].Cost benefit : - In this type of analysis all outputs are measured in monetary terms.

3]. Cost effectiveness analysis [CEA]:- CEA is a ratio of the difference in costs to the difference
in effectiveness of the interventions under consideration.

When different health care interventions are not expected to produce the same outcomes both
the costs and consequences of the options need to be assessed.

Here a clinical output such as morbidity,mortality, reduction in blood pressure, or quality of life,
etc. is measured as a measure of effectiveness .

4].Cost Utility analysis :-A cost-utility analysis is defined as a type of cost-effective analysis that
compares different procedures and outcomes relative to a person's quality of life.

Measures the effect of an intervention on health units that measures both quantity and quality
of life.

Measures the quality of life, not just the numbers of years lived in a particular health state

Eg: QALY
NEED FOR HEALTH ECONOMICS :-

IMPORTANCE OF HEALTH ECONOMICS:-

•To formulate health services.

•To establish the true costs of delivering health care or to estimate all real costs like the use of
patients' time, loss of output elsewhere in the system etc.

•To evaluate the relative costs and benefits of particular policy options.

•To estimate the effects of certain economic variables like user charges, time and distance costs
of accessibility, etc on the utilization of health services.

FEATURES OF HEALTH ECONOMICS :-

•Health and medical care is considered as economic goods.

• Health is a private or a public good.

•Measurement of health is also considered in economics

•Stock of health.

•Investment aspects of health.

•Loss due to ill health.

• Resource costs of different diseases, effects of health and medical care provision.

•Planning of health and medical care Choice of technology in health care system , etc.

•Provision of equity in health outcomes and health care.

AREAS OF HEALTH ECONOMICS :-

•Economic aspects of relationship between health status and productivity.

• Financial aspects of health care services.

•Economic decision making in health and medical care institutions.

• Planning of health development and such other related aspects.

FACTORS INFLUENCING HEALTH ECONOMICS :-

• Price Inflation

• Changes in population demography

•Technology

•Chronic illness

•Lack of education

•Environmental degradation

•Ignorance and lethargic attitude

FINANCING OF HEALTH CARE :-

•PUBLIC SUPPORT

•PRIVATE SUPPORT

-Insurance

-Employers

-Individuals

-Managed care arrangements Medical saving account

-Medical saving account

STEPS FOR GOOD HEALTH ECONOMICS :-
1. Record expenses.

2. Make a budget.

3. Plan on saving money.

4. Set savings goals.

5. Decide on priorities.

6. Different savings and investment strategies for different goals.

7. Make saving money easier with automatic transfers.

8. Watch your savings grow.

MAJOR PROBLEMS IN HEALTH FINANCE :-

 Lack of funds.
 Unequal distribution of health finances.
 Rising health cost.
 Lack of coordination of health financing units.
 Wastage and insufficiency spending the funds.

RESPONSIBILITY OF NURSE :-
• Nurses play a central role in cost containment, care quality, and patient safety.
• Nurses actively engages in leading efforts to improve patient care and reduce
costs.
•Health care Issues And Trends.
•Governing on Behalf of Stakeholders.
• Monitoring Financial Performance.
•Building a Culture of Quality and Safety.
•Monitoring Quality Performance.
•Set policy That guides care delivery.
•Set strategy to help ensure the future health of a Vital community resource.
• Assume a valued Community leadership role.
•Help the boards identify, clarify, and focus on the wants and needs of the
patients.
SUMMARY :-
Today We Have Discussed About Health Economics : Define Economics , Define Health , Define
Health Economics , Terminologies In Health Economics , Priniciples Of Health Economics ,
Health Economics Analysis , Need For Health Economics , Features Of Health Economics , Area
Of Health Economics , Factors Of Health Economics , Financing Of Health Care , Steps For Good
Health Economics , Major Problem In Health Finance , Responsibility Of Nurse .

RESEARCH RELATED ARTICLES

Cost minimization analysis of nasopharyngoscope reprocessing
in community practice .

AUTHOR :-AmeenBiadsee , Lauren Crosby , Winsion Chow , Leigh J Sowerby,.

Abstract:-
Background: Reprocessing of nasopharyngoscopes represents a large financial burden
to community physicians. The aim of this study was to perform a cost analysis of
nasopharyngoscope reprocessing methods at the community level.

Methods: surveys were distributed by email to community otolaryngologists.

Surveys were comprised of 14 questions assessing clinic size, nasopharyngoscope

volume, scope reprocessing method and maintenance.

Four manual techniques were evaluated:

(1) soak with Cidex solution.

(2) soak with accelerated hydrogen peroxide solution .

(3) disinfection with chlorine dioxide wipe.

(4) UV-C light system.

Results:

Thirty-six (86%) otolaryngologists responded and answered the survey. The cost per
reprocessing event for Cidexsolution ,hydrogen peroxide solution , chlorine dioxide wipe
and UV system were $38.59, $26.47, $30.53, and $22.74 respectively

Sensitivity analyses demonstrated that hydrogen peroxide solution was the least costly
option in a low volume, however, the UV system remained the most cost effective in higher
volumes.

Conclusions :

The UV light system appears to be the most cost-effective method in high volumes of
reprocessing, and hydrogen peroxide is cheaper in lower volumes and when performed by
clinic staff rather than physicians.
BIBLIOGRAPHY
1].Diwakar G. Health care delivery system in India. The Heinz school review, 2006:3(2): 34-
6.

2]. KK Gulani. "Community health nursing", 2005 edition, p 606-7.

3]. K Park. "Preventive and Social Medicine", 18th edition, p 640-8.

4]. Mary A Neis. Community Health Nursing, 3rd edition, p 219.232-4.

5]. TBhaskaraRao. "Community medicine", 2004 edition, p $19-32.