I N T R O D U C T I O N

ECONOMICS HEALTH HEALTH ECONOMICS

PHARMACOECONOMI CS

ECONOMICS
Is the study of the activities that involve production and exchange of goods

ECONOMICS
The science of choice

ECONOMICS
The study of commerce among nations

.ECONOMICS The study of man and how he runs the economic activities.

capital and wealth .ECONOMICS  The study of money. banking.

CHARACTERISTICS OF ECONOMICS .

Economic resources will always be scarce and people will always struggle to work against scarcity .1.

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.2. There is a universal objective of attaining the maximum output out of a given input.

Economic Resources 1. Land 2. Capital 5. Technology 4. Labor 3. Market .

LAND .

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LABOR .

Capital .

Technology .

Market .

4.Non-Economic Factors 1. 2. 5. Government Religion Education Social structure Values Culture . 3. 6.

Economics is about making CHOICES.Components of Economics 1. 2. . or to the recipients of the commodities. Economics is analyzing the different CHOICES and their COSTS. The choices and their costs will give an EFFECT ON THE FUTURE of those who make these decisions. 3.

unemployment government economic policies and taxation . wages.Macroeconomics (national Income Analysis) is the study of the functioning of the economy as a WHOLE interest rates and currency exchange trends in prices output. inflation.

consumption. saving. effort.Microeconomics (Price theory) • Is the study of smaller and individual entities • How the industries price the goods. and allocation • How household allocate and use their financial and other resources .

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Macroeconomics and Microeconomics Differentiated Terms associated with Macroeconomics •Gross national Product •Gross Domestic Product •Aggregate supply aggregate demand •Employment/unemployment •Fiscal policy •Government and taxation •Foreign trade/Balance of trade •Inflation/Deflation •Interest rate •Foreign exchange Terms Associated with Microeconomics •Pricing •Household allocation of resources •Household spending and saving •Price and income elasticities .

Criteria in Classifying Phases of Economic Development A. Means Livelihood
1. 2. 3. 4. 5. Hunting and fishing phase Pastoral phase Handicraft phase Agricultural phase Industrial phase

Criteria in Classifying Phases of Economic Development B. Extent of Economic Activity
1. Household economy 2. Village economy 3. National economy 4. International economy

Criteria in Classifying Phases of Economic Development C. Medium of Exchange
1. Barter economy 2. Money economy 3. Money and credit economy

Money
“Money is a guarantee that we may have what we want in the future. Though we need nothing at the moment, it ensures the possibility of satisfying a new desire when it arises” - Aristotle “Money is like a sixth sense, and you can’t make use of the other five without it.” – W. Somerset Maugham

Money .

Purposes of money • • • • Medium of exchange Unit of account Store of Value Standard of deffered payment .

Economic System  is responsible for improving economic conditions of the people .

Types of Economic System • • • • Traditional Command Market Mixed .

Traditional .

Command .

Market .

Effectiveness of ES is measured by the following Criteria • Abundance • Stability • Security • Economic freedom • Growth • Efficiency • Justice and Equality .

Health .

HEALTH WHO DEFINED AS:  The state of mental. and does not merely connote the absence of illness . physical. and social well being.

Absence of symptoms does not necessary connote healthfulness .NOTE: An individual who does not experience any symptoms of disease may not necessarily be healthy.

Health .

DIMENSIONS OF HEALTH ENVIRONMENT SOCIETAL Physical Mental Emotional Spiritual Social Sexual .

Physical health .

Mental health .

Emotional Health .

Dental health status – decayed. Health measures Measures of the health status of people: a. Percentage of low birth weight babies . missing and filled teeth. index c. Average height of population – proxy for nutritional status d.How is “health” objectively measured? There are a number of ways of measuring health 1. Vital statistics – height and weight b.

drinking alcohol. Health behavior indicators a. using drugs. eating a healthy diet. practicing safe sex or planned fertility b. percentage of women screened for cervical and breast cancer . Specific behavior Examples: percentage of children immunized against childhood illness.2. People’s behavior Examples: number of people smoking.

Environmental indicators a. Wealth (3 components) Examples: life expectancy. People’s health related beliefs and attitudes .3. Measurement of physical environment Example: air and water quality b. GNP – a measure of country’s wealth c. Socio-economic indicators a. Social environment Example: housing type and density 4. and income b. educational attainment.

HEALTH ECONOMICS deals with the manipulation of factors that should be able to give people “better health” .

WHAT factors influence HEALTH? .HOW do we manipulate HEALTH? To answer …… we have to study and ask ……. WHAT determines health? Or simply.

structure. Attitudes Household • Income/wealth • Age-gender composition • Social network Community Underlying SocioAge. and cultural factors Individual • • • Determinants of Health: Major Effects and Intervention Points Proximate Factors •Health Care Services •Environmental Contamination •Nutrient Dietary intake •Fertility •Injury Health Outcomes •Mortality •Morbidity •Nutritional Status •Disability • Health benefits.Underlying socioeconomic. gender Economic. Education Demographic. and distribution • Social structure and organization . demographic. and Occupation Cultural Factors • Ecological climate • Markets & prices • Transportation size.

Top 10 Leading Diseasess (mortality) • Disease of the heart • Disease of the vascular system • Pneumonia • Malignant neoplasm • TB. all forms • Accident • Chronic obstructive pulmonary & allied conditions • Other diseases of the respiratory system • Diabetes Mellitus • Diarrheal disease .

respiratory • • • • Hypertension Malaria Chicken pox Diseases of the heart • Measles .Top 10 leading Diseases (morbidity) • • • • • Diarrhea Pneumonia Bronchitis Influenza TB.

Environmental factors 4. Genetic and biological factors 2. The extent and nature of health services . Lifestyle factors 3.Major Determinants of Health 1.

butchers.g.g. Small employers and own account workers e.A. Lower managerial and professional e. Never worked and long term unemployment . publicans. cleaners. Social and Health Social Class Classification 1. Lower supervisory. plumbers. couriers 7. road sweepers. Secretaries. play group leaders. Nurses.g. Intermediate e. Printers.g. pharmacist 3. Waiters. Higher managerial and professional e. craft and related occupation e.g. soldiers. taxi drivers 5. farmers. clerks 4. bank managers. senior civil servants 2.g. Semi-routine occupations e. train drivers 6. company directors.

giving of children sweets . Psychological Examples: stress and lack of social support 3. Physiological Examples: inadequate or unfit housing. Behavioral Examples: smoking or drinking alcohol. Income and Health Ways in which low income can affect health 1. lack of food.B. lack of fuel 2.

unknown number of families share unsuitable or inadequate accommodations .housing quality and its lack of availability can damage health .problems of homelessness respiratory illness depression high rates of infections difficulties in gaining access to health services . Housing and Health .C.

it affects self-esteem . Employment and Health .work is important to consider as a social determinant of health .the type of employment may itself affect health Examples: mining – exposure to hazardous substance or stress publicans – high risk of developing cirrhosis .it determines income level .D.

Genders refers to the social categorization of people as men or women.men are encouraged to be aggressive and risk-taking both at work in their leisure time – higher rates of accidents and alcoholism . dependent and sick .E.women working – increased stress and ill health . and the social meaning and beliefs about sexual differences .women are socialized to be passive. Gender and Health .

black and ethnic minority experience more ill health.little information of health. poor working conditions. chronic and mental ill (sickle cell anemia. thalassaemia and Tay-sachs disease) . low income.F. unemployment and poor housing shared by those in lower social classes . Health of Ethnic Minorities .

nutritional status (weight for age or height ) 2. Distinct figures Examples: life expectancy (length in years. Ratios Examples: mortality rates. morbidity rates.Health Outcomes They can be… 1. incidence and prevalence .

Fertility Rate measures the reproductive capacity of groups Crude Birth Rate = Total number of live births (CRB) midyear population x 1000 .Examples of Health Outcomes 1.

Mortality Rate measures risk of dying within a specific group or dying from a cause Crude Death Rate (CDR) = number of deaths. all causes x 1000 midyear population Cause Specific Death Rate (CSDR) = number of deaths from specific cause x F midyear population .2.

Mortality Rate measures risk of dying within a specific group or dying from a cause Infant Mortality Rate (IFR) = infant mortality rate <1 year age x 1000 Total number of live births .2.

3. Morbidity Rate measures the frequency of illnesses within specific population Prevalence Rate (PR) = Number of new and old cases within a period x 100 midyear population Incidence Rate (IR) = Number of new cases XF Population at risk .

Health outcome before the health program Compare Health outcome after the health program Health Program .

Proximate factors and health programs developed Proximate factors Health Care Service Utilization Environmental Contamination Nutrient Dietary Intake Fertility Injury Health Programs Developed OPLAN Bakuna with Jollibee. Vitamin A Campaign “Responsible Parenthood” Information Drive “Don’t Drink and Drive” . Worker Health and Safety Program Barangay Day Care Centers. OPLAN Alis Disease Anti-pollution Campaign.

Example A: Individual Level Occupation as a >>> Exposure to mining >>> increased coal miner contaminants incidence of worker’s lung disease (Occupation as underlying determinant) (Environmental contamination as proximate determinant) (Health Status/ outcome) .

Example B. height) (Health status/ Outcome) (Income/Wealth as underlying determinant) (Nutritional intake as proximate determinant) . Household Level Low household Income >>> Poor nutritional >>>> Poor nutritional intake status (low weight.

Example C. Community Level Poor transportation >>> Poor health care >>> More deaths in transportation network (Transportation as underlying determinant) (Healthcare service utilization as a proximate factor (Health Status/ Outcome) service utilization the area .

Relationship Of health and Economic ! Improvement in Health status More resources allocated for health Improvement in worker productivity Contributes to better economy ? .

HEALTH ECONOMICS .

Health Economics .

Health Economics  Can be defined broadly as the application of the theories. techniques of economics to the health care sector . concepts.

training conditions conducive to medical research . control programs. It deals with the analysis of the economic costs of disease. ROI in education.

Quantity of resources used in healthcare delivery to improve health 3. Allocation of resources between various health promoting activities 2. Efficiency of the allocation and use of resources for health 5.Health economics concerned 1. and rehabilitative health . curative. Organization and funding of health organizations 4. Assessment of the effects of preventive.

CIRCULAR FLOW OF PHARMACOECONOMIC ACTIVITY .

LAND. LABOR.CAPITAL (Resources) (Resource Owners) HOUSEHOLDS (Organizers and Users Of Resources) FIRMS GOODS & SERVICES (Output) THE CIRCULAR FLOW OF THE PRODUCTION PROCESS .

value of life. Educational. health indices.FRAMEWORK OF HEALTH ECONOMICS WHAT IS HEALTH? WHAT IS ITS VALUE? Perceived attributes of health. BUDGETING AND MONITORING MECHANISMS Evaluation of Effectiveness G EVALUATION WHOLE SYSTEM LEVEL Equity & Allocative Efficiency Criteria . and Income B E MICRO ECONOMIC EVALUATION CMA CEA CBA CUA C DEMAND FOR HEALTHCARE F MARKET EQUILIBRIUM Money Prices Time Prices Equilibrating mechanism Influences of A and B on Health Care Seeking Behavior D Costs of Production Alternative Production Techniques Input Substitution SUPPLY OF HEALTHCARE H PLANNING. A WHAT INFLUENCES HEALTH? Occupational Hazards.

Flow refers to the measure of movement of quantity over a period of time . Consumption STOCK and FLOW CONCEPTS 1. Production 2. Stock = refers to the measure of quantity at a point of time 2.2 Basic Activities undertaken In Pharmacoeconomics 1.

THE FLOW OF OUTPUT BETWEEN FIRMS AND HOUSEHOLDS Raw Materials Firms Raw materials Intermediate Good Firms Intermediate goods HOUSEHOLDS Final goods Final Goods Firms .

THE CIRCULAR FLOW OF GOODS AND INCOME AMONG PRODUCERS AND HOUSEHOLDS ECONOMIC RESOUCES HOUSEHOLDS Payment RAW MATERIAL PRODUCERS ECONOMIC RESOUCES Payment ECONOMIC RESOUCES INTERMEDIATE GOODS PRODUCERS Payment Final Goods Payment FINAL GOODS PRODUCERS .

Pharmacoeconomics • means by which pharmacists can demonstrate the value of their products and services .

Pharmacoeconomics  the description and analysis of the costs of drug therapy to healthcare systems and society .

distribution. promotion and consumption of pharmaceutical drug products . key environmental forces.Pharmacoeconomics Art and science of investigating the varied conditions. laws and regulations involving the production.

5 factors to consider in pharmaceutical economics  Pharmaceutical business and professional challenge  The availability of drugs and services satisfying customers  The physical distribution of healthcare products  The usage/consumption of drug products and services  The allocation of resources .

3. Identify. Measure. 2. Compare the costs and consequences of pharmaceutical products .Pharmacoeconomic research 1.

Goal of Pharmacoeconomics  To help decision makers allocate a fixed amount of resources across competing products and services so as to maximize health benefits to the population of patients they serve .

INPUT .PROCESSES FUNCTIONAL CAPACITY Cardio Respiratory Nutritional Muscular Fitness Good Eating FitnessHealth Good Exercise OUTPU T Motor Fitness No Stress And Tensions QUALITY OF LIFE .

2 Types of Trading Businesses • Retail Trading Businesses • Wholesale Trading Businesses .

Extractive Business . Consumer Goods 2.2 Types of Goods 1.Manufacturing business 2. Industrial Goods 2 Types of Industrial Businesses 1.

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