HEALTH ECONOMICS EVALUATION IN HEALTH PLANNING

Abstract

ABSTRACT

Health economics is the application of economic theory, models and empirical techniques to the analysis of decision-making by individuals, health care providers and governments with respect to health and health care. Application of health economics is used to varying degrees in the health systems. The widespread its use is, and the purposes for which it is used, depend to a great extent on the country’s dominant health system, whether public, social insurance or private insurance based. Health planning doesn't always get the attention that it deserves; when it does, many planners discover that the planning process isn't as easy as they thought, it would be or that even the best‐laid plans can go wrong. This is the reason that health economics evaluation becomes important and a major tool to ensure excellent planning process in health care.In healthcare, most commonly used methods of health economic evaluations are;cost minimization analysis, cost-effectiveness analysis, cost-utility analysis and cost-benefit analysis. Health economics evaluation is exerting an influence on planning decision making at all levels of health care. It seeks to facilitate decision making plan by offering an explicit decision making plan framework based on the principle of efficiency. But health economics evaluation is not the only consideration to be taken in decision making or health planning. Health economics evaluation is not mean to replace other tools in health planning, but it is an important one and health planners will need to have an understanding of its basic principles and how it can impact on decision making and planning.

Keywords: Health Economics, Evaluation, Health Planning