StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Economics of Health Care - Assignment Example

Cite this document
Summary
 This essay discusses cost-effectiveness because its analysis is easier to understand because its units of measure are in natural form (units). This leads to its adoption by many non-economist health professionals because they can easily interpret its results…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER98% of users find it useful
Economics of Health Care
Read Text Preview

Extract of sample "Economics of Health Care"

 Economics of Health Care 1. Hurley, Ch. 4 End-of-Chapter Question A.1 True It is true that cost effectiveness is poorly suited for programs with multiple types of health outcome. This is because cost effectiveness is most effective in situations where the dominant outcome of concern is only one. Cost effective analysis is easier to understand because its units of measure are in natural form (units). This leads to its adoption by many non-economist health professionals because they can easily interpret its results. The method is disadvantaged when a program produces multiple diverse outcomes. Cost effectiveness analysis cannot be able to integrate all the generated outcomes into a single summary that can be used for the analysis (Hurley 2010, 111). 2. Hurley, Ch. 4 End-of-Chapter Question A.5 False The statement is false because the incorporation of a subjective utility weight in the calculation of quality adjusted life years does not affect the question of allocative efficiency. An allocative efficiency deals with allocation of resources; on the other hand, cost utility measures the quality of adjusted life years. The use of cost utility will, therefore, be inappropriate when subjective utility weight is incorporated. According to Hurley (2010, 109), to address the question of allocative efficiency, it requires the use of the cost-benefit analysis. This is because the potential Pareto criterion method is required for the analysis (p.109). 3. Hurley, Ch 4 End-of-Chapter Question B Program A prevention year Cost ($) 3% factor DPV Effects (QALYs) 3% factor DPV 0 2500 2500 0 0 1 2500 1 2575 0 1 0 2 2500 1.03 2652.25 0 1.03 0 3 2500 1.0609 2731.8 0 1.0609 0 4 2500 1.09272 2813.775 0 1.09272 0 5 0 1.12551 0 0 1.12551 0 6 0 1.15927 0 0 1.15927 0 7 0 1.19405 0 0 1.19405 0 8 0 1.22987 0 0 1.22987 0 9 0 1.26678 0 1.0 1.26678 1.30477 10 0 1.30477 0 2.5 1.30477 3.3598 11 0 1.34392 0 2.5 1.34392 3.460575 12 0 1.38423 0 5.0 1.38423 7.1288 13 0 1.42576 0 5.0 1.42576 7.34265 14 0 1.46853 0 5.0 1.46853 7.56295 Total 12500 13272.825 21 30.159545 Program B treatment year cost 3% factor DPV effects 3% factor DPV 0 1000 1 1000 1 1 1 1 1000 1.03 1030 1 1.03 1.03 2 1000 1.0609 1060.9 1 1.0609 1.0609 3 1000 1.09272 1092.72 1 1.09272 1.09272 4 1000 1.12551 1125.51 1 1.12551 1.12551 5 1000 1.15927 1159.27 1 1.15927 1.15927 6 1000 1.19405 1194.05 1 1.19405 1.19405 7 1000 1.22987 1229.87 1 1.22987 1.22987 8 1000 1.26678 1266.78 1 1.26678 1.26678 9 1000 1.30477 1304.77 1 1.30477 1.30477 10 1000 1.34392 1343.92 1 1.34392 1.34392 11 1000 1.38423 1384.23 1 1.38423 1.38423 12 1000 1.42576 1425.76 1 1.42576 1.42576 13 1000 1.46853 1468.53 1 1.46853 1.46853 14 1000 1.51259 1512.59 1 1.51259 1.51259 Total 15000 18598.9 15 18.5989 ICER ICER = (CB – CA) / (EB – EA) =  = 5326.075 / (-11.560645) = (460.7074) 4. Question on Cost Benefit Analysis Net Benefit = (Benefit A - Benefit B) - (Cost A - Cost B )4 Population 2.3 million Vaccinated 80% of 2.3 million Vaccine cost $30 per dose Severe reaction 1 per 100000 of (80% 0f 2.3m) Cost $1830 per case Prevent 58 cases among vaccinated saving $8,145 per case Save 9 lives out of the 58 cost $1m Costs = vaccinated student 80% of 2.3m = 1,840,000 students Cost = 1,840,000× $30 = $55,200,000 Severe reaction = 1,840,000/100000 = 18 Cost = 18×$1,830 =$32,940 Benefits Prevention = 58×$8,145 = $472,410 Saved lives = 9×$1,000,000 =$9,000,000 a) The total annual benefits Prevention + saved lives = $472,410 + $9,000,000 = $9,472,410 b) Total annual costs Vaccine dose + severe reaction cost = $55,200,000 + $32,940 = $55,232,940 c) Total annual net benefits Benefits – costs = $9,472,410 - $55,232,940 = ($45,760,530) The result is negative. This means that the annual costs for carrying out the exercise is very expensive compared to the benefits that the university gets in terms of savings. Basing on the cost-benefit analysis, it is recommended that the university does not carry out the vaccination process. This is because of the high cost of this process. The program does not pass the cost-benefit analysis test because it gives a negative net benefit. Negative net benefit means that the implementation of the exercise would result in losses rather than gain in comparison to the effort used. 5. Question on Health production Theory The theory states that education induces greater taste for health. This means that health and education are causally related in instances where a third factor is missing. Focusing on the graph, it shows that both a better taste for more education and higher levels of learning are caused by introduction of a third factor such as time. In this case, the lower rate of time leads to a greater investment in both variables resulting in a negatively sloping graph. For this graph, the two are not causal but have a correlation brought in by introduction of a third factor that affects both variables. 6. Question on Flat of the Curve The flat of the curve is a medical situation that means exhaustion of marginal benefit. When used in public health, it simply translates to no additional marginal benefit for further production of population health. Hurley (2010, 172) agrees to this statement, indicating that medicine is at the flat of the curve. Preventive care is still a large field that requires a lot of medical attention. This field is still at its early stages and it will take some time before it reaches flat of the curve. It is especially difficult to prove this hypothesis in acute situations and emergencies as benefits for extra effort bring great results. The best investment in improving public health is education. In the field of public health, there is continuous evolvement of health conditions and newer threats coming up. The best way to deal with this is to be ready to tackle each situation once it emerges, and this can be achieved only through preparedness, which is education. 7. Hurley, Ch. 7 End-of-chapter Question 9 False The statement is false because in this situation, the allocative efficiency hypothesis does not apply. The health care facilities are only built for the sake of the anticipation that there will be a risk of illness occurring. Putting health care needs as people in the society fall ill does not guarantee that its needs will be met, keeping in mind that illness is an unfortunate event. The society works towards preventing the occurrence of a health effect on an individual; therefore, if this statement were true, then there would be no health facilities. 8. Hurley, Ch. 8 End-of-Chapter Question 8 False The statement is false because the work of physicians cannot be substituted by the introduction of psychologists in the public insurance plan. Psychologists will be able to offer the public a wide range of knowledge concerning their healthcare. However, a good insurance plan or knowledge offered by psychologists on health issues does not take away the risk of health problems. It is, therefore, clear that the two appear parallel to each other, meaning there will be very little or no effect of this decision on physicians. 9. Hurley, Ch. 8 End-of-Chapter Question 9 True This statement is true because the orthopedic care is a very vital condition and wrong care for patients suffering from orthopedic ailments can result in severe cases. Regional referral centers have heath physicians that hold more specialized qualifications than those found at the local clinics. Reduction of a medical problem requires specialized physicians to better handle the illness before it worsens. Most patients with skeletal or orthopedic conditions when treated early by the right physician reduce the probability of the same illness occurring. When comparing specialized service at local clinics on this patient with those at the regional referral centers, such a move will yield positive results. References Hurley, Jeremiah E. 2010. Health economics. St. whitby: McGraw-Hill Ryerson. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Economics of Health Care Assignment Example | Topics and Well Written Essays - 1250 words”, n.d.)
Economics of Health Care Assignment Example | Topics and Well Written Essays - 1250 words. Retrieved from https://studentshare.org/health-sciences-medicine/1606193-health-of-economics-canada-assignment-2
(Economics of Health Care Assignment Example | Topics and Well Written Essays - 1250 Words)
Economics of Health Care Assignment Example | Topics and Well Written Essays - 1250 Words. https://studentshare.org/health-sciences-medicine/1606193-health-of-economics-canada-assignment-2.
“Economics of Health Care Assignment Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.org/health-sciences-medicine/1606193-health-of-economics-canada-assignment-2.
  • Cited: 0 times

CHECK THESE SAMPLES OF Economics of Health Care

Economic Factors as Barriers to Effective Health Care

However, other factors play a major role in the hindrance of provision of health care.... This paper will focus on these three economic factors as barriers to proper provision of health care.... The living conditions and financial abilities determine the quality of health care one can get.... It is for this reason that health bodies advocate for free provision of health care when it comes to very serious diseases.... Economic factors as barriers to effective health care Name Institution affiliation Tutor Date Economic factors as barriers to effective health care Introduction Global health is one of the most sensitized issues on the global map....
8 Pages (2000 words) Term Paper

Economic and Global Health Care

Poverty is one of the common factors compromising the quality of health care today.... Global Health Name Institution health care is a basic necessity that involves prevention, diagnosis, and the treatment of human ailments or injuries.... The global health care, on the other hand, is the universal effort to combat major human diseases or ailments.... In the recent decades, the developing nations have joined hands to provide effective health care services in their countries as well as in the third world nations....
10 Pages (2500 words) Essay

History and Evolution of Health Care Economics

History and Evolution of health care Economics in the U.... Name Instructor Course Date Evolution of health care in the U.... The growth of health care has greatly improved compared to the previous centuries when physicians used to trade their services with non-money items such as cattle, goats and cotton just to name a few.... Evolution of health care economics has reduced the risks involved during attention of patients, for example, during the early days those who were considered professionals such as midwives helped their patients at home with little or no care which increased the risk of both the baby and the mother....
3 Pages (750 words) Essay

Health Care Economics

health care ECONOMICS Name University Professor Introduction The Boston healthcare system remains one of the most unique systems within the United States of America.... With many academic institutions offering high standards of medical services, research remains a fundamental aspect of the Boston healthcare system....
8 Pages (2000 words) Article

Health care Economics

Major medical associations of different branches of learning, payers and certain patient groups have approved the patient-centered medical homes (PCMHs) as an original formation for changing health care delivery.... The fundamental belief of the PCMH is the concern over a… The principle supports the idea behind the conception of HMOs, ran care organisations, which were earlier adopted by doctors, Running head: health care Economics health care Economics s health care Economics Major medical associations of different branches of learning, payers and certain patient groups have approved the patient-centered medical homes (PCMHs) as an original formation for changing health care delivery....
1 Pages (250 words) Essay

Governments Intervention In Markets For Food

The purpose of the essay "Governments Intervention In Markets For Food" is to outline the reasons why governments do and should continue to intervene more directly in markets for health compared to markets for food, particularly when the governmental budget is tight.... A useful way of looking at the ability of people to contribute to the economy is to use the Disability Adjusted Life Year (DALY), which gives a measure of the total number of years lost to ill-health or early death (Briggs et al, 2011)....
3 Pages (750 words) Essay

Current Health Care Economic issue - Prescription drugs

The good news is that there is increased life expectancy for patients suffering from terminal illnesses like cancer, leukemia, Acquired Immunodeficiency Syndrome (AIDS), liver… These drugs often sold over the counter (OTC) as prescription drugs have gone a long way in ensuring better health care among American citizens (Mark, 2006). This however comes at a grave cost to the Current health economic crises in the United s Current health economic crises in the United s Medical innovation in the United States has generated some good and bad news in the health sector....
2 Pages (500 words) Essay

Prominent economist

Kenneth Arrow and the changing Economics of Health Care.... In essence, his research in health care economics revealed startling results, with close relation to insurance, its market value, and marginal share costs (Pauly, 2001).... Journal of health Politics, Policy and Law, 26, 829–834.... With the summed up achievements, it is no doubt that Kenneth remains an icon and a hero in the economics fraternity....
1 Pages (250 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us