Economic Evaluations

Economic Evaluations

Health economics is vital in the allocation of resources required in healthcare facilities. This report focuses on economic evaluations in the healthcare sector. The report’s main sections include a description of the importance of evaluations in health economics, a comparison and contrast of the four types of economic analysis as they relate to health economics, and a discussion of how economic evaluations and health policy are related. Provide recent examples and a discussion of the role of technology in economic evaluations.

Economic Evaluations

Economic evaluation is the systematic measure, identification, and valuation of programs or policies based on their outcomes and costs. The main aim of economic evaluation is to determine whether allocating resources to a specific intervention is valuable. Economic evaluation in healthcare focuses on measuring the cost-benefit ratios and cost-effectiveness of clinical and preventive interventions such as cardiac surgery, hip replacement, and vaccination. Therefore, economic evaluation is vital in healthcare decision-making and predicting health outcomes. This report will focus on the importance of evaluations in health economics, the differences and similarities between the four types of economic analysis, the relationship between economic evaluations and health policy, and the role of technology in economic evaluations.

The Importance of Evaluations in Health Economics

Evaluations play a vital role in health economics by enabling healthcare professionals to measure, identify, compare, and value the costs and impacts of different public health interventions. Economic evidence is also used to get insight into the value of the investments related to public health and the general health system. According to Dang et al. (2016), the evidence gathered through evaluations is used to make investment decisions and public health improvements to create sustainable health gains. Economic evaluations also provide information that can be used to justify healthcare interventions’ feasibility based on sustainability and capability (Boltyenkov, 2014). Determining the benefits and costs of public health interventions through evaluations also enables healthcare professionals to determine and choose the most equitable, efficient, effective, sustainable, and accessible interventions.

The Difference between the Types of Economic Analysis

The main types of economic analysis related to health economics are cost-benefit analysis, cost-utility analysis, cost-effectiveness analysis, and cost-of-illness analysis. The cost-benefit analysis evaluates all the benefits and costs of healthcare, including health outcomes, to help healthcare facilities decide between investment in health improvement and other areas such as facility development. Cost-utility analysis includes categorizing costs and benefits as costs based on a uniform morbidity and mortality measure, such as quality-adjusted life year (Yu & Kim, 2017). Cost-effectiveness analysis compares healthcare costs with natural health outcome units, such as the number of prevented cases and the number of saved life years. Cost of illness analysis estimates a specific disease’s economic burden and total costs. The main similarity between the four types of analysis is that they all consider healthcare costs and benefits by quantifying health outcomes.

Relationship between Economic Evaluations and Health policy

Economic evaluations help healthcare professionals allocate resources effectively and implement interventions by demonstrating the relationship between health outcomes and the resources used in the intervention or program. Economic evaluations also contribute to evidence-based decision-making in public health by facilitating the identification, measuring, and comparison of activities with the necessary capability, impact, and sustainability to promote population health (Turner et al., 2021). For example, during the COVID-19 pandemic, an economic evaluation was used to set policies relating to the vaccination against COVID-19 based on the reduction in infection rate after the vaccine was introduced. Economic evaluation has also been considered in health policy about healthcare insurance based on the population of people who cannot afford proper healthcare. Therefore, economic valuations create a foundation for health policy formulation and implementation.

The Role of Technology in Economic Evaluations

Technological advancements over the past decade have impacted operations in the healthcare sector. For instance, technology is essential in ensuring that economic evaluations are right. For instance, technology is used to provide evidence-based information by facilitating the collection of information on the costs and benefits of public health and quantifying the information. Technology is also used to measure the effectiveness of a healthcare program or intervention through simulation. For example, technology can be used to create real-world scenarios where specific interventions and programs can be used, thus helping healthcare professionals select the most appropriate and effective intervention. Technology is also used to provide custom support for healthcare professionals during evaluations to ensure that their findings about the costs and benefits of a healthcare intervention are accurate. Healthcare professionals also test various technologies and conduct technology assessments to get evidence-based information to make decisions on using and selecting health technologies, promote appropriate and efficient allocation of health resources, and control costs while maximizing value for the healthcare system and patients.

Conclusion

The effectiveness of the healthcare sector relies on the proper use and allocation of resources. Healthcare professionals must also ensure that the healthcare offered to patients improves health outcomes and maximizes value. Economic evaluations are essential in determining the costs and benefits associated with a specific healthcare intervention and program. Economic evaluations are also an essential part of the decision-making process in healthcare because they offer insight into the areas where funds should be invested to improve healthcare. Evaluations in health economics guide policymakers on the policies that should be implemented to improve public health, such as policies relating to vaccination and the distribution of healthcare resources. Evaluations in health economics are also vital in determining the feasibility of a healthcare program or intervention. Therefore, it is important for healthcare professionals to regularly analyze cost-utility, cost-benefit, cost-effectiveness, and the cost of illness. Healthcare professionals should also consider using technology to improve the accuracy of the information gathered about healthcare costs and benefits and test healthcare programs and interventions before they are approved.

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References

Boltyenkov, A. (2014). Quantitative research on the Healthcare Economic Policy for Hearing Impairment. A Healthcare Economic Policy for Hearing Impairment, 69–110. https://doi.org/10.1007/978-3-658-08237-6_5

Dang, A., Likhar, N., & Alok, U. (2016). Importance of economic evaluation in health care: An Indian perspective. Value in Health Regional Issues, 9, 78-83. https://doi.org/10.1016/j.vhri.2015.11.005

Turner, H. C., Archer, R. A., Downey, L. E., Isaranuwatchai, W., Chalkidou, K., Jit, M., & Teerawattananon, Y. (2021). An introduction to the main types of economic evaluations used for informing priority setting and resource allocation in healthcare: Key features, uses, and limitations. Frontiers in Public Health, 9. https://doi.org/10.3389/fpubh.2021.722927

Yu, J., & Kim, J. (2017). Cost-effectiveness analysis, cost-utility analysis, and cost-benefit analysis. Understanding Health Outcomes and Pharmacoeconomics. https://doi.org/10.21019/9781582122823.ch13

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The purpose of this assignment is to describe the importance of evaluations in health economics.
Write a 750-1,000 word paper that includes the following:
1. Describe the importance of evaluations in health economics.
2. Compare and contrast the four types of economic analysis as they relate to health economics.
3. Discuss how economic evaluations and health policy are related. Provide recent examples.
4. Discuss the role of technology in economic evaluations.
Include an introduction and conclusion in your paper, and incorporate at least three peer-reviewed scholarly resources.