health economics in community health nursing

1. Mrs. Athira B Prasad
Lecturer
St. Joseph’s College of Nursing, Anchal

2. Health
 “ A state of complete physical, mental &
social well being & not merely an absence of
disease or infirmity”.
---- WHO

3. Economics
 It deals with the human relationship in the
specific context of production, distribution,
consumption, ownership of resources, goods
& services.

4. Health Economics
 It is the study of distribution of health care.
 It is the allocation of resources within the
health system in the economy, as well as
functioning of health care market.

5. Demand
 It refers to how much (quantity) of a product
or service is desired by buyers.
 It is the amount of a good that consumers
are willing & able to buy at a given price.

6. Supply
 The amount of goods producer are willing &
able to sell at a given price.
 Supply represents how much the market can
offer.

7.  To formulate health services
 To establish the true costs of delivering
health care or to estimate all real costs.
 To evaluate the relative costs & benefits of
particular policy options
 Health, organization & economic
development

8.  To identify determinants of growth &
economic development, elements of health
expenditure by use of macro economics
 To determine the economic characteristics of
health care & health related activities

9. The law of supply
 At higher prices, producers are willing to
offer more products for sale than at lower
prices.
 The supply increase as prices increase &
decreases as prices decrease.
 Those already in business will try to increase
production as a way of increasing profits.

10. Law of demand
 People will buy more of products at a lower
price than at a higher prices, if nothing
changes.
 At a lower price more people can afford to
but move goods & more of an item more
frequently than that can at a higher price.

11.  At lower prices, people tend to buy some
goods as a substitute for more expensive
goods.

12. Supply & demands can change up & down
because of
 Competition for a good/ service
 An increase in the costs of materials used to
make a product
 Technological advances

13.  A change in consumer preferences
 Shortage of goods/services.

14.  Cost – benefit analysis (CBA)
 Cost effectiveness analysis (CEA)
 Cost utility analysis (CUA)

15.  It is a systematic approach to estimating the
strengths & weaknesses of alternatives.
 It is also defined as a systematic process for
calculating & comparing benefits & costs of a
decision, policy or project.

16.  To determine if an investment /decision is
sound- verifying whether its benefits outweigh
the costs, & by how much
 To provide a basis for comparing projects- which
involves comparing the total expected cost of
each option against its total expected benefits.

17.  It expresses the net direct & indirect costs &
cost saving in terms of a defined health
outcome.
 The total net costs are calculated & divided
by the number of health outcomes.

18.  CUA is a form of financial analysis used to
guide procurement decisions.
Purpose
 To estimate the ratio between the cost of a
health related intervention & the benefit it
produces in terms of the number of years
lived in full health condition by the
beneficiaries.

19.  Greater demand for services
 New Technology
 Prescription Drugs
 Cost shift due to under funded public
programs

20.  Government regulation & mandates
 Medical malpractice liability
 Increased chronic illnesses.

21.  Changes in the age structure
 Changes in consumer attitudes
 Increase in the real income
 Advances in medical technology

22.  Number of sellers
 Resource prices

23.  It is the business practice of maintaining
expense levels to prevent unnecessary
spending.

24.  The process of controlling the expenses
required to operate an organization or
perform a project within preplanned
budgetary constraints.

25.  Family budgets estimate family based specific
costs on different heads.
Components of family budget
 Pay their living expenses
 Keep debts to a manageable level
 Savings that make life enjoyable

26.  Avoid constant money anxiety
 Meet the health care needs for the
preventive & promotive health care & also
future illness.

27.  It is an amount of money to support a
family’s identified healthcare & wellbeing
needs, which is planned & agreed between
the family & their representative