health economics slide

7/29/2019 Health Economics Slide

http://slidepdf.com/reader/full/health-economics-slide 1/13

Group three members

• OTEKAT SONI JACKLINE

• MAYOM MABOUNG MAREK

• RUSOKE EDWARD

• AKULLO BEATRICE

• NAKATO ALICE

• NAKIBUUKA MARGRET

• OBITRE E. HAROLD



Group 3 Question

The health care market is different from

other markets and has features whichdemand economic interventions.

Discuss these features

The role of equity and need

Restriction on competition



Definitions

Health

This is the physical, mental and social well being of an individual

and not merely absence of disease and infirmity(WHO)

Health care

Is the prevention, treatment and management of illness and

preservation of mental and physical well-being through the

services of mental and allied health professionals



Distinctive features in health

Health has distinctive features

• Uncertainty

• Information problems

• Insurance

• Restriction on competition

• The role of Equity and need

• Government subsidies and public provision



Restriction on competition

• Restriction

An official limit on something

• Competition

The effort of two or more parties acting independently

to secure something from a third party by offering the

most favorable terms or

Competition is a process of rivalry between suppliers

seeking to win.

• Restriction on competition

This is an official limit on more parties acting

independently to secure something from a third party by

offering the most favorable terms



Importance of competition

• Drives firms to improve their internal efficiency and

reduce costs

• Provides incentives to firms to adopt new technology

• Provides incentives to firms to invest in Innovation

• Reduces managerial inefficiency



Restriction on competition in health

• Licensure restriction

• Restriction on Advertisement

• Standard of Ethical conduct

• Regulations

• Patent protection in the pharmaceutical industry



Role of equity and need in the health

care market

• Equity

The distribution of services and resources where they are

needed most

• Need

The strong desire to acquire something e.g. health care needs,

food, water, shelter and clothing.

Equity goes hand in hand with need



Forms of Equity in health

• Equity in health

Minimizing avoidable inequalities in health and it is

determinants e.g. income, occupation, biological factors

• Equity in service delivery

Horizontal equity- equal treatment for equal needs

Vertical equity - individuals with unequal needs should

be treated unequally

• Equity in health financing

Incorporating equity dimension into economic evaluation are

required as a matter of priority e.g. cost effectiveness of

interventions in different groups



Objectives of equity in the health

care system• Monitoring trends in health and access to essential health

care interventions

• Allocation of scarce public resources to those who have more

need

• To bridge a gap between the rich and the marginalized poor

• To increase access and utilization to health services



Measure of equity in health and

health care

There are 3 important steps

• Classifying people by socio economic status e.g. house hold

income and expenditure

• Measuring health status/ health care by setting targets and

indicators e.g. life expectancy, infant and maternal mortality

• Quantifying the degree of inequity e.g. resource allocation and

services



Challenges in equity

• Corruption which leads to unfair distribution of services

• Inadequate resources

• Communication barriers

• Inadequate information and data

•

Political interference

• Unfair policies

• Lack of community involvement/ participations



References

• www. biomedcentral:com/1471-2458/7178

• www.ftc.gov/.../healthcare.htm

health economics slide

Documents