Assignment 1 Health Care Economic Analysis

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Assignment 1: Health Care Economics HSA510 Feb 26, 2014 1.Assess the value of healthcare professionals and decision makers understanding the discipline of health economics. The results of an economic evaluation of a health intervention may also vary depending on the choice of comparator. With regard to the outcome measures, efficacy usually differs from effectiveness. Factors such as adherence rate, dose adjustment, length of treatment, use of concomitant medication etc. may explain the difference (Moore 2010). Clinicians play a very active role in improving patients' adherence to treatment, contributing to closing the gap between efficacy and effectiveness and consequently improving patients' outcomes and the cost-effectiveness…show more content…
Although the growing importance of these social value judgments may be acknowledged, we must not neglect individual patient values (Moore 2010). However, in daily practice, it is doctors who may incorporate these factors in their clinical decisions. Doctors make therapeutic decisions based on the available information for average patients, but they are aware that, sometimes, individual patient values may modify these decisions (Moore 2010). Patients may refuse a cancer treatment that is backed by clinical trial evidence and has positive cost-effectiveness, simply because they are reluctant to suffer the side effects of the therapy, or they may prefer avoiding an inconvenient preventive intervention because they are willing to take the bigger risk of getting the disease, or suffering the complication that the intervention sought to prevent (Moore 2010). Just as the scientific value judgments of organizations should be individualized for each patient by the doctor, social value judgments should be put within the perspective of individual value judgments (Moore 2010). Some ethical challenges may arise from the clinical implementation of these reflections, in relation to the principle of distributive justice. The practice of patient-centered care compatible with a fair and equal allocation of health care resources (Moore…show more content…
Simple economic principles quickly prove how many of these claims are false and makes a clear case for free markets rather than government intervention (Sagna 2012). At first glance, it may seem logical that in the case of insurance, a government plan would be far less expensive, since profits would be essentially nonexistent (Sagna 2012). Absent the necessity for profits, the government could simply use these funds to provide additional insurance at discounted rates (Sagna 2012). When scrutinized, it becomes apparent that the proposed government plan would actually lead to higher costs, overcrowding and longer waiting lines, and limited or rationed care (Sagna 2012). The government has said that the insurance would provide nearly all forms of care, to include preventative care and medications (Sagna 2012). In exchange, consumers would be required to pay a flat fee, based on their annual income, and a co-pay which would be restricted by a maximum out-of-pocket limit (Sagna 2012). According to the government estimates, the insurance program would be deficit neutral,” once fully initiated, and would essentially be funded by consumer premiums and tax penalties the government would collect from uninsured Americans and
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