Mr. Denny John, Senior Technical Specialist at ICRW began the lecture by posing a basic question to students and interacted with students on what is cost effectiveness and what value you would get in 5-10 years by investing today.
Economic valuations of health care systems can be classified into two categories. First, hospitals which make rational cost decisions like in the UK and New Zealand have big chain hospitals and hospitals which focus more on health services such as dengue treatment by screening a large number of patients and determining the impact of vaccination in that population. Statistics and economics are utilized to make rational decisions in the health care industry.
“Health economics is the evaluation of cost and consequences of health care interventions such as drugs, devices, services and programs”
Mr. Denny John briefed the students on methods of economic evaluation which are as follows:
- Cost of Illness (COI)
- Cost-minimization analysis (CMA)
- Cost-effectiveness analysis (CEA)
- Cost-utility analysis (CUA)
- Cost-benefit analysis (CBA)
He elaborated on the importance of modeling, simulations and cost of screening to determine what the benefit of a program would be in the long term and the implications of not screening a population. He concluded by highlighting the trends in data analytics in the healthcare industry.