Health Economics
DEMAND
Medical Expenditures. Do increased expenditures = increased health? - Distinguish diff b/n medical services and health - Medical Services: Treatment of disease and Preventative measure, Diagnostics, Pain Management, Counseling - Health: General Well-being. - Narrowing objective - Affects how you will allocate medical resources. - To produce health, there are more factors than just medical services **Provide a medical treatment efficiently ≠ produce health efficiently
SLIDE 4 Skewed spending concentrated on the top 5% of the population (spend 50% on health care) Top 1 percent spends 20% of HC expenditures (this is the chronic disease carriers who use most of the medical care resources) Measuring Health.. Cannot cover the entire spectrum (mental and social well-being) SLIDE 5: WHAT IS HEALTH? Measures only covers certain aspects like life expectancy (but it doesn’t take into account the quality of life) The more accurate the definition of health, the more difficult health is to measure. Pg 146: Measures of life status. Human Capital Theory of Health Care: Capital can be used as input to produce other products or goods Human capital was like any other type of capital; it could be invested in through education, training and enhanced benefits that will lead to an improvement in the quality and level of production. The concept of human capital recognizes that not all labor is equal and that the quality of employees can be improved by investing in them. The education, experience and abilities of an employee have an economic value for employers and for the economy as a whole. Health is like capital as well: Like Human Capital -- Better health = enjoy better life = work more = higher productivity = more financial benefits. Education is the same. Other factors that affect the production Health: Age, sex, lifestyle, income, environment (air/water quality), culture, technology, eating habits, physical
Medical Expenditures. Do increased expenditures = increased health? - Distinguish diff b/n medical services and health - Medical Services: Treatment of disease and Preventative measure, Diagnostics, Pain Management, Counseling - Health: General Well-being. - Narrowing objective - Affects how you will allocate medical resources. - To produce health, there are more factors than just medical services **Provide a medical treatment efficiently ≠ produce health efficiently
SLIDE 4 Skewed spending concentrated on the top 5% of the population (spend 50% on health care) Top 1 percent spends 20% of HC expenditures (this is the chronic disease carriers who use most of the medical care resources) Measuring Health.. Cannot cover the entire spectrum (mental and social well-being) SLIDE 5: WHAT IS HEALTH? Measures only covers certain aspects like life expectancy (but it doesn’t take into account the quality of life) The more accurate the definition of health, the more difficult health is to measure. Pg 146: Measures of life status. Human Capital Theory of Health Care: Capital can be used as input to produce other products or goods Human capital was like any other type of capital; it could be invested in through education, training and enhanced benefits that will lead to an improvement in the quality and level of production. The concept of human capital recognizes that not all labor is equal and that the quality of employees can be improved by investing in them. The education, experience and abilities of an employee have an economic value for employers and for the economy as a whole. Health is like capital as well: Like Human Capital -- Better health = enjoy better life = work more = higher productivity = more financial benefits. Education is the same. Other factors that affect the production Health: Age, sex, lifestyle, income, environment (air/water quality), culture, technology, eating habits, physical