Introduction to health economics

292 Pages·2011·2.19 MB·English

by  Guinness, Lorna, Wiseman, Virginia, Wonderling, David

Introduction to Health Economics Understanding Public Health D
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“This book would be an excellent choice for anyone wishing to be t y [ F
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introduced to the field of health economics – it is undoubtedly o Introduction to culty
the best ‘Health Economics 101’ textbook around.” d o
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Professor Di McIntyre, SoutEhc Aonfroicmainc sR Uesneita,r Uchn iCvehrasiirt yo fo Hf eCaalpthe aTnodw nW, eSaoluthth, H Aefarilctha ctio Health Economics rsing, Chia
“There are several books on the market now that claim to take n
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readers into the intricacies of health economics ‘from first t ai U
principles’. To me, this book succeeds better than any.” o niv
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Gavin Mooney, Honorary Professor, University of Sydney and University of Cape H rsity
Second Edition 5
Town; Visiting Professor, Aarhus University, the University of New South Wales and e .6
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the University of Southern Denmark a .15
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Written in a user-friendly manner, this practical book covers key economic E t [07
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principles, such as supply and demand, healthcare markets, healthcare finance and c 8/1
economic evaluation. on 6]. Co
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The book has been thoroughly updated with new material reflecting important o yrig
recent developments and policy shifts such as the rise of performance based m ht ©
funding in health care, the impact and cost of achieving universal health care and M
the growing effect of globalization and international trade on the health sector. ics cGraw
This engaging new edition features: -H
(cid:2) Extensive use of global examples from low, middle and high income ill G
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countries, real case studies and exercises to facilitate the a
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understanding of economic concepts du
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(cid:2) A greater emphasis on the practical application of economic tio
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theories and concepts to the formulation of health policy H
(cid:2) New chapters on macroeconomics, globalization and health and Ed oldin
provider payments ite gs, L
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(cid:2) Extensively revised chapters on demand and supply, markets and by C. N
economic evaluation G ot to
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Introduction to Health Economics 2nd editionis the ideal companion text for in red
students, public health practitioners, policy makers, managers and researchers ne istrib
looking for a greater understanding of health economics principles. ss uted
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Lorna Guinnessis a lecturer at the London School of Hygiene & W r mod
aAnuds tTrarolipanic aNla Mtieodniacli nUen, iUveKr saintyd, AVuissittirnaglia R. e search Fellow at the ise ified in a
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Virginia Wisemanis a senior lecturer at the London y
School of Hygiene and Tropical Medicine, UK. an way w
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Edited by rm
Cover design Hybert Design (cid:129)www.hybertdesign.com issio
www.openup.co.uk Lorna Guinness & Virginia Wiseman n.
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Introduction to Health Economics u
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Understanding Public Health Series [ Fa
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Series editors: Ros Plowman and Nicki Thorogood, London School of Hygiene & Tropical Medicine. f N
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Throughout the world, there is growing recognition of the importance of public health to sustainable, safe rsing
and healthy societies. The achievements of public health in nineteenth-century Europe were for much of the , C
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twentieth century overshadowed by advances in personal care, in particular in hospital care. Now, in the twenty- ia
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fi rst century, there is increasing understanding of the inevitable limits of individual health care and of the need gm
to complement such services with effective public health strategies. Major improvements in people’s health will ai U
come from controlling communicable diseases, eradicating environmental hazards, improving people’s diets and n
enhancing the availability and quality of effective health care. To achieve this, every country needs a cadre of ive
knowledgeable public health practitioners with social, political and organizational skills to lead and bring about rsity
changes at international, national and local levels. 5
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This is one of a series of books that provides a foundation for those wishing to join in and contribute to the .1
5
regeneration of public health, helping to put the concerns and perspectives of public health at the heart of policy- 8.1
making and service provision. While each book stands alone, together they provide a comprehensive account of 17
the three main aims of public health: protecting the public from environmental hazards, improving the health of ] a
the public and ensuring high quality health services are available to all. Some of the books focus on methods, oth- t [0
7
ers on key topics. They have been written by staff at the London School of Hygiene & Tropical Medicine with /1
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considerable experience of teaching public health to students from low, middle and high income countries. Much /1
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of the material has been developed and tested with postgraduate students both in face-to-face teaching and ]. C
through distance learning. o
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The books are designed for self-directed learning. Each chapter has explicit learning objectives, key terms are rig
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highlighted and the text contains many activities to enable the reader to test their own understanding of the ideas t ©
and material covered. Written in a clear and accessible style, the series is essential reading for students taking M
postgraduate courses in public health and will also be of interest to public health practitioners and policy-makers. cG
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Titles in the series ill G
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Analytical models for decision making: Colin Sanderson and Reinhold Gruen al E
Controlling communicable disease: Norman Noah d
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Economic analysis for management and policy: Stephen Jan, Lilani Kumaranayake, Jenny Roberts, Kara Hanson and ca
Kate Archibald tio
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Economic evaluation: Julia Fox-Rushby and John Cairns (eds) H
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Environmental epidemiology: Paul Wilkinson (ed) ld
Environmental health policy: Megan Landon and Tony Fletcher ing
Financial management in health services: Reinhold Gruen and Anne Howarth s, L
Global change and health: Kelley Lee and Jeff Collin (eds) LC
Health care evaluation: Sarah Smith, Don Sinclair, Rosalind Raine and Barnaby Reeves . N
HHeeaalltthh pprroommoottiioonn pthreaocrtiyc: eM: Magaggigei eD Davaiveise sa, nWd eWndeyn dMy aMcdaocdwoawll aalnl d(e Cdsh)ris Bonell (eds) ot to b
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Introduction to epidemiology, second edition: Ilona Carneiro and Natasha Howard re
IInssturoedsu icnt ipounb tloic hheeaalltthh ,e sceocnoonmdic es,d siteicoonn: dFi oednait iSoinm: Laonrdn Ma Garutiinn nMescsK aened ( Vedirsg)inia Wiseman (eds) distrib
Managing health services: Nick Goodwin, Reinhold Gruen and Valerie Iles ute
Medical anthropology: Robert Pool and Wenzel Geissler d o
Principles of social research: Judith Green and John Browne (eds) r m
Public health in history: Virginia Berridge, Martin Gorsky and Alex Mold od
Understanding health services: Nick Black and Reinhold Gruen ifie
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Forthcoming titles: y w
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Sexual health: a public health perspective: Kaye Wellings, Martine Collumbien, Wendy Macdowall and Kirstin Mitchell ith
Confl ict and health: Natasha Howard, Egbert Sondorp and Annemarie ter Veen (eds) ou
Making health policy, second edition: Kent Buse, Nicholas Mays and Gill Walt t p
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Environment, health and sustainable development, second edition: Emma Hutchinson and Megan Landon (eds) rm
issio
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Dedications [ Fa
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For John, Thomas and Theo ai U
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I would like to dedicate this book to my parents, Kaye and Don, for their enduring support. I also dedicate it to rsity
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my children, Franklin, Myrtle and Rose who have always reminded me of the importance of play as well as work. .6
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Finally, to my husband, Steve, who has the patience of a saint. .15
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Health Economics ian
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Virginia Wiseman o
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Open University Press cu
McGraw-Hill Education lty
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McGraw-Hill House f N
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email: [email protected] niv
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world wide web: www.openup.co.uk rsity
and Two Penn Plaza, New York, NY 10121-2289, USA 5.6
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First published 2005 7] a
Reprinted 2006, 2007, 2008, 2009, 2010 t [0
Second edition 2011 7/1
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Copyright © London School of Hygiene & Tropical Medicine 2011 6
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ISBN-13: 978-0-33-524356-3 l Ed
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ISBN-10: 0-33-524356-8 ca
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Fictitious names of companies, products, people, characters and/or data that may be used t to b
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herein (in case studies or in examples) are not intended to represent any real individual, re
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company, product or event. istrib
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Contents by
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The editors ix ai U
Acknowledgements x niv
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Introduction 1 rsity
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Section 1: Economics and health economics 5 .6
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1 Key concepts in health economics 7 8
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Virginia Wiseman 17
2 Macroeconomics, globalization and health 21 ] at [0
Richard Smith 7
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Section 2: Demand and supply 35 6]. C
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3 A simple model of demand 37 p
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Virginia Wiseman and Stephen Jan rig
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4 Measuring demand 55 t ©
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Virginia Wiseman c
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5 Supply: production in the long and short run 69 ra
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Lorna Guinness (ed.) -H
6 Supply: costs, economies of scale and the supply curve 83 ill G
Lorna Guinness lob
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Section 3: Markets 99 du
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7 A simple market model 101 tion
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Virginia Wiseman and Lorna Guinness o
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8 Health care markets and effi ciency 117 in
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Lorna Guinness and Virginia Wiseman s, L
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Section 4: Health care fi nancing 133 . N
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9 The changing world of health care fi nance 135 t to
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Lorna Guinness and Reinhold Gruen e re
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1 0 PMryolevnidee Lra pgaayrmdeents 148 istrib
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11 Private health insurance 160 ted
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Sachiko Ozawa r m
12 Achieving universal coverage 173 od
Josephine Borghi ifie
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Section 5: Economic evaluation 185 an
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13 What is economic evaluation and what questions can it help to answer? 187 ay
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Virginia Wiseman and Stephen Jan ith
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14 Counting the costs 201 u
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Lorna Guinness erm
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15 Identifying, measuring and valuing consequences 217 [ F
Shunmay Yeung, Kristian Hansen and Lorna Guinness ac
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16 Economic evaluation and decision-making 234 lty
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Damian Walker f N
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Section 6: Equity 249 rsing
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17 Promoting equity and the role of government 251 ia
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Stephen Jan and Virginia Wiseman gm
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Glossary 264 niv
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Index 271 rsity
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