By Craig Mitton

This paintings presents a advisor to how economics can be utilized to control shortage of assets in future health prone. It outlines the foundations of economics in a non-technical demeanour, earlier than occurring to handle the problems of ways to use the foundations in daily well-being providers administration.

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Additional info for Priority Setting Toolkit: Guide to the Use of Economics in Healthcare Decision Making

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5 Costs (and cost savings) from service developments and areas of resource release Programme (a) Service developments (b) Areas of resource release Cost (savings) a1 a2 a3 a4 $4 m $2 m $3 m $3 m a5 $2 m a6 $1 m a7 a8 a9 a10 $1 m $4 m $0·5 m $3 m b1 b2 ($0·5 m) ($1·5 m) b3 ($1 m) b4 b5 ($4 m) ($2 m) up to here, developments are paid for from “new money” up to here, $2 m is taken out of b1 and b2 and put into a5 up to here, $1 m is taken out of b3 and put into a6 Assume that the first two of these result in no loss of benefits to patients as they are the result of technical efficiency improvements.

In addition, opportunity cost is also incorporated, albeit in a constrained manner, through making explicit comparison of benefits gained and lost for the additional resources available. What the league table does not do, nor is it intended to do, is to consider how existing resources should be shifted or reallocated within the existing budget. The focus is simply on how best to spend additional resources, and within this context league tables may be a useful tool. QALY league tables also have a number of potential limitations.

Resource allocation. Can Med Assoc J 1997;157:163–7. Maynard A, Bloor K. Our Certain Fate: Rationing in Health Care. London: Office of Health Economics, 1998. Donaldson C, Farrar S. Needs assessment: developing an economic approach. Health Policy 1993;25:95–108. Feighan T. Setting health care priorities in Northern Ireland. Paper presented at the Health Economists’ Study Group, University of Galway, 1998. Bryan S, Roberts T, Heginbotham C, McCallum A. Public involvement in health care priority setting: an economic perspective.

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