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Health Economics of Medicine

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Other costs also include research and development, wich at present is the most critical item being propagated by governments. Mreover, te government needs to incur indirect costs such as building of infrastructures to ensure that transportation and communication improves healthcare delivery. Frthermore, te marginal cost of health care needs to be evaluated. Ulike the total cost, wich is simply an aggregate, mrginal cost accounts the movement in the cost. I is more important to monitor the effect of population increase in total healthcare than measuring the total cost Economics can be approached scientifically using tools and mechanisms.

Aalytic evaluation of cost management in Health Economics serves as the primary point of these discussions. Frst, te cost-minimisation analysis (CMA) economic compares a particular health care product or service. Te goal of the method is to find the least costly option among a pool of choices (Donaldson and Shackley, 1997). I has to be noted that the alternative chosen needs to demonstrate an effect that is substantially similar to the other choices provided. Tere are several conditions in this have to be verified before arriving as conclusive findings.

Te initial comparison will use price as the gauge. Ideed, i is easy to identify which among the alternatives is the most economic. Aother important consideration in this analysis is the negative effects provided by a medicines being compared. I is important to emphasize on the level of toxicity and the option being considered needs to be as low-risk as the other medicines. Lstly, te effectiveness of the medicine being prioritised has to within the level of the other it being compared with.

Cst-benefit analysis (CBA) necessitates programme results to be valued monetarily (Nas, 1996). Tis allows analysts the incremental cost including the incremental units as health programmes are being implemented. CBA compares the discounted future inflow of aggregate programme benefits with incremental programme losses. Bsically, te goal of the analysis is to determine the excess of benefits when equated with the losses. Psitive net return means that benefits exceeded the cost and the programme is described as worthwhile. CA has always been a primary tool used governments in projects. ..

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preview essay on Health Economics of Medicine
  • Pages: 8 (2000 words)
  • Document Type: Essay
  • Subject: Unsorted
  • Level: Undergraduate
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