HEALTH CARE MODELS
HEALTH CARE MODELS
HEALTH CARE MODELS
Health Economics is an applied field of study that examines and finds systems-based
solutions to make health care more equitable, accessible, and affordable for all. Health
economists seek to understand the role that stakeholders (such as healthcare providers,
patients, private insurance companies, government agencies, corporations, and public
organisations) play in healthcare spending.
Health Economics” can be defined as the application of Economic theories, tools and
concepts of economics as a discipline to the topics of health and health care. Since health
economics is concerned with issues related to the allocation of scarce resources to improve
health, this includes both resource allocation within the economy to the health sector and
within the health care system to different activities and individuals.
Health Economics uses economic concepts and methods to understand and explain how
people make decisions regarding their health behaviours and use of health care. It also
provides a framework for thinking about how society should allocate its limited health
resources to meet people’s demand/need for health care services, health promotion and
prevention.
Health Economics can deliver insights that inform solutions to some of the world’s most
pressing health care and well-being issues.
How do we put a value on health?
What factors influence health besides health care?
What influences the supply and demand of health care?
What are the behaviours of healthcare providers versus those seeking care
What are some alternative approaches to healthcare production and delivery?
How can we improve our plan, budget, and monitor healthcare?
Health Care Economics is a term used to describe the various factors that converge to
influence the health care industry’s costs and spending. As a field of study, health care
economics seeks to understand the role that individuals, health care providers, insurers,
government agencies, and public and private organizations play in driving these costs.
Health Economists are curious about what affects health outcomes. In their research, they’ll
ask questions like:
Health economics is important because it focuses on how the economic behaviour of
stakeholders and recipients affects the quality and cost of medical care. It includes how
people pay for care, how they are processed, and how health systems worldwide can be
restructured and improved. Tackling any systemic issue at the root cause can prevent the
same problems from arising again.In examining the questions above, health economists
address global issues such as migration and displacement, climate change, pandemics and
vaccine access, disorders, obesity, and more. They apply economic theories to inform the
public and private sectors on cost-effective solutions to improve equity in health care.
For example, a health economist might research disparities in the quality of health and
income in West Africa by evaluating the price of health care and insurance in the region.
Potential solutions include employing digital technologies to provide health care through
mobile phones or laptops.
Similar to public health and population health, approaching society’s health and well-being
from a bird’s-eye macro perspective and drilling down to research specific populations can
have a positive impact.
Uncertainty and the Welfare Economics of Medical Care’’ (Arrow 1963) is a landmark
contribution to health economics that is required reading in health economics, health policy,
and health law courses.
LEVELS OF HEALTH CARE
Primary health care is essential health care based on practical, scientifically sound, and
socially acceptable methods and technology made universally accessible to individuals and
families in the community through their full participation and at a cost that the community
and country can afford to maintain at every stage of their development in the spirit of self-
reliance and self-determination. It forms an integral part both of the country's health system,
of which it is the central function and main focus, and of the overall social and economic
development of the community. It is the first level of contact of individuals, the family, and
community with the national health system bringing health care as close as possible to where
people live and work, and constitutes the first elements of a continuing health care process.
An acceptable level of health for all the people of the world by the year 2000 can be attained
through a fuller and better use of the world's resources, a considerable part of which is now
spent on armaments and military conflicts. A genuine policy of independence, peace, détente,
and disarmament could and should release additional resources that could well be devoted to
peaceful aims and in particular to the acceleration of social and economic development of
which primary health care, as an essential part, should be allotted its proper share.
Primary care is the first level of healthcare and the one most people are familiar with.
Providers at this level include primary care physicians, nurse practitioners,
pediatricians and doctors. Primary care providers are often the first medical
professionals a patient will see when they are sick, injured or experiencing symptoms
that may require further testing. Primary care providers also help prevent people from
getting sick by offering wellness visits and general checkups.
Secondary Care-When a patient has health or medical needs that extend beyond the
scope of a primary care provider, they will typically be referred to a secondary
care provider. These are specialists (such as cardiologists, oncologists and
dermatologists) who can provide additional expertise and more tailored services.
Tertiary Care-The next level of healthcare is known as tertiary care, which usually
occurs when a patient is hospitalized or requires a more specialized level of care than
a primary or secondary professional can provide. Working in tertiary care requires a
great deal of expertise and the use of highly specialized equipment that can often only
be found in a hospital.
Quaternary Care is mostly an extension of tertiary care that is provided in situations
where a patient’s health needs require an even higher degree of specialization.
Because of the highly specialized nature of quaternary care, this level of care is not
offered at every hospital.
Example of Health Economics In The Real World
Healthcare economics can be used to solve real-world problems and model the outcomes of
potential solutions. Take the concept of resource allocation. In times of high demand, such as
COVID-19, the resources of the public health sector in India become stretched thinly, and
funding often cannot cover the total expenses needed to keep up with patient needs. In such
cases, health economists will look at data, evaluate ongoing needs, and develop solutions that
can be used to help the Indian government allocate healthcare resources and funding.
HEALTH AND ECONOMIC DEVELOPMENT
The role of health in economic development is analyzed via two channels: the direct effect
labor productivity and the indirect incentive effect. The labor productivity hypothesis asserts
that individuals who are healthier have higher returns to labor input
It may be defined in terms of various health indicators such as life expectancy, infant
mortality, crude death rate, etc. Itis one of the fundamental rights of every citizen.
ROLE OF HEALTH IN ECONOMIC DEVELOPMENT
Health is both causes and effects of economic development. Investment in health is
recognised as an important means of economic development. As the Commission on
Macroeconomics and Health of the World Health Organization (WHO) has shown,
substantially improved health outcomes are a prerequisite if developing countries are to break
out of the circle of poverty. Good health contributes to development through a number of
pathways:
1) Higher worker productivity: Healthier labour are more productive, earn higher wages, and
neglect fewer days of work than those who are ill. This increases output, increases turnover in
the workforce, and increases enterprise profitability and agricultural production.
2) Higher rates of domestic and foreign investment: Increased labour productivity creates
incentives for investment. Besides, controlling endemic and epidemic diseases, such as
HIV/AIDS, is likely to encourage foreign investment, both by increasing growth
opportunities for them and by reducing health risks for their personnel.
3) Improved human capital: Healthy children have better cognitive potential. As health
improves, rates of absenteeism and early school drop-outs fall, and children learn better,
leading to growth in the human capital base.
4) Higher rates of national savings: Healthy people have more resources to assign to savings.
These savings in turn provide funds for capital investment.
5) Demographic changes: Improvements in both health and education contribute to lower
rates of fertility and mortality. After a delay, fertility falls faster than mortality, slowing
population growth and reducing the “dependency ratio” (the ratio of active workers to
dependents). This “demographic dividend” has been shown to be an important source of
growth in per capita income for low-income countries.
6) Improved Utilization of Natural Resources: Health investment contributes to better
deployment of economic resources of a nation. Many developing economies waste huge sum
of money on treatment of various diseases rather than their prevention. This leads of wastage
of resources. Eradication of diseases also enhances labour productivity. The investment made
in treating disease can be diverted to other productive uses.
7) Multiplier Effect of Health Expenditure Extending to Next Generation: Good health at the
initial stage of life, i.e. among children from 1-6 years of age is a pre-requisite for future
development of these children. A child who is physically and mentally fit at the age of 5 or6
years is more likely to enroll for school and will develop a strong foundation through active
learning and regularity in class. Again it is a well-established fact that a healthy and educated
individual certainly generates more income than an uneducated individual, thereby making
contribution to the national income of the nation.
8) Long run Reduction in Cost of Medical Care: Spending in healthcare for short run prevents
and reduces the incidences of diseases in long run and results in giant savings in treatment
costs. The expenditure pays for some diseases even when all the indirect benefits such as
higher labour productivity, reduced pain and suffering are ignored for example Polio. In
America prior to the eradication of polio showed that investing $220 million over 15 years to
eliminate the disease would prevent 22,000 cases and save between $320 million to $1.3
billion in annual treatment cost
Health performance and economic performance are interlinked. Wealthier countries have
healthier populations for a start. And it is a basic truth that poverty, mainly through infant
malnourishment and mortality, adversely affects life expectancy. National income has a
direct effect on the development of health systems, through insurance coverage and public
spending
DETERMINANTS OF HEALTH
social and economic environment,
the physical environment, and
the person’s individual characteristics and behaviours.
The context of people’s lives determine their health, and so blaming individuals for having
poor health or crediting them for good health is inappropriate. Individuals are unlikely to be
able to directly control many of the determinants of health. These determinants—or things
that make people healthy or not—include the above factors, and many others:
Income and social status - higher income and social status are linked to better health. The
greater the gap between the richest and poorest people, the greater the differences in health.
Education – low education levels are linked with poor health, more stress and lower self-
confidence.
Physical environment – safe water and clean air, healthy workplaces, safe houses,
communities and roads all contribute to good health. Employment and working conditions –
people in employment are healthier, particularly those who have more control over their
working conditions
Social support networks – greater support from families, friends and communities is linked to
better health. Culture - customs and traditions, and the beliefs of the family and community
all affect health.
Genetics - inheritance plays a part in determining lifespan, healthiness and the likelihood of
developing certain illnesses. Personal behaviour and coping skills – balanced eating, keeping
active, smoking, drinking, and how we deal with life’s stresses and challenges all affect
health.
Health services - access and use of services that prevent and treat disease influences health
Gender - Men and women suffer from different types of diseases at different ages.
Alma-Ata Declaration of 1978 emerged as a major milestone of the twentieth century in the
field of public health, and it identified primary health care as the key to the attainment of the
goal of Health for All. Declaration of Alma-Ata was adopted at the International Conference
on Primary Health Care (PHC), Almaty (formerly Alma-Ata), Kazakh Soviet Socialist
Republic (present day Kazakhstan),
It expressed the need for urgent action by all governments, all health and development
workers, and the world community to protect and promote the health of all people. It was the
first international declaration underlining the importance of primary health care. The primary
health care approach has since then been accepted by member countries of the World Health
Organization (WHO) as the key to achieving the goal of "Health For All", but only in
developing countries at first. This applied to all other countries five years later. The Alma-
Ata Declaration of 1978 emerged as a major milestone of the twentieth century in the field of
public health, and it identified primary health care as the key to the attainment of the goal of
"Health For All" around the globe.
The conference called for urgent and effective national and international action to develop
and implement primary health care throughout the world and particularly in developing
countries in a spirit of technical cooperation and in keeping with a New International
Economic Order. The sentiment of the declaration was partly inspired by the barefoot doctor
system in China, which revolutionized the state of primary care in China's rural areas.
The declaration urged governments, the WHO, UNICEF, and other international
organizations, as well as multilateral and bilateral agencies, non-governmental organizations,
funding agencies, all health workers and the world community to support national and
international commitment to primary health care and to channel increased technical and
financial support to it, particularly in developing countries. The conference called on the
aforementioned to collaborate in introducing, developing and maintaining primary health care
in accordance with the spirit and content of the declaration. The declaration has 10 points and
is non-binding on member states.
The Declaration of Alma-Ata is a 1978 document that established a holistic view of health
and the importance of primary health care:
Health is a fundamental human right
The declaration states that health is a state of complete physical, mental, and social well-
being, not just the absence of disease.
Primary health care is essential
The declaration identifies primary health care as the key to achieving "Health for All". It
emphasizes that primary health care should be accessible to everyone, and that it should be
based on practical, scientifically sound, and socially acceptable methods and technology.
Community participation
The declaration promotes community participation in the planning, organization, operation,
and control of primary health care. It also emphasizes that communities should be able to
participate through appropriate education.
Health workers
The declaration emphasizes the role of health workers, including physicians, nurses,
midwives, auxiliaries, and community workers. It also recognizes the role of traditional
practitioners.
International cooperation
The declaration calls for all countries to cooperate to ensure primary health care for all
people.
Alma-Ata Conference on Primary Health Care
The Declaration of Alma-Ata was a major milestone in public health in the 20th century. It
was the first document to set out a holistic view of health and to emphasize the contribution
of health to economic and individual development.
The following are excerpts from the Declaration
The Conference strongly reaffirms that health, which is a state of complete physical, mental,
and social well-being, and not merely the absence of disease or infirmity, is a fundamental
human right and that the attainment of the highest possible level of health is a most important
world-wide social goal whose realization requires the action of many other social and
economic sectors in addition to the health sector.
The existing gross inequality in the health status of the people, particularly between
developed and developing countries as well as within countries, is politically, socially, and
economically unacceptable and is, therefore, of common concern to all countries.
The people have a right and duty to participate individually and collectively in the planning
and implementation of their health care.
REFERENCES
https://ruralindiaonline.org/en/library/resource/declaration-of-alma-ata/