Modules

Module 1 – Introduction to Economics and Health Economics

Introduction

This module begins by introducing you to Economics as a discipline. Consideration is then given to the commodity health care. It is shown that given its characteristics, government intervention is necessary to aid its efficient delivery. This raises questions concerning what services to provide (discussed in modules 2 & 3), as well as issues around the financing and organisation of health care (module 4). Module 1 also introduces a number of fundamental economic concepts that are encountered throughout the course (demand, opportunity cost and marginal analysis).

Aims

• To understand how health care differs from other commodities and to consider the implications of these differences for the organisation and delivery of health care.
• To understand and be able to apply certain economic concepts.
• To appreciate the strengths and weaknesses of these economic concepts when used to analyse health care decision-making.

Seminar

There will be a two day seminar held in Edinburgh.

Assignment

The assignment will be in two parts. The first section will be a series of very short questions (30%) and the second section will be four short note questions (70%), which will be due on the last day of the module.

Please Note: All course material and assignments will only be available online via MyAberdeen.

Module 2 – Economic Evaluation – Principles and Frameworks

Introduction

This module covers issues involved in identifying, measuring and valuing costs and benefits. The importance of some of the key economic concepts introduced in Module 1 will be demonstrated. Consideration will be given to the importance of health outcomes, non-health outcomes and process attributes when valuing the benefits of health care interventions. The student will be introduced to Quality Adjusted Life Years (QALYs) and the use of standard gamble and time-trade off to estimate quality weights within the QALY framework. Consideration will be given here to the creation and use of generic QALY measures such as EuroQol; as well as specific QALY measures. The QALY measure is concerned with valuing health outcomes. Contingent Valuation and discrete choice experiments have been developed in health economics to go beyond the health outcome paradigm, and consider the value of non-health outcomes and process attributes. These techniques will be introduced and explained, using examples from health care. It should be noted that whilst these techniques were introduced to go beyond health outcomes, they can also be used to value such outcomes. It will be shown how costs and benefits can be brought together within the framework of an economic evaluation (e.g. cost-effectiveness analysis, cost-utility analysis and cost-benefit analysis).

Aims

• To be aware of the costs and benefits to be considered in an economic evaluation, as well as how to value these costs and benefits.
• To be familiar with the main approaches to economic evaluation (cost-effectiveness, cost-utility analysis and cost-benefit analysis) and know when to use these different approaches.
• To appreciate the strengths and weaknesses of the different approaches to economic evaluation.
• Understand the key notions of opportunity cost, marginal analysis, discounting and sensitivity analysis within the framework of an economic evaluation.

Seminar

There will be a two day seminar held in Edinburgh.

Assignment

The assignment will be based on 3 short essay question (100%) which will be due on the last day of the module. 

Please Note: All course material and assignments will only be available online via MyAberdeen.

Module 3 - Economic Evaluation - Application and Policy

Introduction

This module will use examples from the literature to demonstrate the actual application of economic evaluation in practice. Consideration will also be given to pragmatic developments and policy applications of economic evaluation – this will include practical examples for priority setting, modelling and economic evaluation alongside trials and systematic reviews (including NICE) and NHS business case analysis.

Aims

Practical issues in the design of economic evaluation:

• To consider how to identify and extract appropriate data for use in an economic evaluation
• To introduce analysis of individual patient data from trials and modelling from systematic reviews
• To understand how these data can be used to provide estimates of efficiency

Pragmatic developments of economic evaluation for policy setting:

• To introduce programme budgeting and marginal analysis and NHS business case analysis
• To consider how these approaches relate to CEA, CUA and CBA
• To consider the strengths and limitations of economic evaluation as a tool for policy makers.

Seminar

There will be a two day seminar held in Edinburgh.

Assignment

The assignment will be based on two essay question (50% each) which will be due on the last day of the module.

Please Note: All course material and assignments will only be available online via MyAberdeen.

Module 4: Health Care Systems and Policy

Introduction

This module looks at different types of health care systems. The main aspects of this will be the modes of finance and provision, levels and allocation of expenditure and the implications of these for efficient and equitable use of health care resources. Building on material from Module 1 it will cover a range of issues relevant to many health care systems: the application of supply and demand theory; the complex relationships between the transactors in health care; the patient as consumer; user charges; supplier; incentives; reimbursement and competition.  The material will draw on a range of experiences from the UK, continental Europe, North America and Australia.

Aims

• To identify the characteristics of an international selection of health care systems covering private and public models of health care finance and delivery. To identify the possible objectives of health care systems and consider how the different models meet these objectives within the context of market failure in health care.
• To apply the concept of demand to the consumers of health care. To examine the effects of user charges and to consider the independence of demand from supply in health care.
• To apply the concept of supply to the behaviour of the institutions and actors within the health care systems. To understand how hospitals, doctors and others respond to incentives and the extent to which their economic relationships are tempered by agency.

Seminar

There will be a two day seminar held in Edinburgh.

Assignment

The assignment will be based on one essay question (100%) which will be due on the last day of the module.

Please Note: All course material and assignments will only be available online via MyAberdeen.