Health economic policies possess a series of unique and challenging issues, yet they are involved in addressing very delicate matters. Moreover, the trend towards liberation, market orientation, and privatization is reshaping the way policies are identified, designed, and evaluated (Drummond et al. 2015). The procedures discussed below should be followed to ensure healthcare economic policies are revised efficiently to make the current and future health care system more competitive.
The quality of policies and economic evaluation can be improved if demand analysis policies are made integral. For instance, when healthcare providers lower fees across the board, they enhance the access of medical care to the poor, as well as, the non-poor who use the facilities, thus, increasing competition (Baker, Bloom, & Davis, 2016). Competition from the public sector affects the supply of private sector alternatives. As such, when public user fees increase, the healthcare providers increase their prices in response to the increased demand. Consequently, to ensure the health economic policies are revised appropriately, there is a need for measuring the expected health outcomes. The measurement of the outcomes should also consider targeting the objectives (Baker, Bloom, & Davis, 2016). If the primary purpose of the policy is to improve the access of the poor to medical care, then improvements in their use and health outcomes should be weighted more heavily in the aggregation of benefits.
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The creation of solid healthcare economic policies also calls for the adoption of a cost-benefit analysis to identify the most competitive policies. Cost-benefit and cost-effectiveness analysis of health economic policies require that health outcomes be valued in monetary units to calculate the net economic benefit (Drummond et al. 2015). Also, it requires that a quantitative measure of health effectiveness be defined. In this regard, cost-effectiveness analysis examines health policies from the basis of minimizing costs for the same level of output, and thus this increases competition.
References
Baker, S. R., Bloom, N., & Davis, S. J. (2016). Measuring economic policy uncertainty. The Quarterly Journal of Economics , 131 (4), 1593-1636.
Drummond, M. F., Sculpher, M. J., Claxton, K., Stoddart, G. L., & Torrance, G. W. (2015). Methods for the economic evaluation of health care programmes . Oxford university press.
