Practical health economics
The importance of health economics and health economic evidence is frequently discussed among health care providers as well as within medtech suppliers. But how is the concept of health economics defined?
In order to choose one definition, we have chosen the Swedish Public Health Authority’s definition which we believe is simple and clear.
A clear definition
The theoretical definition is relatively clear while the concept of “health economics" for many can be seen as complicated. But does it have to be theoretical and complicated? Both yes and no. Depending on the area of use, the need for complexity differs.
“Health economics is a discipline in economics that is used to analyze and assess the costs and effects of interventions in health care. Health economics evaluations make it easier to prioritize between treatments as well as preventive measures, and aims to clarify which alternative gives the greatest possible health to the population, given the resources that are available. It is important to emphasize that the purpose of health economic analyzes is not to save money, but to use the available resources to maximize public health”
Ref: “The Swedish Public Health Authority"
For national extensive research, as well as for many pharmaceutical and medtech studies, complex study designs and high quality evidence are required. At the same time, a very simple “Budget Impact model" (BIM) is a form of health economics if it is used in the right context. Between a simple BIM and large resource-intensive studies, there is room for what we call “Practical health economics".
We firmly believe in “de-complicate” the word health economics. Start using practical health economics right from the start in R&D and early-stage studies, all the way to the work with marketing strategy and as an active part of the sales process.
Some simple questions about health economics
There are some basic questions to ask when discussing health economics that can be used as a benchmark for the way forward.
The questions may seem simple but the one who really has answers to these has come a long way:
- Which specific patient or therapy area do we intend to compete in?
- Which comparator do we want or will we be compared to?
- Who is the recipient of the health economic result?
For healthcare providers
Although the concept of health economics is widely discussed by decision makers in health care, a change in the process of purchasing services and products is needed. Purchasing organizations need to ask for health economic evidence to a greater extent, and in the next phase, find ways to reward those suppliers who choose to invest in developing health-economic evidence for their products and services.
Interested in practical health economics
If you want to know more about the concept “Practical health economics" and how you can use health economics as a natural and integrated part of the development, marketing and sales process, you are most welcome to contact us.