Cost-effectiveness analysis in the health sector when there is a private alternative to public treatment

Michael Hoel ()

No 2005:13, HERO Online Working Paper Series from University of Oslo, Health Economics Research Programme

Abstract: In health economics, cost-effectiveness is defined as maximized health benefits for a given health budget. When there is a private alternative to public treatments, care must be taken when using costeffectiveness analysis to decide what types of treatments should be included in the public program. The correct benefit measure is in this case the sum of health benefits to those who would not be treated without the public alternative and the cost savings to those who would otherwise choose private treatment. In the socially optimal ranking of treatments to be included in the public health program, treatments should be given higher priority the higher are costs per treatment for a given ratio of gross heath benefits to costs.

Keywords: Public health; cost-effectiveness (search for similar items in EconPapers)
JEL-codes: H42 H51 I18 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2009-06-07
New Economics Papers: this item is included in nep-hea and nep-ias
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.hero.uio.no/publicat/2005/HERO2005_13.pdf (application/pdf)

Related works:
Journal Article: Cost-Effectiveness Analysis in the Health Sector when There is a Private Alternative to Public Treatment (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hhs:oslohe:2005_013

Access Statistics for this paper

More papers in HERO Online Working Paper Series from University of Oslo, Health Economics Research Programme HERO / Department of Health Management and Health Economics P.O. Box 1089 Blindern, N-0317 Oslo, Norway. Contact information at EDIRC.
Bibliographic data for series maintained by Kristi Brinkmann Lenander ().