"It is health that is the real wealth" – Mahatma Gandhi.

The courses in healthcare systems and health economics have been gaining popularity in the past few decades with the increasing demand of the healthcare professionals across the globe. Various top universities in the world are thus, now offering Master's degree courses in health economics, including the Australian universities such as Deakin University and The University of Adelaide.

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Health Economics

Before getting into the depth of what health economics, as a discipline, concerns with, let us first discuss the various factors that are responsible for the aggravated demand of healthcare all over the world, which include:

  • Population growth,

  • Ageing population,

  • Rising life expectancy,

  • Increasing expectations of the consumers,

  • Higher costs of treatments or surgeries,

  • A rise in chronic illnesses,

  • Higher relative poverty and inequality levels.

Economics as a discipline studies the scarcity of resources and their distribution under the unlimited demands, while healthcare economics considers healthcare facility as a commodity being synthesised and consumed, and tries to maximise the efficiency of healthcare as a commodity under the constraint of resources. The increasing demand of healthcare brings about the need for healthcare economics. So, what does health economics do? It basically tries to measure

  • The outcomes of health and how they must be valued.

  • How much shall be produced as healthcare or health outcome?

  • How much should we demand as a consumer or being a patient to furnish better health status?

  • How to evaluate the effectiveness and efficiency of a particular mechanism, as well as monitor or regulate the healthcare system?

  • The mechanism of healthcare financing from the individual, household or community level.

Economists evaluate a healthcare system’s effectiveness based on the three criteria, namely access, cost and quality, in terms of the planning and budgeting of the government and the hospitals.

Health economists also try to understand health insurances and different perspectives related to it, such as

  • Why an individual should buy health insurance?

  • Under which circumstances health insurance should be priced and how it should be priced?

  • What are the market imperfections of healthcare and related activities, including health insurance?

  • How are these prevailing imperfections being dealt with in different healthcare systems and countries?

Health economics primarily deals with microeconomics, which is the study of a market, dealing between the healthcare proprietors and the consumers, who usually are the patients. At the same time, macroeconomics also has a significant role to play in healthcare economics in terms of the healthcare budgeting of the government or the international NGOs and other organisations. Macroeconomics helps decide how and what aspects of healthcare should be provided free of cost and where privatisation should be invited and so on.

Of late, health economics, as a domain, is getting more prevalence because of the scientific advancements encompassed by the medical improvements and the increased awareness level among the consumers over the last few decades.

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With this exacerbated awareness and improved healthcare mechanisms, costs come into play as we now have choices. People tend to choose the extents of benefits, considering the costs associated with the different choices available to them.

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Health Systems and Economics Assignment Help

Health Systems and Economics Assignment Services

Health Systems and Economics Assignment Samples

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