Health Economics

The Element examines the economic perspectives on improving quality and safety in healthcare, highlighting the need for different approaches to stimulate improvement. It emphasizes the importance of economic evaluation of improvement efforts, using cost-effectiveness analysis to compare benefits and costs.

Format: Paperback / softback
Length: 42 pages
Publication date: 18 January 2024
Publisher: Cambridge University Press

This Element examines economic perspectives on improving quality and safety in healthcare. While economists generally acknowledge competition as a crucial driver of improvement, its application in healthcare presents complexities. This is partly due to the limited number of organizations providing certain services and the difficulty for individuals to assess healthcare quality accurately, as well as the fact that they rarely bear the full cost of services. Consequently, different approaches are required to stimulate improvement. The authors explore examples from the care home, primary care, and hospital sectors, emphasizing the importance of conducting economic evaluations of improvement efforts. They argue that such activities should only be pursued if the potential benefits exceed the costs of implementation and operation. Through the use of examples, the authors illustrate the economic approach to comparing the benefits and costs of improvement efforts by employing cost-effectiveness analysis. This title is also available as Open Access on Cambridge Core.

Introduction:
The healthcare sector faces significant challenges in improving quality and safety while ensuring efficiency and sustainability. Economic perspectives play a crucial role in shaping these efforts, as they provide insights into the factors that drive innovation, cost-effectiveness, and value for patients. In this Element, we will explore economic perspectives on improving quality and safety in healthcare, focusing on the role of competition, the challenges of assessing healthcare quality, and the need for different approaches to stimulating improvement.

Competition as a Driver of Improvement:
Economists widely recognize competition as a powerful driver of improvement in healthcare. The theory of competition suggests that organizations strive to provide better products or services at lower prices to attract and retain customers. In healthcare, this competition can lead to the development of new technologies, improved processes, and enhanced patient outcomes. However, the application of competition in healthcare is not straightforward, as it may not work effectively in all sectors.

Challenges of Assessing Healthcare Quality:
One of the challenges of assessing healthcare quality is the lack of transparency and information available to patients. Patients often have limited knowledge about the quality of services provided by different healthcare providers, making it difficult for them to make informed decisions about their care. Additionally, healthcare quality is influenced by a wide range of factors, including the skill and expertise of healthcare professionals, the availability of medical equipment and resources, and the overall healthcare system infrastructure.

Different Approaches to Stimulating Improvement:
Given the complexities of assessing healthcare quality and the challenges of competition, different approaches are needed to stimulate improvement. One approach is to encourage collaboration among healthcare providers, as this can lead to the sharing of best practices, the development of standardized protocols, and the improvement of patient outcomes. Another approach is to promote patient engagement and empowerment, as this can help patients to become more active participants in their care and to make informed decisions about their health.

Examples from the Care Home, Primary Care, and Hospital Sectors:
To illustrate the economic perspectives on improving quality and safety in healthcare, we will look at examples from the care home, primary care, and hospital sectors. In the care home sector, economic evaluations have been used to assess the cost-effectiveness of different care models and to identify areas for improvement. For example, one study found that implementing a person-centered care model in care homes can lead to significant cost savings while improving patient outcomes. In the primary care sector, economic evaluations have been used to assess the impact of different healthcare interventions, such as screening programs and preventive care, on patient outcomes and healthcare costs. For example, one study found that implementing a screening program for breast cancer can lead to significant cost savings while improving patient outcomes. In the hospital sector, economic evaluations have been used to assess the cost-effectiveness of different medical treatments and to identify areas for improvement. For example, one study found that implementing a bundled payment system for medical treatments can lead to significant cost savings while improving patient outcomes.

Conclusion:
In conclusion, economic perspectives on improving quality and safety in healthcare are essential for shaping effective policies and practices. While competition is recognized as a powerful driver of improvement, its application in healthcare presents complexities. Different approaches are needed to stimulate improvement, including collaboration among healthcare providers, patient engagement and empowerment, and the use of economic evaluations to assess the cost-effectiveness of different interventions. By adopting these approaches, healthcare organizations can strive to provide high-quality care that is both efficient and sustainable.

ISBN-13: 9781009325981