why is health economics important

Examining the economics of health care can provide important information for people interested in health care reform or the analysis of the efficiency and effectiveness of a health care system. health sector, havecome under closer scrutiny.Thisinturnhas ... sible, both economic and clinical data should begathered in each country. Wealthier countries have healthier populations for a start. And it is a basic truth that poverty, mainly through infant malnourishment and mortality, adversely affects life expectancy. Health economics is the study of health care availability from an economic perspective, looking at what impacts availability, access, and pricing. What may be less obvious is that the opposite is also true – improving the health of a nation’s citizens can directly result in economic growth, because there will be more people able to conduct effective activities in the workforce. Health performance and economic performance are interlinked. Inconclusion, theultimate aimofeconomic evaluation istoassist decision making and not toreplace decision mak-ing. Health Economics is an applied field of study that allows for the systematic and rigorous examination of the problems faced in promoting health for all. Background: Economic analysis is an important tool in deciding how to allocate scarce public health resources; however, there is currently a dearth of such analysis by public health researchers. If we want to moderate the costs of both health care and health insurance, one way is to expand the supply of health care services. There’s a well-understood correlation that as the economy of a country improves, so the health of its citizens improves. Most of the discussion of health care and health insurance has focused on expanding coverage to more people. But perhaps equally important is looking at the providers – the suppliers – of health care.

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