ⓘ Health economics ..


Health economics

Health economics is a branch of economics concerned with issues related to efficiency, effectiveness, value and behavior in the production and consumption of health and healthcare. Health economics is important in determining how to improve health outcomes and lifestyle patterns through interactions between individuals, healthcare providers and clinical settings. In broad terms, health economists study the functioning of healthcare systems and health-affecting behaviors such as smoking, diabetes, and obesity. A seminal 1963 article by Kenneth Arrow is often credited with giving rise to hea ...


All-payer rate setting

All-payer rate setting is a price setting mechanism in which all third parties pay the same price for services at a given hospital. It can be used to increase the market power of payers versus providers, such as hospital systems, in order to control costs. All-payer characteristics are found in most developed economies with multi-payer healthcare systems, including France, Germany, Japan, and the Netherlands. The U.S. state of Maryland also uses such a model. All-payer rate setting have been proposed in the United States as a healthcare reform measure. The proposal for a public option a vo ...


Andersen healthcare utilization model

The Andersen healthcare utilization model is a conceptual model aimed at demonstrating the factors that lead to the use of health services. According to the model, usage of health services is determined by three dynamics: predisposing factors, enabling factors, and need. Predisposing factors can be characteristics such as race, age, and health beliefs. For instance, an individual who believes health services are an effective treatment for an ailment is more likely to seek care. Examples of enabling factors could be family support, access to health insurance, ones community etc. Need repres ...


Baumol's cost disease

Baumols cost disease is the rise of salaries in jobs that have experienced no or low increase of labor productivity, in response to rising salaries in other jobs that have experienced higher labor productivity growth. This pattern seemingly goes against the theory in classical economics in which real wage growth is closely tied to labor productivity changes. The phenomenon was described by William J. Baumol and William G. Bowen in the 1960s. The rise of wages in jobs without productivity gains is from the requirement to compete for employees with jobs that have experienced gains and so can ...


Belgian Health Care Knowledge Centre

The Belgian Health Care Knowledge Centre is an independent federal research institute in Belgium that provides multidisciplinary scientific advice to relevant persons and authorities on topics related to health care. More specifically, the KCE carries out research on the organisation and financing of the health system, assesses health technologies and drugs, establishes guidelines for clinical practice and updates them according to the latest scientific evidence, and establishes validated methods for research in the field of health care and public health. Aside from producing scientific re ...



Capitation is a payment arrangement for health care service providers. It pays a set amount for each enrolled person assigned to them, per period of time, whether or not that person seeks care. The amount of remuneration is based on the average expected health care utilization of that patient, with payment for patients generally varying by age and health status.

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