Module Catalogue 2024/25

Pre Requisite Comment

None

Co Requisite Comment

None

Aims

The aim of this module is to introduce students to economic thinking and techniques which are of use in formulating and analysing health policy.

Session 1 will introduce economics and outline basic economic theory of the demand and supply of health.

Session 2 will introduce economic evaluation which is a type of economic analysis used to inform decision making, and discuss equity considerations.

Session 3 will cover different types of health outcome valuation techniques used to inform economic evaluation.

Session 4 will cover discrete event choice experiments to evaluate people’s preferences, which is used in economic evaluation. The costing methods used in economic evaluation will be covered.

Session 5 will introduce economic modelling, which is used to estimate outcomes of health care interventions in economic evaluations not solely based on the outcomes reported in single clinical studies.

Session 6 will look at the critical appraisal of economic evaluations.

Outline Of Syllabus

This module will provide an introduction to some fundamental concepts of economics that are relevant for health policy decision making and analysis. Health economic studies are widely used in the UK to inform treatment guidelines and the organization of health services to maximise the health of the population and to improve equity. The first and second sessions will focus on how markets work, why they fail in healthcare, an introduction to health economics and economic evaluation, and equity considerations. This includes the three main types of economic evaluation (cost-effectiveness analysis, cost- utility analysis and cost-benefit analysis), how and when they should be applied, and their pros and cons will be discussed.
The third and fourth sessions will focus on different methods for measuring benefits in economic evaluation, including QALYs, and methods to estimate costs. There will be a group exercise and discussion on outcomes. Preference elicitation methods will include contingent valuation and discrete choice experiments. There will be a costing session which will include the definitions of costs and how costs can be identified, measured, and valued in an economic evaluation.
The fifth session will introduce students to economic modelling and priority setting techniques, which will make use of the economic evaluation tools covered in sessions 2 to 4. The introduction to economic modelling will explain what an economic model is, when modelling may be needed within an economic evaluation and the advantages and disadvantages of economic modelling.
The sixth session will focus on how to interpret and critically appraise an economic evaluation. Students will then be introduced to the assignment.

Intended Knowledge Outcomes

•       Describe the fundamental principles of health economics
•       Apply the fundamental principles of health economics to decision making in healthcare
•       Discuss the role of markets in the demand and supply of healthcare
•       Discuss the different methods for measuring costs and benefits in economic evaluation
•       Discuss different methods for eliciting preferences and the strengths and weaknesses of each method
•       Interpret the results of discrete choice experiments
•       Discuss when economic modelling is appropriate and the pros and cons of modelling
•       Apply the appropriate technique of economic evaluation to resource allocation decisions

Intended Skill Outcomes

At the end of the module students should be able to:
• Analyse particular health care reforms applying economic theory
• Analyse health policy initiatives applying economic theory.
• Analyse economic evaluations that inform healthcare decision making

Teaching Rationale And Relationship

The teaching and learning methods used, with the emphasis on practical activities in small groups and general interaction, were felt the most appropriate methods for a masters course with relatively small student numbers. Most of the students have significant experience of working in the health service, and the interactive nature of the learning methods enables them to discuss their experience and to relate that to the concepts and ideas being taught, thus aiding their knowledge and understanding of the subject area.

Assessment Rationale And Relationship

The assessment is a 2000-word assignment split evenly between two essays. The two essays cover the critical appraisal of a recently published economic evaluation (one which the students are likely to encounter in their day-to-day work) providing students with the opportunity to apply their understanding of economic theory and economic evaluation in practice. This type of assignment allows students to use their analytical reasoning skills and knowledge of theory.

General Notes

N/A