Suppose you work for a healthcare organization and your local government is considering establishing something called a health effectiveness analysis program (HEAP). The purpose of this program would be to look for areas of intervention that would promote health and save money for the state and its people.
You have been asked to write a brief memo for your organization's leadership. Using the example of childhood immunizations, identify and briefly discuss three or more issues or questions that are likely to arise in making economic evaluations (e.g., costâbenefit or cost-effectiveness analyses) of health interventions. What impact would this intervention have on demand and consumer behavior in the long run?
Full Answer Section
Issue 1: The difficulty of quantifying benefits
One of the biggest challenges in economic evaluations of health interventions is quantifying the benefits of the intervention. In the case of childhood immunizations, the benefits include the prevention of diseases such as measles, mumps, and rubella. However, it is difficult to quantify these benefits in monetary terms. For example, how much is it worth to prevent a child from getting measles? There is no easy answer to this question.
Issue 2: The cost of the intervention
Another challenge in economic evaluations of health interventions is estimating the cost of the intervention. In the case of childhood immunizations, the cost includes the cost of the vaccines, the cost of administering the vaccines, and the cost of any adverse events that may occur. The cost of childhood immunizations can vary depending on a number of factors, such as the type of vaccine, the number of doses, and the age of the child.
Issue 3: The time horizon for the analysis
Economic evaluations of health interventions typically have a time horizon of 10 to 20 years. This is because the benefits of many health interventions, such as childhood immunizations, take time to materialize. However, it is difficult to predict what the costs and benefits of a health intervention will be 10 or 20 years in the future. This can make it difficult to make accurate economic evaluations.
Impact on demand and consumer behavior
The introduction of a HEAP program could have a number of impacts on demand and consumer behavior. For example, if the program makes childhood immunizations more affordable, it could lead to an increase in demand for these services. Additionally, if the program provides information about the benefits of childhood immunizations, it could change consumer behavior and lead more parents to have their children vaccinated.
Overall, there are a number of challenges and uncertainties associated with economic evaluations of health interventions. However, these evaluations can be a valuable tool for decision-making. By carefully considering the issues and questions discussed in this memo, healthcare organizations can make more informed decisions about the allocation of resources.