Cost-Effectiveness Thresholds in Global Health: Taking a Multisectoral Perspective

Area of Science:

• Health Economics
• Public Health Policy
• Intersectoral Health Collaboration

Background:

• Good health depends on biological, environmental, behavioral, and social factors, not solely healthcare.
• Current economic frameworks for resource allocation often narrowly focus on healthcare services.
• This narrow focus risks overlooking significant health gains from non-health sectors and the broader benefits of health sector outputs.

Purpose of the Study:

• To analyze how existing cost-effectiveness thresholds may lead to suboptimal health outcomes.
• To propose and evaluate the cofinancing approach as a more efficient resource allocation strategy for population health.
• To explore the potential for cross-sectoral collaboration in health interventions.

Main Methods:

• Illustrative analysis of cost-effectiveness thresholds in multisectoral health interventions.
• Economic modeling of a cofinancing approach involving budget redistribution between sectors.
• Discussion of opportunity costs and marginal productivity in cross-sectoral resource allocation.

Main Results:

• Current cost-effectiveness thresholds can result in health losses when applied to interventions outside the health sector.
• The cofinancing approach offers a potential 'second-best' solution for more efficient health investment.
• This approach requires careful consideration of marginal productivities and potential transaction costs.

Conclusions:

• Rethinking economic frameworks is crucial for maximizing population health gains.
• Intersectoral cofinancing presents a promising strategy for optimizing health resource allocation.
• Further research is needed to validate measurement approaches and assess real-world efficiency gains from cofinancing.