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Guiding Health Resource Allocation: Using Population Net Health Benefit to Align Disease Burden with Cost

Megha Rao1, Simon Walker2, Karl Claxton2

  • 1Centre for Health Economics, University of York, York, UK. megha.rao@york.ac.uk.

Applied Health Economics and Health Policy
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Summary

The population net health benefit (NHB) metric integrates disease burden and cost-effectiveness for strategic healthcare resource allocation. NHB quantifies population health gains, aiding policymakers in making evidence-based decisions for universal health coverage.

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Area of Science:

  • Health Economics
  • Public Health Policy
  • Resource Allocation

Background:

  • Healthcare resources are limited, requiring strategic allocation for optimal population health.
  • Existing prioritization methods include burden of disease and cost-effectiveness analysis.
  • A unified metric is needed to align these concepts for better decision-making.

Purpose of the Study:

  • To introduce and demonstrate the population net health benefit (NHB) metric.
  • To show how NHB integrates disease burden and cost-effectiveness for resource prioritization.
  • To illustrate NHB's utility in informing policy decisions for universal health coverage.

Main Methods:

  • Developed the population net health benefit (NHB) metric.
  • Incorporated health opportunity costs and eligible patient population size into NHB.
  • Expressed NHB in disability-adjusted life years (DALYs) averted.
  • Used a stylized example to estimate NHB for four health interventions.

Main Results:

  • NHB provides a clearer understanding of intervention impact on population health.
  • Variations in patient population size and opportunity costs significantly affect NHB estimates.
  • NHB can be expressed as a proportion of total disease burden, indicating percentage of burden addressed.
  • Population NHB combines cost-effectiveness with disease burden components for comprehensive intervention selection.

Conclusions:

  • The population NHB metric offers a more comprehensive approach to health intervention selection and implementation.
  • NHB aids policymakers in making informed, evidence-based resource allocation decisions.
  • This metric is valuable for countries progressing towards universal health coverage.