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Integrating equity and productivity in health evaluation
Kristian S Hansen1, Juan D Moreno-Ternero2, Lars P Østerdal3
1National Research Centre for the Working Environment (NFA), Copenhagen, Denmark.
Journal of Health Economics
|June 22, 2026
Summary
This study introduces a new framework for health outcome evaluation, balancing equity and productivity. It extends existing measures like QALYs to better assess interventions impacting both health and economic capacity.
Area of Science:
- Health economics
- Outcome measurement
- Public health policy
Background:
- Traditional health outcome measures like QALYs (Quality-Adjusted Life Years) do not fully capture equity or productivity.
- Existing extensions (PALYs, PQALYs) offer partial solutions but lack a unified approach.
- Assessing interventions requires methods that consider both health gains and economic productivity.
Purpose of the Study:
- To develop a unified framework for health outcome evaluation that integrates equity and productivity.
- To extend existing evaluation functions to incorporate both equity- and productivity-sensitive conditions.
- To provide a coherent foundation for assessing interventions where health and productive capacity are interdependent.
Main Methods:
- Developed a novel class of evaluation functions.
- Incorporated normative criteria such as scale independence and Pigou-Dalton transfer principles.
- Derived tractable power-form representations for the evaluation functions.
Main Results:
- Introduced a broader class of evaluation functions beyond QALYs, PALYs, and PQALYs.
- Established power-form representations based on specified normative criteria.
- Demonstrated a framework that balances equity and efficiency in outcome evaluation.
Conclusions:
- The proposed framework offers a coherent method for evaluating health interventions considering both equity and productivity.
- This approach provides a more comprehensive assessment than traditional measures alone.
- It is particularly valuable for analyzing interventions affecting both health status and economic productivity.
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