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[Cost effectiveness and health sector reform]

P Musgrove1

  • 1The World Bank, Population, Health and Nutrition Department, Washington, D.C. 20433, USA.

Salud Publica De Mexico
|July 1, 1995
PubMed
Summary

This study explains health intervention cost-effectiveness, combining objective and subjective factors for accurate health benefit calculation. It confirms cost-effectiveness aligns with ethical norms like equity and suggests integration into health sector reforms.

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Area of Science:

  • Health economics
  • Public health policy
  • Medical ethics

Background:

  • Defines health intervention cost-effectiveness as the relationship between provision costs and resulting health improvements.
  • Health improvements encompass reduced illness/injury incidence, avoided/delayed death, and limited disability duration/severity.

Purpose of the Study:

  • To explain the calculation and interpretation of health intervention cost-effectiveness.
  • To assess the ethical consistency of cost-effectiveness with norms like equity.
  • To explore the incorporation of cost-effectiveness into health sector reform.

Main Methods:

  • Combines objective factors (age at incidence, mortality) with subjective factors (disability severity, value of life, discounting rate) for health benefit calculation.
  • Qualitative analysis to examine the ethical compatibility of cost-effectiveness with equity principles.
  • Exploratory approach to identify implementation strategies for cost-effectiveness in health sector reform.

Main Results:

  • Provides a framework for constructing and interpreting cost-effectiveness estimates.
  • Concludes that cost-effectiveness is not in conflict with ethical norms such as equity.
  • Identifies potential methods for integrating cost-effectiveness into health sector reforms.

Conclusions:

  • Cost-effectiveness analysis is a valuable tool for evaluating health interventions.
  • The ethical considerations, including equity, are compatible with cost-effectiveness principles.
  • Implementation of cost-effectiveness analysis can guide health sector reforms effectively.

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