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Clinical Economics Sections
Author Bio
Introduction
Model of Economic Analysis
Basic Principles of Costing
Currently selected section: Perspectives
Types of Analysis

Marginal and Incremental Analysis

Economic Efficiency
Sensitivity Analysis

Discounting

Conclusion
Case Study 1
Case Study 2
Acknowledgements


Chapter 12: Clinical Economics: Perspectives
         Viewpoints and Perspectives

There are four major viewpoints from which an economic analysis can be performed:

  • Society at large;
  • Third-party payer (including health insurance company and government agency);
  • Health care provider (e.g. health maintenance organization, clinic, hospital, clinician); and
  • The patient and family.

The most comprehensive viewpoint is that of society and includes the total economic cost (i.e. opportunity cost) of the different components of society, regardless of who bears this cost.

The third-party payer is interested in only those costs that pertain to reimbursement of the provider. From the payer's perspective, economic analyses involve the series of medical expenses incurred and avoided as a result of the health care intervention under scrutiny. Health care costs not covered by the payer's programs, however, are not considered in the evaluation. Direct nonmedical, indirect, and intangible costs are also excluded.

The provider, such as a hospital, is primarily concerned with direct medical costs that specifically affect its budget. Other costs, such as direct nonmedical and indirect costs, are not considered.

Costs to patients and their families are what they pay for the given health care interventions (i.e. the amount not covered by health insurance). Other patient costs could include time lost from work and such intangible costs as adverse reactions to therapy.

 

 

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