Principles in Health Economics and Policy is a concise introduction to health economics and its application to health policy. It introduces the subject of economics, explains the fundamental failures in the market for healthcare, and discusses the concepts of equity and fairness when applied to health and healthcare. This book takes a globally relevant, policy-oriented approach that emphasizes the application of economic analysis to universal health policy issues in an accessible manner. It explores four principal questions facing health policymakers all over the world. These questions are universal in that they are relevant no matter how much money a country spends on its health service, and no matter its political system. The structure of this book reflects the following logical order of these four questions: How should society intervene in the determinants that affect health? How should healthcare be financed? How should healthcare providers be paid? And, how should alternative healthcare programmes be evaluated when setting priorities? This book is an ideal reference guide for anyone interested in how the tools of health economics can be applied when shaping health policy. This Third Edition has been fully updated and expanded to include topics that have gained increasing policy attention. Lessons from the COVID-19 pandemic brought attention to several societal effects of contagious diseases: transmission of ill health, productivity losses, and significant impacts on public sector budgets. Furthermore, this third Edition discusses important sub-sectors such as pharmaceuticals, long-term care, and dental care, as well as international variations in the skill mix of health professionals.
