Health economics and wound care

How can we balance maximising benefits while minimising resource use? Here we run into one of the primary principles, and most confusing concepts for non-health economists, that governs health economics as a discipline:

Value for money is not the same as affordability

What is value for money in the healthcare space? To provide a very simplified example, let’s think of wound dressing selection in a clinical setting. It would be easy to assume that because wound dressing A is cheaper than wound dressing B, dressing A is the best choice because it is least expensive. But health economics takes numerous factors – not just item price – into consideration to make determinations about value for money.

Health economics is not about the price of care but takes into consideration both the outcomes important to patients, and the cost of the resources invested in delivering that care.

A true measure takes both into account. For example:

Value in healthcare delivery cannot be determined without an understanding of outcomes. By extension, in its application in real life, securing value for money is only possible by delivering the appropriate patient outcomes. For clinical staff and procurement professionals, quick, pragmatic decision-making should take both outcomes and cost into consideration.

In the coming weeks we will offer some unique insights into the fascinating world of health economics to help frame the conversations needed between clinicians and payers.