The Influence of Economics on Healthcare Decision-Making
In the field of public health, there are many different tools used to assess the impact of a policy on health. Economic evaluation is a key tool for evidence-based decision making. It uses cost-benefit and cost-utility analyses to help leaders identify activities with a desired effect.
Behavioral economics is a subfield of economics that applies behavioral concepts to individual decisions and behavior. The theory holds that people are emotionally and cognitively motivated to make certain decisions. Behavioral models are applied to healthcare to help patients and consumers make better choices.
Behavioral economics has been shown to be effective in influencing behaviors in the health insurance industry. These tools include models that use statistical methods to predict how different scenarios will affect health. However, researchers have found that there are some behavioral principles that work better than others.
A full economic evaluation includes cost-benefit and cost-utility analysis, as well as health impacts. Using these methods, leaders can evaluate the impact of various policies and determine which have the greatest impact.
Behavioral economics has also been found to improve decision-making. Health models can demonstrate the dramatic effect that a policy can have on health. Moreover, these types of models can help raise awareness about the magnitude of the influence that a policy has on health.
Policymakers often seek evidence about the effectiveness of potential policy solutions. They may find arguments that a specific policy will reduce health-care costs or save lives. To be effective, these arguments need to be supported by evidence. Having an objective estimate of the effect of a policy on health is the best way to promote a policy that works.