11/30/2023 0 Comments Production efficiency![]() Consider, for example, a policy of changing from maternal age screening to biochemical screening for Down’s syndrome. Technical efficiency cannot, however, directly compare alternative interventions, where one intervention produces the same (or better) health outcome with less (or more) of one resource and more of another. 4 The lower dose is technically more efficient.Productive efficiency A recent randomised trial showed that a 10 mg daily dose was as effective as a 20 mg dose. Consider treatment of osteoporosis using alendronate. An intervention is technically inefficient if the same (or greater) outcome could be produced with less of one type of input. A technically efficient position is achieved when the maximum possible improvement in outcome is obtained from a set of resource inputs. ![]() Refers to the physical relation between resources (capital and labour) and health outcome. 3 Inefficiency exists when resources could be reallocated in a way which would increase the health outcomes produced.Technical efficiency 2 Ideally economic evaluations should focus on final health outcomes.Īdopting the criterion of economic efficiency implies that society makes choices which maximise the health outcomes gained from the resources allocated to healthcare. Although many evaluations use intermediate outputs as a measure of effectiveness, this can lead to suboptimal recommendations. Efficiency is concerned with the relation between resource inputs (costs, in the form of labour, capital, or equipment) and either intermediate outputs (numbers treated, waiting time, etc) or final health outcomes (lives saved, life years gained, quality adjusted life years (QALYs)). 1 Health care can be seen an intermediate product, in the sense of being a means to the end of improved health. This note examines three concepts of efficiency: technical, productive, and allocative.Įfficiency measures whether healthcare resources are being used to get the best value for money. 1 Economists argue that the achievement of (greater) efficiency from scarce resources should be a major criterion for priority setting. Decision makers are increasingly faced with the challenge of reconciling growing demand for health care services with available funds.
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