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Introduction to Health Economics and Outcomes Research (HEOR) - Olga Pitsillidou

Introduction to Health Economics and Outcomes Research (HEOR) Presenter: Olga Pitsillidou, Health Insurance Organisation, Cyprus Health economics is a specialized field of economics focusing on the efficient allocation of finite resources within healthcare systems. Unlike traditional economics, health economics addresses unique challenges such as market failures, uncertainty in disease incidence and treatment efficacy, and information asymmetry. It provides tools for evaluating health interventions and optimizing resource allocation to maximize health outcomes. Central to health economics is the application of Health Technology Assessment (HTA) and economic evaluation. These methodologies assess the cost-effectiveness and value of medical technologies, aiding policymakers in reimbursement and resource allocation decisions. Key metrics such as Quality-Adjusted Life Years (QALYs) and Disability-Adjusted Life Years (DALYs) quantify health benefits and disease burden, enabling comparative analysis across interventions. The presentation introduces fundamental concepts such as opportunity costs, trade-offs, and health utility measurement, encompassing direct and indirect methods like generic and disease-specific questionnaires. It also delves into economic evaluation techniques, including cost-effectiveness analysis (CEA), cost-utility analysis (CUA), and incremental cost-effectiveness ratios (ICERs), highlighting their role in balancing costs with health outcomes. Additionally, budget impact analysis (BIA) and cost-of-illness (CoI) analysis are explored, emphasizing their importance in assessing affordability and prioritizing diseases. These methods ensure health programs align with financial and implementation feasibility while addressing equity and efficiency. Health systems must employ these tools to allocate resources effectively, enhance social welfare, and minimize opportunity costs. By integrating health economics into decision-making, healthcare professionals can contribute to sustainable and equitable healthcare delivery. This presentation underscores the critical role of health economics in navigating the complexities of healthcare systems, fostering a deeper understanding among stakeholders to support informed, value-based decisions