What Are Some Key Concepts in Health Economics Relevant to Epidemiology?

Several key concepts in health economics are particularly relevant to epidemiology:

Opportunity Cost: The value of the best alternative use of resources. In epidemiology, this concept helps determine what other health interventions could be funded if resources were not allocated to a particular program.
Cost-Benefit Analysis: A method that compares the total costs of an intervention to its total benefits, usually quantified in monetary terms. This helps in assessing whether the benefits of a health intervention outweigh its costs.
Quality-Adjusted Life Year (QALY): A measure that combines the quantity and quality of life gained from a health intervention. It is used to evaluate the value for money of medical interventions.
Incremental Cost-Effectiveness Ratio (ICER): A metric used to compare the cost-effectiveness of different health interventions. It is calculated by dividing the difference in costs between two interventions by the difference in their health outcomes.