Studies in Social Policy

Similar documents
STUDIES IN ECONOMICS AND RUSSIA

Ethics and Cultural Policy in a Global Economy

INTERNATIONAL SANCTIONS IN CONTEMPORARY PERSPECTIVE

PARLIAMENTARY ACCOUNTABILITY

The Migration and Settlement of Refugees in Britain

INTERNATIONAL TRADE POLICY From Tariffs to the New Protectionism

Sex Worker Union Organising

RACE, GOVERNMENT AND POLITICS IN BRITAIN

Economics and Ethics

PRESIDENTIALIZING THE PREMIERSHIP

Military Executions during World War I

Modern Politics and Government

LAWYERS, THE STATE AND THE MARKET

HOSTAGE-TAKING TERRORISM

FULL EMPLOYMENT: A PLEDGE BETRAYED

THE WELFARE STATE IN BRITAIN SINCE 1945

Social Structure and Party Choice in Western Europe

COMMUNISTS AND NATIONAL SOCIALISTS

Designing US Economic Policy

THE POVERTY OF NATIONS

The Micro and Meso Levels of Activism

Defending the American Presidency

MICHAL KALECKI ON A SOCIALIST ECONOMY

Translating Agency Reform

Also by Maxwell Barrett

CLASSICAL THEORIES OF MONEY, OUTPUT AND INFLATION

The Political Economy of Exchange Rate Policy-Making

Introduction to International Politics

Also by Paul McLaughlin

Governance Theory and Practice

THE FORMATION OF THE FIRST GERMAN NATION-STATE,

THE SPECTRE OF DEMOCRACY

CHURCHILL'S PEACETIME MINISTRY,

THE MILITARY AND SOCIETY IN HAITI

THE INTERNATIONAL ADJUSTMENT MECHANISM

The Baltic States. The National Self-Determination of Estonia, Latvia and Lithuania

The British Prime Minister

Reflexivity and Development Economics

OPEC Instrument of Change

Fraud, Corruption and Sport

YOUTH, POLICING AND DEMOCRACY

Politicians and Rhetoric

Elections in Britain

Alan Williams (editor) HEALTH AND ECONOMICS

The New Governance of the English Regions

The European Union and Internal Security

Urban Sociology, Capitalism and Modernity

Agriculture and Politics in England,

Paternalism and Politics

Marxism and the State

Prime Minister, Cabinet and Core Executive

India, China and Globalization

Torture and the Military Profession

Reclaiming the Rights of the Hobbesian Subject

Morality Politics in Western Europe

Challenges for Europe

THE EUROPEAN ARMAMENTS MARKET AND PROCUREMENT COOPERATION

General Editors: Paul Collier and Jan Willem Gunning Published in association with the Centre for the Study of African Economies, University of Oxford

Modern Stateless Warfare

Enlightened Absolutism Reform and Reformers in Later Eighteenth Century Europe

DOI: / Democratic Governance in Northeast Asia

Political Traditions and UK Politics

Models of Local Governance

The Economic Dimensions of Crime

DOI: / Political Branding Strategies

Migrant Labour in Japan

Britain and the Spanish Anti-Franco Opposition,

Liberal Government and Politics,

Security, Citizenship and Human Rights

Also by Lawrence Quill. LIBERTY AFTER LIBERALISM Civic Republicanism in a Global Age

PARTY STRATEGIES IN BRITAIN

Previous books by author

DOI: / Sovereign Debt and Credit Rating Bias

Ireland: The Politics of Independence,

Social Welfare Development in East Asia

DeveloplDents in British Politics 4

Dramatizing the Political: Deleuze and Guattari

Britain and the Crisis of the European Union

Also by John Brown LEEWARDS: History and Society in the Leeward Islands THE UNMELTING POT: Immigrant Settlement in an English Town THE CHANCER (a

Marxism and Social Science

Opium, Soldiers and Evangelicals

SUPERPOWERS IN THE POST-COLD WAR ERA

The West, Civil Society and the Construction of Peace

A Century of Premiers

Language and Power in Court

MICKEY MOUSE NUMBERS IN WORLD HISTORY

The State in Business to the mid-1980s

CONTEMPORARY SECURITY AND STRATEGY

DISTRIBUTIONAL CONFLICT AND INFLATION

Youth, Multiculturalism and Community Cohesion

This page intentionally left blank

International Business and Political Economy

THE GEOPOLITICS OF GOVERNANCE

Islam, Security and Television News

Also by Robert Humphreys SIN, ORGANIZED CHARITY AND THE POOR LAW IN VICTORIAN ENGLAND

THE INCLUSIVE SOCIETY?

Global Financial Crisis: The Ethical Issues

Marxism, the Millennium and Beyond

Football Hooliganism in Europe

Also by Angélique du Toit. Also by Stuart Sim. CORPORATE STRATEGY: A Feminist Perspective

Transcription:

Studies in Social Policy 'Studies in Social Policy' is an important series of textbooks intended for students of social administration and social welfare at all levels. The books are directly related to the needs of undergraduate and postgraduate students in universities, polytechnics and similar institutions as well as vocational students preparing for careers in a variety of social and other public services. The series includes the following topics: the roles of different public and private institutions such as social services departments and building societies in meeting social needs; introductory guides to new technical and theoretical developments relevant to the analysis of social policy such as political theory and the newly emerging specialism of the economics of social care; contemporary social policy issues such as the use of charges in the delivery of social welfare or the problem of determining priorities in the health and personal social services.

Studies in Social Policy Editor: Ken Judge Published Access to Welfare Peggy Foster Health Policy in Britain Christopher Ham Policy-making in the National Health Service Christopher Ham Pricing the Social Services Ken Judge (ed.) The Economics of Social Care Martin Knapp Choices for Health Care Gavin H. Mooney, Elizabeth M. Russell and Roy D. Weir Political Theory and Social Policy Albert W eale Forthcoming Social Policy and Housing David Clapham, Peter Kemp and Susan Smith Low Pay and Family Poverty in Northern Ireland John Ditch, Mike Morrissey, Pat McGinn and Richard Steele The Welfare State John Macnicol

Choices for Health Care A Practical Introduction to The Economics of Health Provision SECOND EDffiON Gavin H. Mooney Elizabeth M. Russell Roy D. Weir Department of Community Medicine University of Aberdeen M MACMILLAN

Gavin H. Mooney, Elizabeth M. Russell and Roy D. Weir 1980, 1986 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 33-4 Alfred Place, London WCIE 7DP. Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages. First published 1980 Second edition 1986 Reprinted 1989, 1990 Published by MACMILLAN EDUCATION LTD Houndmills, Basingstoke, Hampshire RG21 2XS and London Companies and representatives throughout the world British Library Cataloguing in Publication Data Mooney, Gavin H. Choices for health care: a practical introduction to the economics of health provision-2nd ed. I. Medical economics-great Britain I. Title II. Russell, Elizabeth M. III. Weir, Roy D. 338.4'73621'0941 RA410.55.G7 ISBN 978-0-333-41906-9 ISBN 978-1-349-18252-7 (ebook) DOI 10.1007/978-1-349-18252-7

Contents Preface to the First Edition viii Preface to the Second Edition X Acknowledgements XI 1 Choices for Health Care 1 The need for choice 1 Why economics? 3 Outline 8 2 The Framework for Choice 10 The approach of programme budgeting 10 The nature of programme budgeting 13 Conclusion 17 3 A Framework for Evaluation 18 Alternative patterns of care within programmes 19 Evaluation framework of marginal analysis 24 Summary 33 Appendix 34 4 Techniques for Evaluation 40 Cost-effectiveness analysis 40 Cost-benefit analysis 48 Conclusion 59 Appendix 61 5 A Case Study in Programme Budgeting 64 Methodology 65 Some findings 68 Programme budgeting within a programme 74 Conclusion 76

vi Contents 6 Marginal Analysis: a Case Study in Care of the Elderly 78 Method 79 Results 84 Conclusion 93 7 Some Case Studies in the Application of Cost-Effectiveness and Cost-Benefit Analysis 95 The sixth stool guaiac 96 Child-proof drug containers 99 Breast cancer screening 100 Duodenal ulcer treatment 102 Provision of acute beds 105 Congenital toxoplasmosis 106 Breast cancer screening (again) 109 Motorway crash barriers 110 Conclusion 111 8 An Introduction to the National Health Service 113 The National Health Service 114 An overview of the service 117 Staff interactions within authorities 118 External sources of advice and control 122 Summary 123 9 The Operation of the Service 125 The overview 125 At unit level and within the major services 129 Individual services or health care teams 131 Pre-emption of resources 135 Summary 137 10 Planning and Health Care 139 Relating outputs to inputs 140 Information for planning 141 Incentives for planning 146 Summary 154

Contents vii 11 Some of the Choices References Select Bibliography Index 157 172 176 177

Preface to the First Edition Health economics is still a relatively young science. It is only in the past decade or so that economists in the United Kingdom have begun in earnest to consider how the discipline of economics can be used to assist planning and decision-making in health care. At the present time there is no book available which combines some simple, easily understood economic techniques with a full awareness of the problems of decision-making in health care and with guidelines as to how the approach of health economics can be introduced and used at different levels of health care management and planning. This book is intended to fill this gap and is based on the practical experiences over the past five years of a small team of economists and health care staff who have introduced such principles and techniques to their colleagues and into the day-to-day working of a health board. The philosophy of economics is perhaps just as important, if not more so, than the application of economic techniques. Economics does not seek to alter the values of different groups but it does try to understand them and set them in a framework of choice so that the implications of the different choices are clearly identified. Such valuation is central to planning and decision-making in health care but all too seldom are the values made explicit. These are the prime issues to which economics can be applied in health care although there is still much to be done at the practical level to improve the relevant concepts, theories and techniques. This book attempts to show how best to apply the approaches in health care planning and how it might be achieved. It is inevitable that in advocating greater rationality and explicitness in health care planning and decision-making criticisms are made of the health service. Such criticisms, however, are intended to be constructive. For those interested in how the health service viii

Preface to the First Edition ix functions and how it might be made to function better, it is hoped that this book will provide some relevant food for thought. Department of Community Medicine University of Aberdeen January 1979 G.H.M. E.M.R. R.D.W.

Preface to the Second Edition More than six years on from writing the preface to the first edition of this text, we find that little has changed. That comment may seem somewhat odd to those in the health service who suffered yet another reorganisation in 1982 and who are currently unsettled by the changes going through as a result of the Griffiths initiative. None the less there are perhaps greater grounds for optimism than six years ago; the attempts to introduce budgeting changes and to provide management information are examples of new opportunities. But these will be of little benefit without a willingness to understand and use the information that is becoming available. In the second edition we have updated where necessary the material we used previously to exemplify the contribution the techniques of economic analysis can make to such understanding and use. We have also attempted to reflect the management changes that have occurred without trying to forecast where those are likely to lead the service. Wherever that might be economics has an important part to play. In that respect nothing has changed. Department of Community Medicine University of Aberdeen June1985 G.H.M. E.M.R. R.D.W. X

Acknowledgements Many people have contributed in several ways to the writing of this book, to discussions surrounding many of the ideas expressed and to some of the studies reported. We are indebted, in no small measure, to Ianthe Dingwall Fordyce for her penetrating but always constructive criticism and statistical assistance. Our particular thanks are also due to the members of the Health Economics Research Unit and the Department of Political Economy, both of Aberdeen University, and to numerous officers of Grampian Health Board. We are grateful to Isabel Tudhope for the repeated drafts she prepared and to the Scottish Home and Health Department for financial support for some of the research outlined in the book. Any remaining errors and the opinions expressed are, of course, the responsibility of the authors alone. xi