Health Matters: Health Economics -Making the most of your budget

Welcome to the newest version of PHE’s Health Matters, a useful resource for native authorities, commissioners and healthcare professionals, which for this edition focuses on Health Economics and making the most of your budget.

The present state of affairs: Budget pressures and difficult commissioning choices

Prevention and early intervention are efficient means of bettering or sustaining health, lowering demand on the NHS and different public providers, and supporting financial progress. However, all native authorities and native public health groups are beneath budget pressures and must make more and more difficult choices over which providers to spend money on and disinvest from.

As such, there’s a want for assist in ensuring that commissioning choices made throughout public health programmes are strong, clear and defensible. This assist is especially vital for native areas who need to cut back the have to make funding choices based mostly on historic spending developments, or funding choices based mostly on lowering all programme budgets by the similar share; generally often known as ‘salami slicing’.

While a public health intervention is intuitively the proper factor to do, the financial case nonetheless must be made. The distinction between making an attempt to make the financial case for prevention versus remedy is that after a person is in want of remedy, it turns into a problem of human rights, whereas with prevention, the onus is extra on the particular person. Therefore, along with making the case for presidency to spend cash on prevention, additionally it is about making to the case to the public that they need to start taking accountability for their very own health and wellbeing.

How to get the most from your budget

There is a standard misunderstanding and misuse of the time period ‘return on investment’ (ROI) and its conflation with ‘cost saving’ to public providers; often the NHS. When the query “are public health interventions ‘cost saving’?” is requested, it’s usually taken to imply: “does the intervention deliver cashable financial savings to government budgets in the short term?”

However, short-term price financial savings are a excessive bar to set for public health interventions, and the purpose of public coverage shouldn’t be solely to realize most financial savings to public sector budgets. Most evaluation into the ROI of public health programmes appears to be like at total societal prices and advantages, which are sometimes measured over a longer-term horizon and embody each monetary and non-financial advantages, corresponding to enhancements in high quality of life and discount of health inequalities.

Changing wants and context imply that native authorities should regularly assessment which public health providers they supply for his or her inhabitants. Whether the determination to be made is round specific interventions, or a wider assessment of allocating assets throughout programmes, there are Health Economics instruments that may assist.

This version of Health Matters focuses on the assets that PHE’s Health Economics groups have to supply. All of these assets purpose to facilitate and simplify cost-effective determination making round commissioning, and are designed to be straightforward to make use of by these with no formal Health Economics .

Explore this version to be taught extra about:

  • The Prioritisation Framework
  • The Spend and Outcome Tool (SPOT)
  • The Health Economics Evidence Resource (HEER)

This edition of Health Matters additionally focuses on three interactive ROI instruments produced by PHE: psychological health providers, falls prevention, and motion into employment.

PHE’s Health Economics group could have a stand at the PHE Annual Conference on the 11th and 12th of September 2018. Please do go to the stand to seek out out extra about any of the Health Economics instruments and assets straight from the members of the group.

Health Matters

Health Matters is a resource for professionals, which brings collectively the newest knowledge and proof, makes the case for efficient public health interventions, and highlights instruments and assets that may facilitate native or nationwide motion. Visit the Health Matters area of GOV.UK or sign up to obtain the newest updates by way of our e-bulletin. If you discovered this weblog useful, please view other Health Matters blogs.

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