The Economic Side to Other Health Issues

Production, costs, and insurance are naturally issues that involve economics, but many other health issues have economic components, even though they may seem to be purely medical concerns. A few examples illustrate this point. The choice of a health care treatment seems purely medical to many people, but physicians and other providers increasingly believe in evaluating and comparing alternative treatments on economic grounds. It is necessary to examine the costs of alternative techniques. Physicians are also increasingly sensitive to the economic side of the patient-physician relationship. The patient’s preferences are considered valid in determining the appropriateness of a given treatment. We also must explore the economic reasons behind people’s health choices. People take care of themselves well at some times and poorly at other times. People’s desired health status can be understood as a meaningful economic choice. Even addiction to a relatively benign substance such as caffeine or a harmful substance such as methamphetamine can be understood better when analyzed as a possibly rational economic choice. Other health issues clearly have an economic aspect: What role should the government play in health? What health care investments should a developing country make? Should cigarette advertising be banned? Questions like these are not solely economic; but they have an economic side.