Public Health Economics and Tools
Public Health Economists and Methods
Economics is the study of decisions—the incentives that lead to them, and the consequences from them—as they relate to production, distribution, and consumption of goods and services when resources are limited and have alternative uses. CDC uses economics to identify, measure, value, and compare the costs and consequences of alternative prevention strategies.
Economics and Public Health at CDC gives an example of public health economics in action at CDC.
Health economists use these general methods:
- Cost analysis of intervention/program, side effects, and illness. CDC economists have explored the costs of cancers, hospital-acquired infections, communicable diseases, and even an outbreak investigation for local health departments.
- Economic evaluation for comparing two or more interventions/programs in terms of costs or benefits; evaluations include cost-effectiveness, cost-benefit, and cost-utility analyses. CDC economists performed evaluations on screening options for diabetes, diagnostic options for HIV and TB, vaccine strategies, and injury prevention programs.
- Decision and transmission modeling includes developing and testing regression models, Markov decision-choice models, agent-based models, simulations, and theoretical mathematical models. CDC economists have performed modeling on vaccine strategies, HIV diagnosis and treatment, and state public health resource-allocation options.
- Regulatory analysis for anticipating and evaluating the impact of regulations on costs and/or behaviors. CDC economists' work in this area includes analyzing the effect of required pre-travel medical consultation for international travelers.
The following tools can be used to evaluate the costs and burden of various health problems and the effectiveness and efficiency of health programs. The tools were created by CDC and its partners.
+ Chronic Disease
Estimates state Medicaid expenditures for six chronic diseases (congestive heart failure, heart disease, stroke, hypertension, cancer, and diabetes), generating cost estimates for selected chronic diseases using customized inputs, such as prevalence rates and treatment costs
Obesity Cost Calculator
Estimates a company’s costs related to obesity based on characteristics of the organization (including medical costs and the dollar value of absenteeism resulting from obesity), and provides a module to assess expected savings of interventions to reduce obe
CDC Cost of Injury
Estimates costs of injury for fatal and nonfatal injuries, classified either by intent and mechanism, or by body region and nature of injury
Center for Health Care Strategies’ Return on Investment Calculator
Enables policy makers and program administrators from Medicaid, health plans, and healthcare organizations to evaluate the financial benefits of initiatives designed to improve healthcare quality and reduce costs
County Health Calculator
Estimates how education and income affect health outcomes at county or state levels
Physical Inactivity Cost Calculator
Estimates the costs of medical care, workers’ compensation, and lost productivity associated with physical inactivity
OSHA's “Safety Pays” Program
Uses a company's profit margin, the average costs of an occupational injury or illness, and an indirect cost multiplier to project the amount of sales a company would need to cover those costs and the potential effects on a company’s profitability
+ Economic Evaluation
HHS Guide to Analyzing the Cost-Effectiveness of Community Public Health Prevention Approaches
Provides practical advice to help program managers and evaluators understand, design, and perform cost-effectiveness evaluations of community public health prevention programs
US Department of Veterans Affairs Health Economics Research Center
Helps Veterans Affairs ( VA) researchers assess the cost-effectiveness of medical care, evaluate the efficiency of VA programs and providers, and conduct high-quality health economics research; also has course archives and alternatives for non-VA researchers for learning more about cost data and economic research
Economic Evaluation of Public Health Laws and Their Enforcement
Provides an overview of the tensions that exist when laws or regulations restrict activities harmful to health, with trade-offs required between the good of the whole community versus the good of an individual. For example, wearing a helmet substantially decreases a motorcyclist’s risk of death and the associated costs, yet legislation mandating helmets can be considered a restriction of freedom of choice.
Economic Impact Analysis Tool
Allows community programs to assess their own performance and use the data to leverage resources for their sustainability. Also translates project-specific impacts into community-wide effects, including any new health and community services provided, number of jobs created, wages earned, and overall impact on the economy.
Simulates the spread of influenza through a model community and assesses the impact of a variety of potential interventions (e.g., vaccinations, school closings, wearing of facemasks, patient and household isolation/self-quarantine). Also provides estimates for the numbers of cases, hospitalizations, and deaths that might be seen among different age groups in a representative community. Allows users to estimate the economic impact, in terms of days of work lost, of an influenza epidemic/pandemic in a community, calculating the savings and costs associated with one or more interventions.
Helps state- and local-level planners prepare for the next influenza pandemic by providing estimates of the potential impact specific to their locality, including deaths, hospitalizations, and outpatient visits due to pandemic influenza.
Helps laboratory directors estimate the demand for specimen testing during an influenza pandemic, and helps public health planners develop pandemic response plans. Estimates the daily number of specimens that may be delivered to a lab for testing and evaluates the testing capacity of a specific lab (e.g., how many samples can be tested per day or work shift) per pandemic transitional day found in each of the pandemic stages.
Estimates the surge in demand for hospital-based services during an influenza pandemic, such as the number of hospitalizations and deaths of a pandemic (whose length and virulence are determined by the user) and the number of people who would require hospitalization, ICU care, or ventilator support during a pandemic, given existing hospital capacity
Estimates the number of days lost from work due to an influenza pandemic
HIV Economic Model: (HIVEcon)
Helps assess costs and benefits of the proposed rule change to remove HIV infection from US immigration screening [PDF-160KB], evaluating both the potential number of HIV-positive immigrants to the United States and the health system costs over time, given the change in regulation
+ Policy Analysis
Mechanisms of Legal Effect: Perspectives from Economics
Over the past few decades, health economists have made substantial contributions to our understanding of how laws, regulations, and other policies can address market failures in order to improve public health. This publication provides an introduction to the concepts used by economists in this research.
+ Public Health Preparedness
Maxi-Vac 1.0 and Maxi-Vac Alternative
These tools assist with planning large-scale smallpox vaccination clinics with maximum patient flow-through. Users can select the number and type of professional resources available to operate a clinic (e.g., physicians, nurses), and the software will allocate those staff, optimizing clinic operations.
Estimates the baseline medical care requirements (i.e., the number of persons who would require medical care) of a displaced population following a disaster due to pre-existing medical conditions
National Health Security Preparedness Index
An annual measure of health security and emergency preparedness at the national, state, and community levels
Estimates the costs of Integrated Disease Surveillance and Response (IDSR) systems and the seven categories of resources: personnel, office operating items, transportation, laboratory materials and supplies, treatment and programmatic response items, media or public awareness campaigns, and capital items
Five-Part Webcast on Economic Evaluation
Webcast from CDC’s National Heart Disease and Stroke Prevention designed to help public health practitioners understand the value of economic evaluation and choose the appropriate economic analysis for their needs
Health Economics Information Resources: A Self-Study Course
Online course that gives an overview and discussion of important sources of health economics information, highlighting the characteristics of US healthcare financing and guiding users in the assessment of health economic evaluation studies
CDC Steven M. Teutsch Prevention Effectiveness Fellowship
A two-year, postdoctoral, applied training program that helps health policy decision-makers determine allocation and use of resources to maximize health impact
CDC Economic Evaluation of Public Health Preparedness and Response Efforts
Introductory course on applying economic evaluation techniques to public health preparedness and response strategies; tutorials include an introduction to economic evaluation, framing an economic evaluation, cost analysis, cost-effectiveness analysis, and cost-benefit analysis