SYLLABUS OF 1st LECTURE
23. 9. 2019
PharmDr. Bc. Dana Mazankova, Ph.D.
Principles of Health Care Economics
Production process - scarce resources, opportunity costs
Market - supply, demand, price theory
Course: Health Care Economics (FAEZ1)
winter semestr 2019-2020
Guarantor and lector of course:
PharmDr. Bc. Dana Mazankova, Ph.D.
Dpt. of Applied Pharmacy
E-mail: mazankovad@vfu.cz
Time schedule of course:
Monday (once a 2 weeks - every odd calandar week):
10.30 – 11.45 lecture
11.45 – 13.15 seminar
Place: building No 45 (Pavilon of Pharmacy II.)
seminar room No 224
Principles of Health Care Economics
• Health Care Economics from a Public Health point of view
• Health Care Economics from a Economics point of view
Application of economic theory to analysis of decision-making by:
- individuals
- health care providers
- governments
with respect to health and health care
Production process
Inputs (resources)
Production proces Mediating factors
Outputs (goods, services)
Inputs
Outputs
Mediating factors
Resources and its scarcity
• resources are known to be limited in quantity
= Scarce resources
• problem of scarcity of resources
Opportunity costs
= If scarce resources are used to produce a good (or service),
those resources cannot be used to produce other goods (or
services)
- expressed as:
the benefits that would have resulted from their best
alternative use
Markets
the interaction of those who wish to buy (buyers, consumers)
and those who wish to sell (sellers, suppliers)
Consumers and suppliers base their buying and selling on the
price that they have to pay or will receive.
1. Creating of supply
Supply (S) express relationship between:
• amount of produced and offered production (qantity – Q), and price (P),
for which are sellers able to sell
Supply curve
„Rule of growing (increasing) supply“
2. Creating of demand
DEMAND (D) express relationship between:
• amount of demanded production (qantity – Q) a price (P), for which are
buyers able to buy
Demand curve
„Rule of decreasing demand“
3. Creating of price
Consumers and suppliers base their buying and selling on the price that
they have to pay or will receive.
Price therefore acts as a signal to both groups
Price (P) resultes from supply (S) and demand (D) interference
and its changes reflect relationship between supply (S) and demand (D)
Creating of price
Market
Supply
(S)
Demand
(D)
Price
(P)