 | The 131st Annual Meeting (November 15-19, 2003) of APHA |
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| The 131st Annual Meeting (November 15-19, 2003) of APHA |
John F P Bridges, Ph D, Health Services Research, Case Western Reserve University, 10900 Euclid Av., Cleveland, OH 44106-4945, 216-368-6962, jfb12@cwru.edu
Health Economics is a multi-disciplinary field of study that draws from welfare and microeconomics, bio-statistics, epidemiology and many other disciplines. Health economists are now applying one important aspect from finance theory, namely portfolio theory, to the evaluation of health care interventions. Portfolio theory is concerned with the optimal investment strategy, based on both return and risk, and demonstrates the potential benefits from pooling different investments into a single portfolio. Furthermore, portfolio theory can be modified to allow for synergies between interventions. Given that in public health we often need to implement multiple health care interventions with a single, fixed health budget, portfolio theory is of benefit both theoretically and practically.
Using both theoretical and simulation modelling this paper demonstrates the importance of using a modified portfolio theory framework when evaluating a number of public health interventions from the perspective of a representative individual. While portfolio analysis in health care is theoretically appealing, there are a number of pragmatic reasons for using it. Portfolio theory emphasizes the trade-offs required by a fixed budget and the importance of taking a global perspective, rather than piecemeal one, in the evaluation of health care interventions. A number of limitations in the portfolio approach exist, but many of these concerns are found in all forms of economic evaluation in health care.
Learning Objectives:
Keywords: Evaluation, Economic Analysis
Presenting author's disclosure statement:
I do not have any significant financial interest/arrangement or affiliation with any organization/institution whose products or services are being discussed in this session.