Health Economic Principles in the UAE April 19, 2012

1. Health Economic Principles in the UAEApril 19, 2012 Immanuel Azaad Moonesar RD, BSc, Dip-ICND (UWI), NEBOSH, MQM (UOW), PhD Candidate

2. Structure Part A: • Healthcare Objectives of AD • Health Economic Principles-UAE • Factors • Outcomes Part B: • Question & Answer

3. Healthcare Objectives of AD • Healthcare Delivery AD= Transitions • The key objectives for the HAAD: • Improve quality of care • Expand access to services • Shift from public to private providers in alignment with world-class healthcare standards. • Implement a new financing model through a new system of mandatory health insurance (TEC, 2008).

4. Healthcare Objectives of AD • Upgrading Facilities to Meet Current and Projected Demand: • The Abu Dhabi Government has embarked on investment projects to improve healthcare provision in the Emirate (TEC, 2008)

5. Health Economic Principles- UAE • Health economic principles create a dynamic change and analysis which are driven by technology and research (Getzen, 2010)

6. Health Economic Principles-UAE • Importance • Helps us to not only understand the ‘how’, but also to understand the ‘why’ it is importance of economic growth of health care systems (Getzen, 2010). • When it comes to health, the first thing that comes to mind is illness and being sick, which is usually contingent, urgent, and uncertain (Zuger, 2008).

7. Health Economic Principles-UAE • Scarcity • Opportunity cost • Willingness to pay • Money flows in a circle • Choice • Investments

8. Factors: Healthcare Delivery • Some factors that drives the need for reform in healthcare delivery in terms of health economics: • The cost of healthcare is not sustainable (TEC, 2008) • Facilities and institutions need upgrading to meet expected demand (TEC, 2008)

9. Factors: Healthcare Demand • Factors that create the demand for health insurance (Morris, Devlin & Parkin, 2007): • Cost or price of health care • Income levels • Social status • Education

10. Factors: Healthcare Supply • Factors which influence supply: • Technological change (Dewar, 2010) • Input prices (Rohrer, 1990)

11. Demand • The demand for health care insurance exists because of the uncertainty associated with an individual’s state of health and the risk of very large expenditures in the case of illness and sickness (Dewar, 2010).

12. Supply • Supply refers to a schedule and curve relating the quantity to price (Williams & Lawrey, 2000). • For instance, the supply of physical facilities differs from the supply of other non-health markets in terms of the decisions to be undertaken and public policy development and implementation (Ginsburg & Koretz, 1983).

13. Healthcare Outcomes • To improve health • To increase longevity • To increase life expectancy • To increase number of Bed Spaces • To have better Quality of Life • To have access to healthcare services (Getzen, 2010).

14. References • Dewar, D. M. (2010). Essentials of Health Economics. Sudbury, Massachusetts: Jones & Bartlett Publishers. • Getzen, T. (2010). Health Economics and Financing (4th ed.) Hoboken, NJ: John Wiley and Sons. • Ginsburg, P. B. & Koretz, D. M. (1983). Bed availability and hospital utilization: estimates of the "Roemer effect".Health Care Finance Review. 5(1). 87-92. • Morris, S., Devlin, N., & Parkin, D. (2007). Economic Analysis in Health Care. West Sussex, England: John Wiley & Sons, Ltd. • Rohrer, J. E. (1990). Supply-induced demand for hospital care. Health Service Management Research. 3(1). 41-48. • The Executive Council (2008). Policy Agenda 2007-2008 The Emirate of Abu Dhabi. AD, UAE: The Executive Council. • Williams, J. B., & Lawrey, R. (2000). New Economics for Asia-Pacific: an issues-based modular approach. Sydney, Australia: The McGraw-Hill Companies. • Zuger, A. (2008). Healthy right up to the day you're not. New York Times, September 30, p. F.3.

15. Question & Answer • Contact Information Immanuel.moonesar@waldenu.edu