Homework Help is Here – Start Your Trial Now!
Business
Economics
Define the term 'opportunity cost'. 2. Explain why the NHS has to make 'tough choices' about what it offers patients. 3. Discuss, from an economic viewpoint, whether it should be a committee of cancer experts that decides which drugs should be offered on the NHS or an independent cormittee like NICE.

Define the term 'opportunity cost'. 2. Explain why the NHS has to make 'tough choices' about what it offers patients. 3. Discuss, from an economic viewpoint, whether it should be a committee of cancer experts that decides which drugs should be offered on the NHS or an independent cormittee like NICE.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
See similar textbooks
icon
Related questions
Question
100%
Q 1. Define the term 'opportunity cost'. 2. Explain why the NHS has to make 'tough choices' about what it offers patients. 3. Discuss, from an economic viewpoint, whether it should be a committee of cancer experts that decides which drugs should be offered on the NHS or an independent cormittee like NICE.
Unit 3 Data Response Question The National Health Service faces tough choices Politicians and health officials must be more honest with the public about the tough choices facing the National Health Service (NHS), according to Sir Andrew Dillon, the head of NICE (the National Institute for Health and Care Excellence). It is the responsibility of NICE to decide which drugs are value for money and can be prescribed by the NHS and which drugs will not be available to NHS patients. Andrew said: The NHS has to exercise choices, sometimes, in order to ensure its resources are allocated as fairly as possible. The NHS spends £13 billion a year on pharmaceuticals, about 12 per cent of its total budget. It was reported this month that NICE ruled that two cancer drugs - Zytiga® for prostate cancer and Kadcyla® for breast cancer - were not cost-effective for the NHS, the latest expensive cancer medicines to be rejected by the agency. Roche, the Swiss pharmaceuticals company, said the refusal to back its Kadcyla drug, which typically extends life by about six months at a cost of £90 000, showed that the UK's drug evaluation system was 'no longer fit for purpose'. It has been suggested that the price of new medicines will continue rising - particularly for cancer - because drug companies expect to make a profit on their heavy investment in research and development. Sir Andrew pointed out that, whatever the funding for the NHS, there will always be an 'opportunity cost'. Choosing to expand treatment in one area meant that 'something else cannot be done. Source: adapted from the Financial Times 23.8.2014, All Rights Reserved. 16 1. Define the term 'opportunity cost'. 2. Explain why the NHS has to make 'tough choices' about what it offers patients. 3. Discuss, from an economic viewpoint, whether it should be a committee of cancer experts that decides which drugs should be offered on the NHS or an independent committee like NICE. ang p rease the va derm wiw OFENSIVE T Evaluation It is very important in a question like this to use economic terms like scarcity, choice, opportunity cost and positive and normative statements. What value judgements do you think the two types of committee would make? Would they come to different conclusions about a drug like Kadcyla? Would it be in the best interests of all NHS potients if choices about which drugs to buy were made by cancer experts? 02:0 al gobaby s prilap to insbutą Speisva od: no ar
Transcribed Image Text:Unit 3 Data Response Question The National Health Service faces tough choices Politicians and health officials must be more honest with the public about the tough choices facing the National Health Service (NHS), according to Sir Andrew Dillon, the head of NICE (the National Institute for Health and Care Excellence). It is the responsibility of NICE to decide which drugs are value for money and can be prescribed by the NHS and which drugs will not be available to NHS patients. Andrew said: The NHS has to exercise choices, sometimes, in order to ensure its resources are allocated as fairly as possible. The NHS spends £13 billion a year on pharmaceuticals, about 12 per cent of its total budget. It was reported this month that NICE ruled that two cancer drugs - Zytiga® for prostate cancer and Kadcyla® for breast cancer - were not cost-effective for the NHS, the latest expensive cancer medicines to be rejected by the agency. Roche, the Swiss pharmaceuticals company, said the refusal to back its Kadcyla drug, which typically extends life by about six months at a cost of £90 000, showed that the UK's drug evaluation system was 'no longer fit for purpose'. It has been suggested that the price of new medicines will continue rising - particularly for cancer - because drug companies expect to make a profit on their heavy investment in research and development. Sir Andrew pointed out that, whatever the funding for the NHS, there will always be an 'opportunity cost'. Choosing to expand treatment in one area meant that 'something else cannot be done. Source: adapted from the Financial Times 23.8.2014, All Rights Reserved. 16 1. Define the term 'opportunity cost'. 2. Explain why the NHS has to make 'tough choices' about what it offers patients. 3. Discuss, from an economic viewpoint, whether it should be a committee of cancer experts that decides which drugs should be offered on the NHS or an independent committee like NICE. ang p rease the va derm wiw OFENSIVE T Evaluation It is very important in a question like this to use economic terms like scarcity, choice, opportunity cost and positive and normative statements. What value judgements do you think the two types of committee would make? Would they come to different conclusions about a drug like Kadcyla? Would it be in the best interests of all NHS potients if choices about which drugs to buy were made by cancer experts? 02:0 al gobaby s prilap to insbutą Speisva od: no ar
Expert Solution
Step 1

Health care economics deals with various factors that converge to influence the health care industry's costs and spending. 

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cost of Medicare
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS