Growth Potential of the Industrial Health Economy

Interview with Rabea Knorr, Head of the Federation of German Industries (BDI)

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The Roadmap to
Sustainable Finance in Health

Recommendations to the G20 and G7 countries

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The Paradigm Shift: Recognizing
Health as an Investment

Expert Webinar with Prof. Dr. Dennis Ostwald & Dr. Sandra Zimmermann

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Health Economics Glossary

Definitions and explanations from the field of health economics

Health Economics Research

Well-being, resilience, prosperity: health is an investment, not a cost. Yet all too often discussions on healthcare systems fail to recognize the value of a healthy population – for citizens, societies, and economies. Our health economics research makes the importance of health investments measurable throughout the world.

The United Nations has set 17 Sustainable Development Goals on its 2030 Agenda. From ending poverty to building resilient infrastructures, achieving each of these goals is contingent on the advancement of global health systems. WifOR strives to empower business, politics, and society to make evidence-based decisions on health using empirical and comparable data. Our vision: better health for all.

Health Economics Research: WifOR’s Approach

What is Health Economics?

Health Economics is a field of economics that focuses on the analysis and evaluation of health systems and health services. It examines how a health system’s limited time and monetary resources should be allocated in order to ensure the best possible medical care and at the same time financial viability.

What are the tasks of Health Economics?

The main tasks of Health Economics are diverse and include:

1.   The development of measurement tools and models to evaluate health services
The tools of Health Economics make it possible to objectively evaluate health services and compare them with each other, for example by using key figures such as quality-adjusted life years (QALYs) or mortality rates.

2.   Health Economic evaluation of health services
Health Economics studies the efficiency of health-related interventions. This includes the analysis of benefits and costs to enable health insurers to make informed decisions about financing or refusing health services.

3.   Analysis of distribution and financing in the health sector
Health economists analyze how financial resources should best be allocated in the health sector. This includes evaluating the allocation of resources to ensure that it is fair and effective. The aim is to reduce social as well as health inequalities.

What is Health Economics Research?

Health Economics analyzes the importance of health and the value of health interventions for society and the economy. As the backbone of human well-being and socioeconomic prosperity, health is one of the most critical investments we can make – from medical innovation to the jobs supported by the Health Economy.

At WifOR, we envisage a sustainable development of global society through evidence-based decision-making in politics and business alike. Our mission in the field of health economics is to make the value of investments in health measurable on a global scale. At a macro level, our health economics research analyzes the relationship between health and society for regions, countries, and in an international context. From a micro perspective, research in health assesses the burden of disease and the social impact medical innovations have for people and economies.

Hatice Küçük Beton

Executive Director The G20 Health & Development Partnership

The insight provided by WifOR has been hugely helpful for our research and advocacy, informing our advocacy work on health metrics and financing. WifOR has strengthened the tools we can use to shift the paradigm of viewing health as a cost, to seeing it as an investment.

Cristobal Thompson

Executive Director AMIIF

I have learned a lot from the WifOR Institute over the years, especially in how to look at health investments in a holistic way.

Claire Skentelbery

Director General EuropaBio

EuropaBio worked with WifOR to establish economic indicators for biotechnology and it was an excellent process of research and industry-oriented outcomes. It is a valuable part of our work to represent biotechnology in Europe.

Health Economics Research: Regional, National & International Context

Our research in health seeks to foster a paradigm shift towards recognizing health as an investment in human well-being, sustainable economic growth, and progressive innovation. At regional, national, and international levels, health economics research adopts a macroeconomic approach to analyzing health systems. It addresses questions such as: how does health affect the economy? What is the significance of health from a societal perspective? And what do positive health interventions mean for citizens?

WifOR has created the economic policy tool Health Economy Reporting (HER) to quantify the value of the Health Economy sector and to measure the impact of investments in health. Initially developed for the German Federal Ministry for Economic Affairs and Climate Action, Health Economy Reporting has now been used for over a decade to:

Measure the size, impact, and significance of the Health Economy and its subsectors (Industrial Health Economy, Service and Support, and Healthcare Economy)
Enable comparison between different sectors in the wider economy, health economies between countries, and contribution to political targets – such as the United Nations’ Sustainable Development Goals
Identify potential for progress in health, make smart health investments leading to positive health interventions, and generate a Return on Investment (ROI)

Health Economics Research: Medical Innovations

At a product level, our health economics research analyzes the Burden of Disease (BoD) and the Social Impact (SI) affected by medical innovations. Medical innovations range from a breakthrough treatment to cure a specific disease or the development of a new vaccine to procedural interventions promoting preventative health measures.

By making Social Impact visible, our health economics research illustrates the value innovations in medical products and procedures have. Whether focusing on the improvements to quality of life or the impact on socioeconomic resilience, our models can offer a deep dive into the impact of specific innovations within selected countries or a holistic global study incorporating a portfolio of medical innovations.

How does WifOR’s Health Economics Research support organizations, industries, and governments?

Despite widespread public recognition for the critical significance of health, when it comes to investing in healthcare sysmtems decision-makers often view it as simply another cost. WifOR’s health economics research is shifting the paradigm by measuring the value of health to the well-being of populations, societal wealth, and resilient economic prosperity.

From national budget allocation to R&D in medical technology, investing in health has been empirically shown to not only provide a valuable Return on Investment (ROI), but also be a driver of prosperity. Shining a light on the value of positive health interventions acts as a guide for organizations (companies, governments, associations, NGOs) and industries to prioritize health by providing the data required to invest smartly based on long-term thinking. Through scientific analysis and evidence-based data, our health economics research acts as a guide for effective investments in healthcare and offers a common language for business, politics, and public stakeholders.