#18 Chua, Patricia Andrea L.

July 25, 2014

2A-MT HW IN HETAR
Chapter 2 Main Features of the Health Care Service and Its Relation with Economic Development
Introduction to Health Economics by Gashaw Andargie
Health economics is said to be the application of economic theories, tools and concepts of
economics as a discipline to the topics of health and health care. It includes the allocation of resources to
improve health as well as the health care system. In addition, it examines how consumers will be able to
maximize the sources we have, knowing they are limited.
In the second part of the chapter, it explained what is health and what are the factors including
health care that may influence this state of health. Health refers to a state either of an individual or a
community. Moreover, poverty, level of education, food intake, clean water and sanitary conditions affect
a person's health. Wider primary health care concepts suggest that broader interventions, including
community empowerment and anti-poverty measures are necessary to promote health.
The book stated 3 different perspectives on the importance of health and the possible roles of the
state promoting it. The three perspectives are as follows. First, health as a right. Health is seen as one of
the most fundamental factor which affect the economy and the government is seen as having a
responsibility to provide the people a clean and green surrounding. The government must allocate the
money equally to the different sectors of the country. Second, health as consumption good. The
government here has no special responsibilities in the promotion of health but leaves the decision as to its
comparative importance to individual consumers. The government must make sure that they are providing
quality and adequate health care materials. Third, health as an investment. Health affects the workforce of
a country, illness may affect the overall production, either through absenteeism or by lowering
productivity through its incapacitating effects.
To sum it all up, being healthy is not only concerned with the physical and mental status of the
individual but social and economic relationships must also be put into consideration. We must always
keep in our minds that it is the people that run the economy and whatever we do affects our economy. If
we are healthy in all the said aspects then there will be a mutual relationship between the people and the
economy. If the people are healthy, then there will be more man power, which said to be the most
important factor, so more man power means that there will be more jobs for the people which in the long
run will have a positive effect in our economy.