London School of Hygiene & Tropical Medicine

The module introduces key economic concepts: making choices within scarce resources, efficiency, equity, markets, elasticity of demand, costing, production, marginal analysis, and opportunity cost. These are applied to issues concerned with the finance and delivery of health services. It examines the conditions under which normal markets work, and why they often 'fail' in health care. It also considers the principles and application of economic evaluation in health care.

Intended learning outcomes

Upon successful completion of the module, a student will be able to:

• Analyse the determinants of demand, supply and costs of production.
• Apply the concepts of efficiency, equity, elasticity, marginal analysis and opportunity cost.
• Explain the basic market model, market failure, and the roles and limitations of markets (and governments) in health care.
• Explain the functions of health financing.
• Explain the principles of economic evaluation as applied to healthcare.

Session Content

The module is expected to cover the following topics:

• Introduction of key economic concepts.
• Making choices within scarce resources.
• Efficiency, equity, elasticity of demand, costing, production, marginal analysis, and opportunity cost.
• Conditions under which normal markets and insurance markets work, and why they often fail in health care.
• Health care financing and universal health coverage.
• Principles and application of economic evaluation in health care.

Mode of delivery

This module is delivered predominantly face-to-face. Where specific teaching methods (lectures, seminars, discussion groups) are noted in this module specification these will be delivered by predominantly face-to-face sessions. There will be a combination of live and interactive activities (synchronous learning) as well as self-directed study (asynchronous learning).

Assessment

The assessment for this module has been designed to measure student learning against the module intended learning outcomes (ILOs) as listed above. Formative assessment methods may be used to measure students’ progress. The grade for summative assessment(s) only will go towards the overall award GPA. 

There will be a formative assessment, administered at mid-term (reading week) towards the end-of-term as well as an end of module summative assessment. 

The summative assessment for this module will be timed, open-book assessment in week 10 of Term 1.

Credits

• CATS: 10
• ECTS: 5

Module specification

For full information regarding this module please see the module specification.

Please note: information based on the 2024-25 module specification subject to change for 2025-26 entry.