Q1. Define the term 'opportunity cost'.2. Explain why the NHS has to make'tough choices' about what itoffers patients.3. Discuss, from an economicviewpoint, whether it should bea committee of cancer expertsthat decides which drugs shouldbe offered on the NHS or anindependent cormittee like NICE. Unit 3Data Response QuestionThe National Health Service faces tough choicesPoliticians and health officials mustbe more honest with the public aboutthe tough choices facing the NationalHealth Service (NHS), according to SirAndrew Dillon, the head of NICE (theNational Institute for Health and CareExcellence). It is the responsibility ofNICE to decide which drugs are valuefor money and can be prescribed bythe NHS and which drugs will not beavailable to NHS patients.Andrew said: The NHS has to exercisechoices, sometimes, in order to ensureits resources are allocated as fairly aspossible. The NHS spends £13 billiona year on pharmaceuticals, about12 per cent of its total budget.It was reported this month thatNICE ruled that two cancer drugs- Zytiga® for prostate cancer andKadcyla® for breast cancer - werenot cost-effective for the NHS, thelatest expensive cancer medicines tobe rejected by the agency. Roche, theSwiss pharmaceuticals company, saidthe refusal to back its Kadcyla drug,which typically extends life by about sixmonths at a cost of £90 000, showedthat the UK's drug evaluation systemwas 'no longer fit for purpose'.It has been suggested that the price ofnew medicines will continue rising -particularly for cancer - because drugcompanies expect to make a profiton their heavy investment in researchand development. Sir Andrew pointedout that, whatever the funding forthe NHS, there will always be an'opportunity cost'. Choosing to expandtreatment in one area meant that'something else cannot be done.Source: adapted from the Financial Times23.8.2014, All Rights Reserved.161. Define the term 'opportunity cost'.2. Explain why the NHS has to make'tough choices' about what itoffers patients.3. Discuss, from an economicviewpoint, whether it should bea committee of cancer expertsthat decides which drugs shouldbe offered on the NHS or anindependent committee like NICE.ang prease the vadermwiw OFENSIVE TEvaluationIt is very important in a question like thisto use economic terms like scarcity, choice,opportunity cost and positive and normativestatements. What value judgements doyou think the two types of committeewould make? Would they come to differentconclusions about a drug like Kadcyla?Would it be in the best interests of all NHSpotients if choices about which drugs to buywere made by cancer experts?02:0al gobaby s prilap to insbutą Speisva od:no ar

Health care economics deals with various factors that converge to influence the health care…

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.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter16: Information, Risk, And Insurance

Section: Chapter Questions

Problem 2SCQ: Why is there asymmetric information in the labor market? What signals can an employer look for that...

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