Discussion paper - Why Physiotherapy Needs Economics

Issues relating to limited healthcare resources are relevant to all health professionals. Allocation of such resources is increasingly linked to evidence based practice. Thus, involvement in decision-making by health professionals will allow for accurate and meaningful interpretation of clinical results and evidence. Inherent in resource allocation are issues of economic origin. An understanding of the basics of economic evaluation and costing will enhance health professionals' participation in service development and funding procurement. The types of economic evaluation utilised in health care are cost minimisation analysis, cost effectiveness analysis, cost utility analysis and cost benefit analysis. Each type of evaluation measures the costs and consequences of health care programmes in a unique way.