Health economics is a field of study that is concerned with the functions of healthcare systems and health-affecting behavior. Health economics looks at issues of value and behaviour and studies issues related to the efficient utilization of scarce economic resources (e.g., human resource, materials, and financial resources) to improve health and healthcare delivery. This includes resource allocation within the economy to the health sector and within the healthcare system to different activities and individuals. Health economics is a way of thinking about resources, priorities, and benefits from a systemic (macroeconomic) level through to a treatment or individual specific (microeconomic) level.

The purpose of this module is to introduce students to fundamental concepts of economics as it is applied to healthcare, with emphasis on innovation.