What is the primary goal of healthcare economics?

The primary goal of healthcare economics is to allocate limited resources efficiently. This discipline focuses on understanding how healthcare resources are produced, distributed, and consumed, aiming to optimize the use of these limited resources to achieve the best possible health outcomes. Given that resources such as time, money, and medical supplies are finite, healthcare economics seeks to analyze the trade-offs involved in decision-making processes. By applying economic principles, policymakers and healthcare organizations can identify the most effective ways to allocate resources to maximize the overall health benefit to the population while minimizing waste and inefficiency.

In contrast, increasing healthcare expenditures does not inherently lead to better health outcomes; it could, in fact, result in inefficiencies if not managed wisely. Eliminating all healthcare costs is unrealistic and impractical, as every component of healthcare requires funding and resources. Lastly, while providing universal health coverage is a significant goal of many healthcare systems, it is more a policy objective than a primary economic goal. Efficient resource allocation is foundational to achieving this and other broader objectives in healthcare.