Experts say health economists can be key to enhancing the efficiency of local hospitals and health networks. 

A new study shows that involving health economists more directly in decision-making processes could lead to improved solutions for persistent issues such as Emergency Department (ED) ramping.

“It takes a healthy population to build a thriving economy, and governments have long been challenged by how best to provide care for people and deliver more sustainable health systems and solutions,” says Professor Jonathan Karnon, from Flinders University’s College of Medicine and Public Health. 

He said health economists can help most when they “are located at hospital sites rather than sitting in ivory towers”. 

Over two years, health economists from Flinders University were integrated within the South Adelaide Local Health Network (SALHN), a move that has revealed substantial benefits. 

Through collaboration with clinicians, the economists utilised local health systems data alongside published data to undertake economic evaluations. 

These evaluations informed the development of new interventions, the prioritisation of clinical areas for improvement, and the implementation of significant new interventions aimed at tackling issues such as ED ramping.

“Our general approach involved the use of local health systems data and published data and engagement with local clinicians to interpret this information in the local context,” Professor Karnon explained.

With Australia spending $180 billion annually on healthcare services, the research emphasises the critical need for an innovative approach to healthcare decision-making. 

By embedding academic health economists directly into healthcare settings, the study illustrates a path towards more efficient and effective healthcare service provision, with a focus on practical solutions to long-standing challenges.

“We want to see education and economist-in-residence programs whereby researchers actively engage with the health service to ultimately impact on patients through the best possible evidence informing health services decisions,” Professor Karnon said. 

The full study is accessible here.