Page 88 - GHES-3-3

Global Health Economics and
Sustainability
Global health care during COVID-19

products or results are equivalent, for example, comparing These professionals must not only be skilled in system
prices of the same antihypertensive drug from different management but also well-versed in financial regulation
manufacturers and choosing the most affordable option. and resource allocation. One of the most challenging
Cost-effectiveness is associated with different clinical questions in health care is: “How should the funding
interventions with common outcomes, for instance, of the healthcare system be managed?” Adherence to
evaluating two weight loss strategies where the less the basic rules of health economics, financial strategy,
costly option is preferred if outcomes are similar. Cost– and resource allocation decision-making are essential
benefit analysis is the benchmark for cost-effectiveness criteria for maintaining a functional and sustainable
and measures quality-adjusted life years to assess how healthcare system. Health policies are often complex due
interventions improve both the length and quality of to the interdependence with other industries, especially
life. It is often regarded as a gold standard in evaluating stakeholders. As such, ongoing collaboration between
long-term health benefits (Munshi, 2022). Cost advantage healthcare management and policy experts is vital. Global
means better health care in an affordable range. health policy is relatively more complex than local or
regional policies. The healthcare system consists of three
The healthcare system is constantly evolving and main components: inventory, infrastructure, and health
becoming increasingly complex. Management capabilities care. These components are subjected to supply and demand
are essential for effective system planning and organization, dynamics, which are effectively managed by experienced
particularly in terms of financial oversight and resource professionals. Health insurance adds another layer of
allocation. While countries allocate a calculated percentage financial complexity. Its structure and implementation
of their GDP to the health sector, funds from the government vary significantly depending on national policies and
or stakeholders are often inadequate. Fundamental and the affiliations of insurers. In addition to handling
advanced knowledge of economic principles is essential personnel costs, executives are responsible for managing
for making cost-effective decisions in public health. supply chains, fiscal coordination with stakeholders, and
Healthcare administration is a challenging domain, where adherence to government policies (Munshi, 2023).
managers must manage the allocation of health finance.
Healthcare policymakers at regional, national, and global The World Health Organization (WHO) plays a crucial
levels must be equipped with information and experience role in global public health, yet it faces financial challenges,
in both public health and current economic conditions. especially amidst global economic turmoil. Although
Corporate leaders and healthcare managers should not member states endorse initiatives like scheduling emergency
only have a thorough understanding of health economics programs for health and financial crises, they have often
but also the insight or efficacy to allocate funds among failed to increase their financial contributions to the WHO.
stakeholders and manage economic instability. Addressing This lack of support undermines the organization’s autonomy
the intricate financial challenges within healthcare and operational efficiency. Despite the crisis, WHO receives
institutions requires professional economic expertise, with considerable voluntary support from both state and non-
an emphasis on patient-centered approaches that promote state actors. However, overreliance on voluntary funding
healthy lifestyles while ensuring efficient fund regulation. from external sponsors has, in some cases, diminished
In commercial healthcare units (like private hospitals, its autonomy and global leadership capacity. Economic
insurance companies, etc.), there is often pressure from reform requires continuous evolution aimed at improving
funders or shareholders to meet profit targets. In contrast, transparency, accountability, and effectiveness. This is
non-profit healthcare organizations typically reinvest funds related to the political economy and WHO leadership
into their operations and community services. Regardless in international health governance. The WHO Funding
of the model, effective financial knowledge is essential Reform Protocol emphasizes the importance of economic
for medical providers, administrators, and policymakers predictability, flexibility, transparency, and autonomy.
Nonetheless, the integrity and plasticity of member state
working within the healthcare system. Opportunity cost contributions remain a controversial issue and a concern
is a fundamental principle of healthcare financing where for proper autonomy. As a progressive and cutting-edge
the least amount of money is spent to obtain the greatest approach, WHO’s Funding Statement continuously works
possible health benefit (Munshi, 2023). to improve the effectiveness of the use of resources. Apart
Local, national, and international healthcare systems from progress, WHO has received significant support from
are inherently complex. The system consists primarily of sponsors for funding large-scale global programs, essentially
clinicians and two groups of administrative staff. Among diminishing organizational autonomy and global leadership
them, administrative professionals primarily manage the (Reddy et al., 2018). According to WHO, the Economic
operational and financial aspects of the healthcare sector. Evaluation Analysis (EEA) team helps various countries

Volume 3 Issue 3 (2025) 80 https://doi.org/10.36922/ghes.8492