What does health economics study?

Health economics primarily focuses on the allocation of resources in the healthcare sector and how these decisions impact health outcomes. The core principle of health economics is to understand how limited resources can be managed efficiently to improve health and ensure that individuals and populations receive the best possible care.

This field evaluates various factors such as the costs of healthcare interventions, their effectiveness, and the overall efficiency of healthcare delivery systems. By analyzing these aspects, health economists can assess how investments in certain health programs or technologies influence health outcomes, making it possible to identify cost-effective strategies to improve public health.

While patient satisfaction, clinical trials, and innovations in medical technology are significant areas of healthcare, they don't encompass the broader economic concepts of resource allocation and its direct effects on health outcomes, which is the essence of what health economics studies.