Health economics: Theoretical considerations and scope for application in the Indian context

AimsTo familiarize physicians about role of health economics, applications and scope in the Indian context.MethodsReview of existing literature.ResultsHealth economics as a new discipline in India is described. The definition of economics and why economics is important to the physician is discussed in detail. The case of economics in clinical medicine and public health, economic evaluations, characteristics of health care market, market failure, and information asymmetry are discussed. The conceptual basis and types of economic evaluations are described along with an overview of health care financing and studies from the Indian context.ConclusionsAfter describing the challenges in practice of health economics the scope for health economics in India is described.