Essentials of health economics: part I (continued)-what is economics?

In applying economics to problems of health care economists try to compare different patterns of use of resources with the various patterns of benefits which arise. This costing is never a simple and value-free exercise. The principal ingredient in costing is asking the right question. Because of the squeeze on NHS resources of late the question: Can you cost this please ? is posed more frequently by doctors to accountants and economists. Although greater awareness of costs can create a better climate for increasing efficiency, the question is unfortunately often posed without a real understanding either of the nature of the cost or of the problem (the two are, in practice, inextricably linked). Such a question ought always to be answered by, Why? because unless the nature of the problem to be solved is understood the wrong cost figure may well be calculated.