Health economics

Health economics is a branch of economics concerned with the formal
comparison of costs and consequences of health care. One of the seminal
papers in this field was written by Kenneth Arrow, who in the 1970s applied
a rule of diminishing returns to predict that the cost per cancer death
prevented by the sixth in a series of six repeated fecal occult blood tests
exceeded one million dollars.

Health economics uses mathematical models to synthesise data from
biostatistics and epidemiology for support of medical decision making.

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