Module code: MANM057

Module provider

Surrey Business School

Module Leader


Number of Credits


ECTS Credits



FHEQ Level 7

JACs code


Module cap (Maximum number of students)


Module Availability

Semester 2

Overall student workload

Independent Study Hours: 117

Lecture Hours: 22

Seminar Hours: 11

Assessment pattern

Assessment type Unit of assessment Weighting
Coursework 3500 WORD ESSAY 100

Alternative Assessment

Not applicable

Prerequisites / Co-requisites


Module overview

This module is designed to introduce students to concepts of health economics. Economics is the study of how society makes choices about what output is to be produced, by what means and for whom: in other words, it is the study of how society allocates its scarce resources among competing alternatives. This notion of scarcity is as relevant in the health sector as it is elsewhere since, whatever the level of expenditure on health care, there will always be unmet demand. Moreover, it is important that those resources used in the health sector are applied in the best ways possible. As a result, economic terms such as cost containment and cost effectiveness, competition and health market, health outcomes and prioritising services, are increasingly becoming the language of health service managers and others. The module will explore the meaning of these and other terms. It will examine the economists' "toolkit", the way in which it can be used in the process of policy development, and its limitations.

Module aims

To ensure that students have a comprehensive grounding in health economics and are able to use its tools and techniques to improve their understanding, analysis and decision making techniques in health care settings.

Learning outcomes

Attributes Developed
1 Understand microeconomic theories of supply and demand
2 Be able to analyse the macroeconomic framework of resource allocation
3 Be familiar with the incentives associated with different ways of financing health care, nationally and locally, and the possible effects of each
4 Be able to use the different techniques of economic evaluation
5 Be able to measure and value costs and effects of health care interventions
6 Have an in-depth knowledge of the application of economics to research in the evaluation of care
7 Understand and analyse different issues related to commissioning services

Attributes Developed

C - Cognitive/analytical

K - Subject knowledge

T - Transferable skills

P - Professional/Practical skills

Module content

Using demand theory in health policy
Theory and practice of economic evaluation
Markets & market failure in health care, alternatives to markets
Incentives for efficiency in medical practice
Equity in health and health care
Measuring and valuing costs
Measuring and valuing health and other effects of health
Design an economic evaluation
Economics and decision analysis
Programme budgeting and marginal analysis
Option appraisal

Methods of Teaching / Learning

The teaching and learning strategy is designed to facilitate an understanding of aspects the complex management and administrative demands of a modern health system and in particular the demands for effective and efficient management. The teaching and learning methods include:

self directed reading

Assessment Strategy

The assessment strategy is designed to provide students with the opportunity to demonstrate

The actual assessment questions are designed to allow students the opportunity to demonstrate achievement of 7/9 of the learning outcomes for this module. The assessment method (coursework) allows students the opportunity to reflect critically on their learning and the materials, and to prepare considered and detailed answers to the questions. In particular it requires students to work within a format that fits best with what they have or will encounter in their professional careers.

Thus, the summative assessment for this module consists of:

1 x 3,500 word essay answering a two-part question of equal weight.

The assessment will be submitted one week after the last lecture and the assignment is available from the first week of the semester. The deadline is coordinated with the other module convenors to ensure that students have enough time to complete their assignments, yet scheduled to avoid students missing lectures to complete assessments for other modules.

Formative assessment and feedback

Students will receive verbal, formative feedback during weekly tutorials and written, formative feedback on any of the optional written tutorial answers that are submitted.

Reading list


Please note that the information detailed within this record is accurate at the time of publishing and may be subject to change. This record contains information for the most up to date version of the programme / module for the 2017/8 academic year.