A Guide for Aspiring Professionals.
Health economics is an exciting and impactful field, sitting at the intersection of healthcare and economics. Imagine a world where healthcare decisions are not just based on what works but also on what delivers the best value for the resources available. Health economists are the ones who make that happen, ensuring that healthcare systems are efficient, policies are grounded in evidence, and patients truly benefit. Whether you’re an aspiring professional, a healthcare expert looking to transition into health economics, or someone working in a non-health economist role in the pharmaceutical industry, this guide will help you understand the opportunities and pathways in this growing field.
What Is Health Economics?
Health economics involves analysing healthcare systems, policies, and interventions to improve outcomes, allocate resources efficiently, and assess value. For example, a health economist might evaluate the cost-effectiveness of a new cancer drug compared to existing treatments. By analysing clinical trial data and projecting long-term outcomes, they help determine whether the drug provides enough benefit to justify its price, influencing decisions by both healthcare providers and policymakers.
It answers key questions like: What is the most cost-effective way to treat a disease? How should limited healthcare resources be distributed? How can healthcare systems balance cost, quality, and access? Key concepts include cost-effectiveness analysis, quality-adjusted life years (QALYs), and resource allocation—all critical in shaping healthcare decisions globally.
What Do Health Economists Do?
Health economists work in diverse roles, often specialising in specific areas of healthcare. They analyse the cost-effectiveness of treatments, drugs, and interventions to help governments and healthcare providers decide which services offer the best value for money. They support pharmaceutical companies in pricing new drugs and securing reimbursement approvals by preparing health technology assessment (HTA) submissions to agencies like NICE in the UK or IQWiG in Germany.
HTA plays a crucial role in healthcare decision-making by systematically evaluating the clinical and economic value of medical technologies. This process helps policymakers, insurers, and healthcare providers determine which treatments offer the best outcomes relative to their cost, ensuring efficient resource allocation in healthcare systems. Health economists also assess the economic impact of healthcare policies, advising governments on resource allocation and public health strategies.
They use tools like Excel, Excel VBA, R, or Stata to build economic models and analyse healthcare data, predicting costs, outcomes, and budget impacts of healthcare decisions. In global health, they address health disparities and evaluate cost-effective interventions in low- and middle-income countries, often collaborating with organisations like the WHO.
Why Pursue a Career in Health Economics?
Healthcare systems worldwide face increasing pressure to manage costs while improving outcomes. The challenges are immense. Rising costs of cutting-edge medical technologies place a significant burden on budgets. Ageing populations demand more healthcare resources, while disparities in access to care leave many underserved. On top of this, global health crises expose inefficiencies in current systems and demand rapid, cost-effective solutions. Health economists are at the forefront of addressing these challenges, often balancing cost-effectiveness with the imperative to improve patient outcomes.
The rise of new technologies, ageing populations, and global health challenges make health economists indispensable. This is a field where you can make a tangible difference, influencing decisions that affect millions of lives. Whether it’s ensuring access to a life-saving drug or designing a public health intervention, your work will have real-world impact. Health economists are also well-compensated, particularly in pharmaceuticals or consulting. Entry-level roles often start at €55,000 to €75,000 annually, while senior professionals can earn over €140,000.
Who Should Consider Health Economics?
If you’re a student or recent graduate in economics, public health, or a related field, health economics offers a rewarding career path. Build your foundation with courses in microeconomics, biostatistics, and healthcare systems. Healthcare workers, such as clinicians or public health experts, often bring valuable insights to health economics. By pursuing a master’s degree in health economics or public health with a focus on economic evaluation, you can transition into this field. If you’re already in the pharmaceutical industry, transitioning to health economics can open doors to roles in market access, HTA submissions, or outcomes research. Upskilling through short courses or certifications can help you make the leap.
How to Get Started
Education is key to becoming a health economist. Start with an undergraduate degree in economics or a related field, then pursue one of the numerous master’s programmes in health economics offered across Europe. Examples include programmes at the London School of Economics, the University of York, and Erasmus University Rotterdam, which are renowned for their strong focus on health economics and policy.
Many health economist roles have specific educational requirements. For example, analyst positions often require a bachelor’s degree with a relevant master’s qualification, while manager and director roles frequently expect candidates to hold a master’s degree or PhD. Analytical skills are critical, so proficiency in tools like Excel, Excel VBA, R, Stata, or SAS for data analysis and modelling is essential. Equally important are soft skills such as communication and teamwork. Health economists frequently collaborate with multidisciplinary teams, whether it’s preparing an HTA submission or consulting with clinical researchers. The ability to explain complex economic concepts to non-specialist audiences is invaluable, ensuring that decisions are well-informed and widely understood. Gaining experience through internships with healthcare organisations, government agencies, or pharmaceutical companies is another important step. Entry-level roles like health economics analyst or research assistant can provide valuable experience. For more details on health economics master’s programmes, visit this guide. For further insights into education requirements for various roles, check this blog post.
Career Pathways in Health Economics
In the pharmaceutical industry, roles in market access, pricing, and health technology assessment are common. Market access professionals ensure that new treatments are positioned effectively within healthcare systems, considering regulatory and reimbursement landscapes. Pricing specialists analyse economic data to set competitive yet sustainable prices for new drugs.
Health technology assessment experts evaluate the clinical and economic benefits of treatments, preparing detailed submissions for approval by regulatory bodies such as NICE or IQWiG. Health economists work closely with clinical teams to ensure new drugs demonstrate value and secure market approvals. Consulting firms provide economic insights to healthcare providers, governments, and pharmaceutical companies. These roles often offer diverse projects and opportunities for rapid career growth. In government, health economists support policy development, resource allocation, health insurance analysis, and healthcare financing strategies, focusing on improving healthcare efficiency and outcomes. Academic roles involve teaching health economics or contributing to research on healthcare systems and interventions, often requiring a PhD.
Conclusion: Why Health Economics Matters
Health economics is more than a career; it’s a chance to make a difference. Whether you’re helping a government design cost-effective policies or supporting a pharmaceutical company in bringing life-saving drugs to market, your work will have real-world impact. If you’re ready to explore this dynamic field, start building your skills and network today. The demand for health economists is growing, and there’s no better time to make your mark.
