Chartered Health Economist®(Ch.E® – Health)
Specialist Designation in Health Economics [Course Outline]
Health Economics is an applied field of study that allows for the systematic and rigorous examination of the problems faced in promoting health for all. By applying economic theories of consumer, producer and social choice, health economics aims to understand the behavior of individuals, health care providers, public and private organizations, and governments in decision-making.
Health economics is used to promote healthy lifestyles and positive health outcomes through the study of health care providers, hospitals and clinics, managed care and public health promotion activities. The Chartered Health Economics degree program of the AAFM uses health economic principals to address global issues such as migration, displaced persons, climate change, vaccine access, injuries, obesity and pandemics.
Chartered Health Economists apply the theories of production, efficiency, disparities, competition, and regulation to better inform the public and private sector on the most efficient, cost-effective and equitable course of action. Such research can include the economic evaluation of new technologies, as well as the study of appropriate prices, anti-trust policy, optimal public and private investment and strategic behavior
WHO is currently conducting research on a wide variety of topics, including the impact of health care, health insurance and preventative services on health lifestyles, as well as providing research and advice to governments around the globe to enable a more effective and equitable allocation of resources.
Health Industry Overview
The health care industry is tremendously important to people around the world. This industry comprises of different players including hospitals, doctors, nursing homes, diagnostic laboratories, pharmacies, medical device manufacturers, and other components of the health care system.
The health care industry, or medical industry, is a sector that provides goods and services to treat patients with curative, preventive, rehabilitative or palliative care.
The healthcare industry is composed of establishments devoted to prevention, diagnosis, treatment, and rehabilitation of medical conditions. Such treatment may be through providing products or services, and may be provided privately or publicly.
The modern health care sector is divided into many sub-sectors, and depends on interdisciplinary teams of trained professionals and paraprofessionals to meet health needs of individuals and populations. The health care industry includes establishments ranging from small-town private practices of physicians who employ only one medical assistant to busy inner-city hospitals that provide thousands of diverse jobs.
Healthcare industry is littered with risks and challenges as it is an industry that requires constant innovation under increased regulations.
The health care industry is tremendously important to people around the world as well as to the national economies. It is one of the fastest growing industries in the world. Consuming over 10 percent of gross domestic product (GDP) of most developed nations, a correlation exists between income levels and expenditure on health care in various countries.
For example, some of the large developing economies, such as Brazil, India, China, and Russia, spend less on health care than more industrialized economies, such as the United States or France.
The health care industry also plays an important role as being the largest employer in the global economy, if we add up the number of people working in each sector across the world. In most countries, the employment growth rate of the health industry is higher than that of other industries.
However the healthcare industry as it exists today is highly fragmented and divided among many different companies and different players. No single firm/corporation has large enough share/monopoly of the market to be able to influence the industry’s direction or price levels.
Program Objectives
Health economics uses economic concepts and methods to understand and explain how people make decisions regarding their health behaviour and use of health care. It also provides a framework for thinking about how society should allocate its limited health resources to meet people’s demand/need for health care services, health promotion and prevention.
Health economics is the discipline of economics applied to the topic of health care. Broadly defined, economics concerns how society allocates its resources among alternative uses. Scarcity of these resources provides the foundation of economic theory and from this starting point, three basic questions arise
- What goods and services shall we produce?
- How shall we produce them?
- Who shall receive them?
Economic evaluation is closely related to health economics. Economic evaluation generates evidence-based information, mainly through cost-effectiveness analysis or cost-benefit analysis, to assist and improve decision making of allocating health care resources. All public health decisions have resource implementations and it is critical to consider these when making decisions.
Health economics and economic evaluation are two important fields. Their theoretical perspectives and empirical methodology are essential for health care workers, health and medical professionals, health policy makers and others who wish to pursue a professional career in health.
Role of a Health Economist
What do Health Economists do?
Health economists are professionals who investigate how our resources are used in health care. They also focus on the distribution of resources and the maintenance of occupational health in the health care system. They may work in the public side of health care or they may be employed by privately owned companies.
A health economist will use their skills and the tools learned during their education and career experience to analyze health care and its many subfields. Health economists will evaluate health care policies and appease numerous challenges in the health care field.
- Alternative ways of production and delivery of health care.
- Planning, budgeting, and monitoring of health care.
- Economic evaluation—relating the costs and benefits of alternative ways of delivering health care
This exercise offers a framework for measuring, valuing, and comparing the costs (negative consequences) and benefits (positive consequences) of different health care interventions.
Although all of these elements offer useful insights into the delivery of health care, it is economic evaluation that provides the bulk of health economists’ work and is of most relevance to managers and practitioners.
Health Economists should:
- Develop program objectives, strategies and study methods on health care
- Design and execute research studies to guide effective use of information and resources
- Lead and direct plans to calculate various costs related to health care
- Utilize research programs on health economic topics
- Suggest new health outcomes for treatment and prevention of health issues
- Evaluate current and proposed strategies and interpret findings
- Pro-actively identify market access opportunities for the organization through effective planning and development of financially sound business proposals
- Effectively allocate and deploy resources including people, activities, projects and investment
- Contribute to strategic discussions/market access planning processes to enhance the effectiveness of implementation of corporate strategies
- Communicate economic assessment results to appropriate internal audiences
- Develop and execute health economic issues and methods to reduce cost
- Perform economic analysis and model plans for health-care programs
- Communicate and distribute academic literature, presentations and reports on research findings to update about new issues, solutions and other topics
- Ensure that medical care is provided to all patients in an efficient and effective way
- Provide lectures or educational sessions to educate about health economics
- Manage budget and cost estimates according to plans
- Manage business relationships with all customers including doctors, patients, economists, etc.
Apart from the above role of a Health Economist; they are integral part of ongoing health projects as they help in the following:
- Economic analysis, cash flow, risk analysis and valuation in the health industry.
- Conduct micro-economic analysis applicable to all sectors of the health care supply chain.
- Analyze rates, margins, long-term contracts and market demand forecasts determining the economic viability in health sector.
- How cash flow analysis can be adjusted for risk and uncertainty?
- Understand Economic Parameters.
- Identify the advancement in health care process and technology.
- Identify marketing & pricing of health care products and services.
- Conduct a feasibility study.
- Prepare sensitivity/risk analysis reports.
- Understand selection/design criteria for medical services and facilities.
- Understand break-even analysis and its uses.
Benefits of Program
Decades ago there were limited options for doctors making treatment choices and patients did as they were told. Any values that contributed to the decision making process were implicit and determined by the physician. However, against a background of limited health care resources, an empowered consumer and an increasing array of intervention options there is a need for decisions to be taken more openly and fairly.
The course will give you better insight into the working of the health sector of the country.
- The course helps you in defining the various ways of allocation of the resources available and what are the different effects it will have on the human health and how can the allocation of the resources help in the health of the humans in general.
- This course will also help in the understanding the existing health service system and help in proposing the changes in the system to make it more effective.
- It also helps in understanding the allocation of the various resources in the world at different times and at different places and how has the allocation of the resources helped in improving the health of humans.
- This also helps in understanding how limiting the resources that are used in the human health can affect the human health and what consequences it will have on the various parties interested in the human health resources.
- The course will also help in developing a relation between the service provider of the health services and individual patient from an economic point of view but also keeping in mind the various other aspects of the human behavior and the various risk factors included in providing the health services.
- This course will also help in understanding and applying the various market economics rules in an individual health related case and help in making a better decision by the trainees and the organizations.
- The program allows you to attain Super Specialist Status in “Health Economics” with both the knowledge and skill to perform your duties as a “Health Economist”.
- It highlights criteria used to make economic decisions keeping in perspective reserves classification, production forecasts, and time value of money, inflation, contractual arrangements, risk and uncertainty.
- The key benefit for certification holders is obviously the ability to add a professional designation and post nominal to your list of resume qualifications and it can also be display on your business card, letter head, email signature etc.
- It provides access to one of the top economic and financial professional networks around the globe providing the opportunity to network with charters and members throughout the world.
- The certificate of the Chartered Health Economist® is awarded by the Most Prestigious American Academy of Finance Management (AAFM) and as such, it’s fully recognized in the USA, more than 170 Countries and hundreds of Institutions worldwide.
Key Benefits of the Program
- Demonstrate a systematic understanding of the application of health economics in healthcare decision making
- Critically evaluate current research in health economics for healthcare decision making.
- Apply a critical awareness of current issues in health economic evaluations.
- Implement health economic evaluations in clinical practice scenarios.
- Identify how to construct cash flow projections for your health care projects
- Determine key elements for making investment decisions
Program Ideal For
This program is designed for professionals who work in the energy industry, especially those with a background in energy, petroleum and economics.
The programme is designed for a wide range of professional skill sets, including:
- Economic Research
- Investors and Management Consultants
- Macroeconomic Policy Analysis
- Policy Makers
- Product Research and Development
- Professionals in Consultancy and Engineering
- Professionals in Energy Technology
- Professionals in Real Estate, City Development Agencies and Municipalities
- Professionals in Renewable Energy
- Professionals in Utility or Automotive Companies
- Researchers & Academics
Educational Requirements
Minimum Qualification required to pursue the program:
- For Graduates (Any Stream): Pass Level 1 – Chartered Economist Exam.
- For Post Graduates and above in Economics: Directly pursue the “Chartered Energy Economist” Designation.
Career Opportunities
A degree in economics with a specialization like – “Chartered Energy Economist” in finance, it will open the doors of opportunities in energy sector to you. Employment opportunities for candidates in Energy Economics are traditionally very good.
Having Chartered Energy Certificate, you could qualify for jobs like:
- Analyst for the Department of Energy
- Policy and Evaluation Analyst for National Energy Grid
- Energy Industry Analyst for the Energy Regulatory Commission
- Energy Advisor for Non-governmental Organization
- Energy Specialist for the Department of Renewable Energy
- Program Support Specialist for Bureau of Energy Management
- Residential Energy Specialist for Community Associations
Important skills required for Managerial Economist
Key Skills and Proficiencies of a Managerial Economist
- Analytical Skills: Economists must be able to review data in detail, observe patterns, perform advanced calculations, and draw logical conclusions.
- Critical-thinking Skills: Economists must be able to use logic and reasoning to solve complex problems. For instance, they might identify how economic trends may affect an organization.
- Speaking Skills: Economists must be able to explain their work to others and they often give presentations and explain reports to clients who may not have a background in economics.
- Writing Skills: Economists must be able to present their findings clearly. Many economists prepare reports for colleagues or clients; others write for publication in journals or for news media.
- Expert in mathematical knowledge of algebra, geometry, statistics, calculus, and their applications
- Ability to undertake researches and effectively identifying the problems
- Experienced in managing and organizing the overall energy industry
- Prepare and maintain all the reports, documents, and statistics
- Knowledge about using various computer applications required for maintaining the financial records
- Knowledge about laws, government regulations, executive orders, and court procedures
Salary Prospect of Financial Economist
Economists earned a median annual salary of $101,050 in 2016, according to the U.S. Bureau of Labor Statistics. On the low end, economists earned a 25th percentile salary of $73,890, meaning 75 percent earned more than this amount. The 75th percentile salary is $138,120, meaning 25 percent earn more. In 2016, 21,300 people were employed in the U.S. as economists.
The median annual wages for economists in the top industries in which they work are as follows:
| Sector | Salary |
|---|---|
| Energy Auditor | $234,000 |
| Technical Consultants | $242,596 |
| Pricing Analyst | $266,990 |
| Energy Manager | $621,000 |
| Senior Process Engineer | $1,147,826 |
| Energy Management Specialist | $1,700,000 |
Curriculum of Chartered Energy Economist
The curriculum of Chartered Energy Economist consists of in-depth study of energy economics, which is based on the core concepts of the energy demand; energy demand forecasting; and economics of the energy industry. Investigate & explore the moral and individual dimensions of energy economics and ethical viewpoint of energy industry and understand the moral responsibilities as a Chartered Energy Economist.
Energy Economics and Energy Balance
For a professional like a Chartered Energy Economist; an understanding of concepts of energy economics is of prime importance. This part of course content would enable the Chartered Energy Economist to get a basic understanding of the concepts of the energy economics and multi-dimensions of energy interactions. This part of course would also cover the energy basics and energy system.
This part of course would enable the Economics professionals in acquainting with the energy information and energy accounting framework. The objective of this part is to enable a Chartered Energy Economist to understand the accounting of traditional energies; special treatment for the energy balance; analysis of energy balance information and presentation of energy accounting information.
Energy Demand and Forecasting and Management
For a professional like a Chartered Energy Economist; an understanding of the energy demand analysis and energy demand decisions is the crucial aspect of the study. This part of course content would enable the Chartered Energy Economist to get a better understanding about the economic foundation of energy demand and alternative approach for energy demand analysis. This part of course would also cover the energy demand analysis using the econometric approach.
The part of course would enable the Economics professionals in acquainting with disaggregation of demand & sectoral energy accounting and analysis at the sectoral level. The objective of this part is to enable a Chartered Energy Economist to understand the energy demand forecasting. This part of course would focus on the energy demand management and energy load management and energy efficiency improvements and energy conservation.
Energy Supply and Non-renewable Resource Supply
For a Chartered Energy Economist; know-how of the energy supply is the crucial aspect of the study. This part of course would enable the Chartered Energy Economist to get a better understanding about the fossil fuel supply; field development; oil production; economics of fossil fuel production and resource rent. This part of course would also cover the supply forecasting.
The part of course would enable the Economics professionals in foundation of non-renewable resource supply. The objective of this part is to enable a Chartered Energy Economist to understand the depletion dimension. It also enables Economist to assess the simple model of extraction of exhaustible resources.
Economics of Electric Supply
For a Chartered Energy Economist; know-how of the electric supply is the crucial aspect of the study. This part of course would enable the Chartered Energy Economist to get a better understanding about the basic concepts of electric systems and alternative options to electricity generation. This part of course would also cover the economic dispatch and unit commitment.
The part of course would enable the Economics professionals in investment decisions in the power sector and electricity resource planning. The objective of this part is to enable a Chartered Energy Economist to understand the importance of alternative and renewable energy for electricity generation. It also enables Economist to understand the drivers of renewable energy and the economics of renewable energy supply and the economics of bio-fuels.
Energy Market and Energy Pricing & Taxation
For a Chartered Energy Economist; understanding of the energy market; energy pricing and energy taxation is the crucial aspect of the study. This part of course would enable the Chartered Energy Economist to get a better understanding about the basic competitive energy market and extension of the basic model. This part of course would also cover the government intervention and the role of government in the energy sector.
The part of course would enable the Economics professionals to understand the basic energy pricing model and tradability of energy products and opportunity cost. The objective of this part is to enable a Chartered Energy Economist to understand the peak & off-peak pricing; energy taxes and subsidies; implications of traditional energies and informal sector in developing economics for energy pricing.
International Oil Market
For a Chartered Energy Economist it is crucial to understand the basics of international oil market. This part of course would enable to get a better understanding about the developments in the oil industry. This part of course would also cover the analysis of changes in the oil market.
Market for Natural Gas and Coal
For a Chartered Energy Economist it is crucial to understand the natural gas market and the features of natural gas. This part of course would enable to get a better understanding about the status of the natural gas market and economics of gas transportation. This part of course would also cover the gas pricing and market of natural gas market of developing countries. This part of course focuses of the coal market and changes & technological advances and the future of coal.
Analysis of Energy Systems and Global Energy Challenges
For a Chartered Energy Economist it is important to know about the evolution of energy systems and alternative modeling approaches of energy economy interactions. This part of course would enable Energy Economist to get a better understanding about the global energy challenges and grand energy transitions. This part of course would also cover the issues facing resources in rich and poor countries.
Apart from the above mentioned course content, AAFM suggest candidate/students to go beyond the course and study the following topics for better understandings of the certification course. These topics are:
- Micro-economics
- Macro-economics
- Industrial Economics
- Econometrics
Fee for Chartered Energy Economist
| Head | Resident Student | Overseas Student |
|---|---|---|
| Registration Fees$ | Rs.29,000 + GST | USD1000 |
| Registration Renewal | Rs.10,000 + GST | USD100 |
| Examination Fee–Chartered Economist®% | Rs.3,000 + GST | USD100 |
| Examination Fee–Chartered Health Economist® | Rs.10,000 + GST | USD100 |
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