Health economics is a branch of economics which deals with issues related to efficiency, effectiveness, value and behavior in the production and consumption of health and healthcare.
Health economics applies the principles of economics to address the problems of health and health care. It uses economic concepts and methods to understand and explain how people make decisions regarding their health behaviors 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.