Public healthcare agencies - whether public health departments, Medi-Cal managed care plans, hospitals, or community health centers - fill critical gaps in our healthcare system that the clinical services do not address. Health Economics can help public healthcare agencies understand the needs of vulnerable populations, make resource decisions that consider both the costs and outcomes, and evaluate and report the return on investment from programs and interventions. Specifically, health economics can assist public healthcare agencies create value and trust by:
Public healthcare agencies need to assess the health and healthcare system for the entire population - including those who never seek care - to identify unmet needs, disparities, and opportunities for prevention. Health economics provides a framework for conducting a comprehensive health needs assessment that goes beyond the traditional community health needs assessment that is currently being conducted by public health departments, Medi-Calmanaged care plans, hospitals, and community health centers.
With limited budgets and unlimited needs, public agencies must decide how best to use their resources to best meet the needs of the public. Having a transparent system that considers the costs and outcomes and yet reflects the values of the community will help maintain the public’s trust in public healthcare agencies. Multicriteria decision making frameworks can provide a structure for decision making that will reflect the community’s priorities.
Commercial incentives often drive healthcare toward more services, not necessarily better outcomes. Public healthcare agencies must rigorously evaluate whether programs deliver value - improving health at reasonable cost - and adjust accordingly. This stewardship role protects public resources and maximizes community benefit.
These three functions - comprehensive health needs assessment, transparent priority-setting, and rigorous evaluation that considers costs and outcomes – are essential services for public healthcare agencies, and health economics can provide frameworks and processes that are transparent and defensible.
Sierra Health Economics helps California's public healthcare agencies fulfill these functions with rigor and transparency. Our services translate complex economic concepts into practical tools that demonstrate value, build trust, and guide better decisions.
Not sure what you need? Let's talk about your challenges and explore how health economics can help.
Schedule a free 30-minute consultation to discuss:
Achieving PHAB accreditation demonstrates your commitment to quality and performance improvement—but integrating health economics throughout your application strengthens your case significantly.
Why This Matters: PHAB increasingly expects agencies to demonstrate not just what they do, but why those choices represent the best use of limited resources. Economic evidence answers that "why" with credibility and rigor.
We've supported multiple California health departments through accreditation, providing the economic expertise that transforms required documentation from compliance exercise into genuine strategic asset.
