The Role of Health Economics in Shaping Policy Decisions                                                 

Asiimwe Kyomugisha T.

Faculty of Business, Kampala International University, Uganda

ABSTRACT

Health economics plays a pivotal role in guiding policy decisions by systematically evaluating the costs and benefits of health interventions. This interdisciplinary field combines economic theory with healthcare analysis to inform policies that promote efficiency, equity, and effectiveness in resource allocation. As health systems face increasing demand and constrained budgets, economic evaluations—such as cost-effectiveness, cost-utility, and cost-benefit analyses—provide essential insights into how best to use limited resources. This paper examines the historical development of health economics, key theoretical foundations, and its application in shaping public and private health sector decisions. Special attention is given to the roles of stakeholders, health policy frameworks, and the emerging trends transforming the discipline. By highlighting real-world case studies and methodological challenges, the paper underscores the importance of integrating robust economic analysis into health policy development to achieve sustainable, evidence-based healthcare systems.

Keywords: Health Economics, Policy Decision-Making, Cost-Effectiveness Analysis, Economic Evaluation, Health Systems, Resource Allocation, Public Health Policy.

CITE AS: Asiimwe Kyomugisha T. (2025). The Role of Health Economics in Shaping Policy Decisions. RESEARCH INVENTION JOURNAL OF LAW, COMMUNICATION AND LANGUAGES 5(1):8-14. https://doi.org/10.59298/RIJLCL/2025/51814