Programme budgeting and marginal analysis, and developing a business case for a new service

Abstract

Health economics is the study of scarcity and choice. It focuses on the evaluation of the cost effectiveness of health and social care programmes, and the efficiency and equity implications of whole system change. Programme budgeting and marginal analysis (PBMA) is one framework for incorporating evidence of cost effectiveness alongside other relevant goals of service commissioners. A business case is designed to support proposals for a new service development or a capital project. The UK Treasury has set out guidance on the construction of a business case using a five-case model. This guidance was used in the business case for redesign of the Possilpark Health Centre in a deprived area of Glasgow. This business case emphasized that redesign could potentially improve the connection between health, social care, and other community services to meet the complex needs of patients in deprived areas of Glasgow.