- Dr. S. Vijay Kumar Health economics is the study of how scarce resources are allocated among alternative uses for the care of sickness and the promotion, maintenance, and improvement of health, including the study of how health care and health-related services, their costs and benefits, and health itself are distributed among individuals and groups in society. It can, broadly, be defined as “the application of the theories, concepts and techniques of economics to the health sector”. The Studies of “Health Economics” provide information to decision makers for efficient use of available resources for maximizing health benefits. Economic evaluation is one part of health economics, and it is a tool for comparing costs and consequences of different interventions. India is currently pursuing several strategies to improve health services for its population, including investing in governm