Dictionary
The Dictionary provides concise definitions of health economics terms, arranged alphabetically for quick reference. Use it to understand unfamiliar terminology or confirm the meaning of a specific term.
A
- Alliance ModelAlliance Contracting, Collaborative Alliance
- A health system arrangement where multiple independent organisations formally collaborate while retaining autonomy, coordinating around shared objectives such as purchasing power.
C
- Currency ConversionExchange-Rate Conversion, Currency Translation
- The translation of cost or price data from one national currency into another, typically using exchange rates or purchasing power parity.
H
- Health System OrganizationHealth System Structure, System Organisation
- The arrangement of authority, financing and purchasing institutions, care providers, and patient pathways within a health system, including how those actors coordinate and are held accountable.
P
- Passive PurchasingPassive Reimbursement, Budget-Following Purchasing
- A financing approach in which a payer simply reimburses whatever services are provided, without negotiating price or monitoring quality.
- PurchasingCommissioning, Service Procurement
- The process by which a payer allocates pooled healthcare funds to providers in exchange for delivering services to a covered population.
- Purchasing Power AdjustmentPPP Adjustment, Cross-Country Cost Adjustment
- The conversion of cost data across countries using purchasing power parity rather than market exchange rates, to reflect actual local costs.
- Purchasing Power ParityCommon-Basket Comparison, International Price Comparison
- A method of comparing economic value across countries based on the relative cost of a common basket of goods and services, rather than exchange rates.
S
- Self-Funded PlanSelf-Funded Health Plan, ASO Arrangement
- An arrangement where an employer itself assumes financial risk for employee healthcare claims, rather than purchasing a fully insured policy.
- Strategic PurchasingActive Purchasing, Strategic Commissioning
- A financing approach where a payer actively negotiates prices, selects high-performing providers, and designs incentivising payment mechanisms, unlike passive purchasing.
- Substitution EffectSubstitution Response, Relative-Price Effect
- The change in quantity of a good consumed that results purely from a change in its relative price, holding purchasing power constant.
V
- Value-Based PurchasingVBP Purchasing, Value-Based Commissioning
- A purchasing approach that connects provider selection, contracting or payment to measured care quality, outcomes or efficiency for a defined population.