Unit 3: The Economics of Health and Environment

Health

• the state of being free from illness or injury.

• a person’s mental or physical condition

• can be defined as physical, mental, and social well-being and as a resource for a living a full life.

• it refers not only to the absence of disease, but the ability to recover and bounce back from illness and other problems.

• physical is about the body, mental is about how people think and feel.

Determinants of Health

1. Biological Factors

2. Lifestyle Choices

3. Environmental Conditions

4. Access to Healthcare Services

5. Social Determinants

Factors of Good Health

1. Genetics

2. Environment

3. Relationships

4. Education

5. Nutrition

6. Healthcare Access

7. Sanitation and Hygiene

Good health

is multidimensional; it is not just about avoiding disease ut about thriving physically, mentally, socially, and environmentally.

Roles of Health in Economic Development

1. Productivity

2. Human Capital Formation

3. Reduced Healthcare Costs

4. Attracting Investment

5. Social Stability

Cycle of Poverty and Ill-health

• Poverty limits access

• Ill-health reduces productivity

How Poverty and Health are Linked

• Limited Access to Essentials

• Malnutrition and Disease

• Education Gap

Policy Implications

• Social Safety Nets

• Universal Healthcare Programs

• Targeted Interventions

• Integrated Approaches

Poverty and ill-health

are mutually reinforcing. You can’t solve one without addressing the other. Healthy populations are more productive, better educated, and capable of lifting themselves out of poverty. Likewise, reducing poverty improves access to nutrition, healthcare, ad education, creating a virtuous cycle of growth and well-being.

Philippine Laws Related to Health

1. RA 11223 - Universal Health Care

2. RA 10932 - Anti-Hospital Deposit Law

3. RA 11509 - Doktor Para Sa Bayan Act

Universal Health Care (RA 11223)

• Around 55% of health spending in the Philippines is paid out-of-pocket

• This can push families into poverty, even for essential healthcare

• People may have to choose between healthcare and basic needs like education

• This negatively affects individuals’ ability to be productive in society

• The Universal Health Care (UHC) Act aims to improve access and reduce out-of-pocket costs

• However, access to healthcare is still uneven across the country

• More efficient investment in healthcare delivery is still needed

Anti-Hospital Deposit Law (RA 10932)

• Rodrigo Roa Duterte signed the law on August 3

• Republic Act No. 10932 strengthens rules on emergency medical care

• Hospitals and clinics cannot demand deposits before giving emergency treatment

• Refusing or delaying treatment in serious cases is illegal

• Violators (staff or practitioners) face:

  • 6 months to over 2 years imprisonment, and/or

  • ₱100,000 to ₱300,000 fine

• Higher penalties for hospital officials responsible for such policies:

  • 4 to 6 years imprisonment, and/or

  • ₱500,000 to ₱1,000,000 fine

• Repeated violations (3 times) can lead to revocation of the facility’s license by the Department of Health

Doktor Para Sa Bayan Act (RA 11509)

• Rodrigo Roa Duterte approved the law on Dec. 23, 2020

• Republic Act No. 11509 provides medical scholarships to address doctor shortages

• Priority is given to applicants from towns without government doctors

• Goal: ensure at least one doctor in every municipality

• Scholars are required to render return service after graduation:

  • At least 6 years (for 4-year program)

  • At least 7 years (for 5-year program)

Health as Investment

1. Human Capital Theory

2. Economic Returns

3. Social Returns

Human Capital Theory

• Health is viewed as a form of capital—an asset that increases the value of labor.

• Just as education builds skills, good health enhances physical and mental capacity, making individuals more effective contributors to the economy.

• A healthier workforce is more adaptable, innovative, and capable of sustaining long-term growth.

Economic Returns

Good health boosts productivity, extends working life, reduces absenteeism, and lowers healthcare costs, benefiting both individuals and the overall economy.

Social Returns

Investing in health improves quality of life, strengthens communities, benefits future generations, and supports national stability and sustainable development.

Health is not just a cost. It’s a strategic investment. Nations that prioritize health build stronger economies, reduce poverty, and create more equitable societies. In this sense, health serves as both an economic driver and a social foundation, ensuring prosperity and stability for future generations.

Direct Impacts of Environment on Health

• Air quality - respiratory & cardiovascular diseases; clean air improves health

• Water & sanitation - prevent waterborne diseases; poor sanitation increases outbreaks & child mortality

• Climate & ecosystems - risks of malnutrition, disease spread, displacement; healthy ecosystems support food security & disease control

Indirect Impacts of Environment on Health

• Food systems - environmental damage lowers yields, causing malnutrition & weak immunity

• Mental health - polluted/unsafe environments increase stress, anxiety, depression; green spaces improve well-being

• Inequality - poorer communities face higher environmental risks, worsening poverty & health outcomes

Policy and Development Implications

• Sustainable practices - pollution control, renewable energy, conservation; lower disease & protect future generations

• Integrated policies - combine health & environmental actions (healthcare, clean water, climate adaptation)

• Global responsibility - environmental protection supports public health & resilience against pandemics and climate crises

The environment is the foundation of health, and health is the engine of economic and social development. Protecting one sustains the other. A healthy environment reduces disease, lowers healthcare costs, and strengthens communities, while good health enables people to care for and protect their surroundings. Together, they form the bedrock of sustainable prosperity.