York Health Economics Consortium was originally formed in 1986 by the University of York and three regional Health Authorities in response to a perceived lack of economic research capacity in operational units in the NHS. The beliefs that informed its creation, and continue to be its philosophy, are that:

• The discipline of economics can help Service Managers to provide more cost-effective and higher quality health care;
• Universities should undertake research that is of direct relevance to the community

YHEC's role was to provide research, consultancy and training to the NHS. More recently its client base has expanded and now includes private health sector clients, such as pharmaceutical and devices companies and, outside of the health sector, Local Authorities and Voluntary organisations.

The Consortium became a limited company with shares wholly owned by the University of York in July 2001.