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Key Topics
- Requirement
- Solution
- HEALTH CARE ECONOMICS
- Introduction
- Principles of Health Economics
- Production, Scarcity, Resources and the Opportunity Cost of Health Care
- Markets, Supply and Demand for Health Care
- The Principle of the Margin
- Defending the importance of considering the complex nature of health and healthcare
- Criticizing the importance of considering the complex nature of health and healthcare
- Conclusion
- REFERENCES
Requirement
Defend or Critique the Importance of Considering the Complex Nature of Health and Health Care when Examining the Economic Principles Related to Health Care Delivery.
Solution
HEALTH CARE ECONOMICS
Introduction
Today, people view health in various distinct ways, mainly when it is very difficult to differentiate that what is unhealthy and healthy. Most of the people do not rejoice the visit to the clinic, but it is significant for the individual's well-being. Further, healthiness can be defined in various distinct ways, but it cannot be explained in those various different ways. Being an individual, I believe that if an individual’s mental, social, spiritual and physical being is not consistent then it is measured unhealthy. Furthermore, using and examining the economic principles will help in understanding the importance and the complicated nature of health care and health to the health care delivery. Moreover, this report will help in understanding the important principles of health economics like scarcity, production, resources and the opportunity cost of the health care along with the markets, demand, and supply for the health care. Also, the principles of the margin will be discussed in the report in order to defend or criticized the importance and the complicated nature of the healthcare and the health.
Principles of Health Economics
The health economics is one of the various disciplines that might be utilized in order to analyze the various issues of health care and the health. Further, the health economics is one of the various topics through which the principles and the methods of the economy can be used (McPake, B., Normand, C., & Smith, S. 2013). Further, the various principles of health economics are being discussed in order to interpret the context of health care and the health and further deciding whether to criticize or defend the importance and the complicated nature of the health care and the health. Further, it has been observed that the health economics tries to apply the analytical tools and the methods which might be used for any service which the economy generates.
Production, Scarcity, Resources and the Opportunity Cost of Health Care
The production needs the usage of the resources like labor and the raw materials, and further, the production process is being used in order to convert the resources to the final services.
Furthermore, the inputs of the process of production are the resources like personnel (labor), building and equipment (capital), raw materials and the land. Further, the output of the process of production using the inputs of the health care can be professionals of health care, clinic and the materials of the therapeutic. The conversion of the inputs into outputs impact the factors of mediation, for example, the clinic is publicly or the privately owned.
It is being observed that there is the scarcity of the resources and the choices should be made carefully while deciding what goods are going to be produced, how they can be produced and how the services can be availed by the clients. Further, in the economy, there are not adequate resources for the health care in order to meet the needs and the desires of the health which people have and because of this reason the choice is being made between the needs (Drummond et al., 2015). Moreover, the economists allude that the scarcity and the necessity to select are unavoidable and the ubiquitous and this gives rise to the important concept of the economy i.e. opportunity cost. If the scare resources are being used in order to generate a service then further, the resources cannot be utilized to generate other services. The opportunity cost is being derived from the advantages which are forgone by not generating other services.
Also, the financial cost is being used in order to calculate the opportunity cost in some cases only. Further, in the system of health, it is very important to fulfill the needs as compared to wants. Therefore, it is very important to fulfill the needs of the clients with the optimum utilization of the resources.
Markets, Supply and Demand for Health Care
The analysis of the economy markets through the theory of price. Further, the suppliers and the consumers base the selling and the buying on the price which they have to receive and pay. The more consumers will avail the services of the mediation if the prices are low but the suppliers would like to sell more if the prices are high in order to maximize the profitability. It is being observed that the presence of supply and the demand adjudge the price of the services of mediation to the clients. Further, it has been researched that the health economy is very complicated and the price theory is not the only model which is the reality’s accurate prescription.
The supply of the health care is being analyzed in the economy in related but in separate ways. One way is related to the input and output model of the resources (Gulliford, M., & Morgan, M. 2013). The mediation includes the problem of economies of scale. Another way in which the supply can be analyzed is the structure of the market. It further contains perfect competition which contains low prices and the maximized output. The other is the monopoly which has the greater power of the market and makes the larger profits along with the sustainable competitive position in the health care.
The health care is not demanded as it is pleasurable but in actual, it can be unpleasant. Health is much peculiar as compared to the health care due to its attributes. Further, in the content of the ordinary services, the economics differentiates among the want, that is the need in order to consume something. The effective demand is the important determinant of the allocation of the resources as compared to wants in the mediation. But, it is being believed that everything happens in the health care because of the needs and not for demands or the wants.
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The Principle of the Margin
The economics of the health is being analyzed according to the principle of the margin. For example, the significance of looking at the cost of the margin is the effect of the various schemes which are being created to the inpatient cost of the surgical of the lower hospital by minimizing the stay length through the time of discharge. The hospitals might have the information about the average cost of the stay of inpatient which further can be used in order to calculate the average cost on a regular basis. But, the cost of the inpatient stay is not consistent. Further, the average contains the share of the treatment cost and the high-reliability care which occurs at the beginning of the stay of inpatient (Jones et al., 2013). The reduction of the low-reliability days at the end of the inpatient stay will save the less cost as it was expected. Furthermore, the marginal cost will be calculated in relation to decreasing or increase the number of days which would offer an accurate estimate of the savings. Therefore, the marginal benefit is being defined as the additional benefit which is being achieved by the consumption of one additional unit of the service.
Defending the importance of considering the complex nature of health and healthcare
Having the right and the accurate resource in the mediation can be the greatest factor in the economics of the health by ensuring that the patients get appropriate check-ups and the medications for the ailments and the adequate beds for the patients in the clinics. Further, the places can be included like hospice, nursing, hospitals, etc. Furthermore, the personnel of the health care will include the nurses, doctors, technicians of the lab, the staff of rehabilitation, etc. All these resources will make the health economics run smoothly and the professional way on a regular basis (Coughlan, M., Cronin, P., & Ryan, F. 2013). Moreover, the health and the health care are complex in nature, and it is being understood while discussing the various principles of the economy related to the health care delivery.
The technology is becoming more advanced day by day, and the hospitals are using modern equipment in order to provide the mediation to the clients in the best possible way. However, the usage of the new technology is somehow costly, and some of the clients are not able to avail them. The government should offer some help to them so that they can avail those services and get cured by the treatment. Further, the significance and the complicated nature of the health care and the health should be considered in order to help the clients for their well-being in a positive way. Therefore, the personnel of the healthcare is only required in order to work in a systematic way by completely and accurately using the resources while offering the mediation services to the clients.
Criticizing the importance of considering the complex nature of health and healthcare
The critique for the significance of the considering the complicated nature of the healthcare and the health while examining the principles of the economy with respect to healthcare delivery are like people are being victimized to the organizations of the health insurance and the network of the healthcare along with vested enwrap in conflicting the plans of the health insurance. Further, the business groups in the health care get after the maximization of the profitability in order to achieve the sustainable competitive position. The supplier of the health control is the main determinant. The original and the new technologies are not being used because of their high prices, and most of the people are not able to avail the services of the new technology because of the prices only. And as a result, they are not being cured (DiClemente et al., 2013).
Further, only the public health care organizations have the interference of the government and the private health care organizations are only interested in maximizing profitability by using new and advanced technology with the higher prices. The staff of the health care is somehow not cooperative with the inpatient. Also, it is being observed from the economic principles that the suppliers and the consumers offer and avail the services depending on the prices which are being provided by the health care, the supplier only offers services if the prices are high and the consumer will only avail services if the prices are low. Therefore, the nature of the health and the health care is made complicated by the personnel of the health care only.
Conclusion
An appropriate running system of the health care moves with the stable economy. Further, the system of the health care and the economy are proportionate to one another like a down turn in which one impacts the other. Furthermore, there are distinct factors like cost, the rate of reimbursement, etc. which impact the healthcare. The system of the health care is competent enough in order to make the appropriate decisions which help in achieving the desirable outcomes. Being an individual, I would defend the significance of considering the complicated nature of the health and the health care as I am working in the health care and I know that how the health economics principles impact the health and the health care. Therefore, the clinics have to improve their way of using resources and providing services to the clients to some extent only for the benefit and the well- being of the consumers with the low prices and further this will help in maximizing the profitability as well.
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Coughlan, M., Cronin, P., & Ryan, F. (2013). Doing a Literature Review in Nursing, Health, and Social Care: SAGE Publications. Sage.
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DiClemente, R. J., Salazar, L. F., & Crosby, R. A. (2013). Health behavior theory for public health. Jones & Bartlett Publishers.
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Drummond, M. F., Sculpher, M. J., Claxton, K., Stoddart, G. L., & Torrance, G. W. (2015). Methods for the economic evaluation of health care programs. Oxford university press.
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Gulliford, M., & Morgan, M. (Eds.). (2013). Access to health care. Routledge.
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Jones, A. M., Rice, N., d'Uva, T. B., & Balia, S. (2013). Applied health economics. Routledge.
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McPake, B., Normand, C., & Smith, S. (2013). Health economics: an international perspective. Routledge.
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