the purpose of this assignment is to distinguish health economics from other forms of economic study.
Write a 500-750 word essay addressing the following criteria:
- Analyze the differences and similarities between health economics and other forms of economic study.
- Choose a health care organization or entity (e.g., hospital, nonprofit medical clinic, physician office, pediatric specialty clinic, optometry office).
- Describe the following economic terms in the context of the selected organization or entity: Scarcity, Opportunity Costs, Marginal Analysis, Supply and Demand, Competition, Efficiency, and Market Failure.
Use two or three peer-reviewed scholarly resources.
Prepare this assignment according to the guidelines found in the APA Style Guide, located in the Student Success Center. An abstract is required.
This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.
You are required to submit this assignment to LopesWrite. A link to the LopesWrite technical support articles is located in Class Resources if you need assistance.
Government and Policy for U.S. Health Leaders
Higbea, R., & Cline, G. (2021). Government and policy for U.S. health leaders (2nd ed.). Burlington, MA: Jones and Bartlett Learning. ISBN-13: 9781284207767 (Available as a custom eBook – includes only Chapter 6)
Essentials of Health Economics
Dewar, D. M. (2017). Essentials of health economics (2nd ed.). Burlington, MA: Jones and Bartlett Learning. ISBN-13: 9781284054620
Expert Solution Preview
Introduction:
Health economics is a distinct branch of economic study that focuses on the allocation of resources among healthcare providers, patients, and policymakers. It considers the unique characteristics of the healthcare industry and the impact of public policies on healthcare delivery and access. This essay aims to differentiate health economics from other forms of economic study, analyze the similarities and differences, and describe various economic terms in the context of a healthcare organization.
Answer:
Health economics is distinct from other forms of economic study such as macroeconomics, microeconomics, and labor economics. Unlike macroeconomics, which deals with the macro-level determination of economic factors such as inflation, healthcare economics focuses on the micro-level allocation of resources in the delivery of healthcare services. Similarly, microeconomics concerns the allocation of resources among consumers and producers in the market, while healthcare economics takes into account the unique demand and supply relationships in the healthcare sector. In contrast, labor economics analyzes the labor market, including issues surrounding wages, employment, and working conditions, among others.
In summary, health economics is a unique branch of economics that examines the allocation of resources in the healthcare sector, including the unique demand and supply relationships that exist in the sector.
Furthermore, in the context of a healthcare organization such as a hospital, economic terms such as scarcity, opportunity costs, marginal analysis, supply and demand, competition, efficiency, and market failure are significant. Firstly, scarcity implies that resources such as medical personnel, equipment, and finances are limited, and the organization must make tough decisions on how to allocate them. Secondly, opportunity costs refer to the benefits that an organization forfeits when it chooses one option over another. For instance, a hospital that chooses to build a new wing instead of improving existing infrastructure incurs an opportunity cost in the lost benefits of upgrading the existing infrastructure.
Thirdly, through marginal analysis, a healthcare organization can measure the incremental costs and benefits associated with the provision of an extra unit of a medical service or equipment. Fourthly, the laws of supply and demand determine price and quantity dynamics in the healthcare market, with prices differing depending on the nature of goods and services. Fifthly, competition among healthcare providers helps to regulate industry standards and prices. Sixthly, efficiency means achieving a given output using minimal resources. Finally, market failures occur when the forces of supply and demand fail to allocate resources efficiently, resulting in undesirable outcomes in the healthcare sector such as unequal distribution of resources.
Conclusion:
In summation, health economics differs from other forms of economic study by uniquely focusing on the healthcare industry’s characteristics, including the demand-supply relationships, resource allocation, and public policy. Economic terms such as scarcity, opportunity costs, marginal analysis, supply and demand, competition, efficiency, and market failure are crucial to healthcare organizations such as hospitals in making informed decisions. Understanding these concepts is vital for healthcare leaders to optimize resource allocation and ultimately improve healthcare access and delivery.