The Center Of Health Economics
Health Economics
Strayer University
Health Economics
HSA 510
Dr. Christine McMahon
July 19, 2013
Health Economics
Economics focuses on allocation of resources for businesses. Health economics emphasizes the functional capability of the health care system and obtaining the most from available resources. Health economics is not only the concern of economists but also hospital management and health care professionals. In fact, allocation of health care resources affects everyone. The center of health economics analyzes from a macro and micro perspective. Both are the underlying concepts of the health care industry. From another standpoint health economics are also concerned with matters associated with effectiveness and …show more content…
Health care markets fall short of the characteristics required in determining fair market price that reflects the economic value of resources. However, allocation of hospital resources can be examined by using a theory of production to determine efficient use of resources. Alfred Marshall defined economics as a study of mankind in the ordinary business of life; it examines that part of individual and social action that is most closely connected with the attainment and with the use of the material requisites of well-being. He goes on to say health economic concerns are the allocation of resources for care of sickness which need to be cured for the promotion, maintenance and improvement of health. This is the responsibility of the health sector through the Department of Health. The health care services have corresponding costs and benefits among individual and groups in society, (Marshall, 2013). Resource allocation when applied to economics in health care may be complicated because of market characteristics. These features differ from businesses in a highly competitive market. Health care services recognized as an imperfect market for several …show more content…
Developing organizational and management techniques that address variations in productivity and patient flow
2. Changing the role and nature of commissioning by better use of data to reduce variation and improve quality
3. More widespread use of existing data and methods such as run charts, (NHS Confederation, n.d.)
Statistical tools to measure and improve efficiency in the health care industry are increasing. Much of the research and data collected by economists are implemented by health organizations leaders and health providers. A collaborative effort from all parties involved will changes take place. Health economics continues to face challenging domestic problems many countries face. Reducing costs for consumers and health providers raises many questions. Government intervention and laws created by the President of the United States may solve some of the nation’s issues but more will surface. Health economist play an important role in society by research and use of statistical means for collecting data is an effort to improve the efficiency of heath care organizations, reduce costs, and improve financing in health care
Strayer University
Health Economics
HSA 510
Dr. Christine McMahon
July 19, 2013
Health Economics
Economics focuses on allocation of resources for businesses. Health economics emphasizes the functional capability of the health care system and obtaining the most from available resources. Health economics is not only the concern of economists but also hospital management and health care professionals. In fact, allocation of health care resources affects everyone. The center of health economics analyzes from a macro and micro perspective. Both are the underlying concepts of the health care industry. From another standpoint health economics are also concerned with matters associated with effectiveness and …show more content…
Health care markets fall short of the characteristics required in determining fair market price that reflects the economic value of resources. However, allocation of hospital resources can be examined by using a theory of production to determine efficient use of resources. Alfred Marshall defined economics as a study of mankind in the ordinary business of life; it examines that part of individual and social action that is most closely connected with the attainment and with the use of the material requisites of well-being. He goes on to say health economic concerns are the allocation of resources for care of sickness which need to be cured for the promotion, maintenance and improvement of health. This is the responsibility of the health sector through the Department of Health. The health care services have corresponding costs and benefits among individual and groups in society, (Marshall, 2013). Resource allocation when applied to economics in health care may be complicated because of market characteristics. These features differ from businesses in a highly competitive market. Health care services recognized as an imperfect market for several …show more content…
Developing organizational and management techniques that address variations in productivity and patient flow
2. Changing the role and nature of commissioning by better use of data to reduce variation and improve quality
3. More widespread use of existing data and methods such as run charts, (NHS Confederation, n.d.)
Statistical tools to measure and improve efficiency in the health care industry are increasing. Much of the research and data collected by economists are implemented by health organizations leaders and health providers. A collaborative effort from all parties involved will changes take place. Health economics continues to face challenging domestic problems many countries face. Reducing costs for consumers and health providers raises many questions. Government intervention and laws created by the President of the United States may solve some of the nation’s issues but more will surface. Health economist play an important role in society by research and use of statistical means for collecting data is an effort to improve the efficiency of heath care organizations, reduce costs, and improve financing in health care