Complete the \”NUR-621 Economic Theories and Models in Health Care\” worksheet. This assignment explores the efficiency and components of current health care models.
Your responses should be based on evidence. Include references to your textbook and one scholarly article.
While APA style is not required for the body of this assignment, solid academic writing is expected, and documentation of sources should be presented using APA formatting guidelines, which can be found in the APA Style Guide, located in the Student Success Center…
NUR-621 Economic Theories and Models in Health Care
The purpose of this assignment is to describe economic theories and models in health care. Include your responses in the worksheet listed below and base your responses on evidence. Include references to your textbook and one scholarly article. The four theories/models are listed below.
Theories/Models
Description/Definition
Example Related to Health Care
Components
1. Efficiency
The ratio of total resources consumed in the healthcare input system verses the value measured in healthcare output systems Cylus et (2017). Health systems can be inefficient if the health system input resources are bound for outputs, which are not the main concern for society, or when input resources are misused in producing better health system outputs process.
Example: Cancer treatment may bring benefits to some individuals if there is a very high-cost of end-end of life Cancer treatment. In contrast, the community can have an opinion that the scarce money available can best if it is used in other ways that bring more considerable benefits.
Efficiency has three components, namely technical and productive efficiency individual produces the goods and services at low cost, Allocative efficiency where the resource available is concentrated at the highly demanded products, and Dynamic efficiency, which demands industries to have a change in their technology.
2. Supply and Demand
The mechanism of supply and demand in a free markets helps to control the production, supply, and product consumption. Depending on product price and level of income, consumers are the people who show specific product demand in healthcare are the patients. To meet consumers, demand enterprises are those who produce and deliver the required services and products to the consumers. Regardless of the patient’s ability to pay or not, treatment has to be provided to the patient in cases like an emergency (Christos et al., 2019).
Example: Unlike other products and services, can contain a warrant where a certain period is given form the date of purchase that if the product stops functioning well in that period given the consumer can return the product, and the money can be referred back
Demand and supply has four components which are consumer, Investment, Government spending, and Net Exports
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3. Economies of Scale
Economies of scale are when the cost of production reduces, whereas the production increases (Freeman et al., 2020). Economies of scale bring benefits to the organization, and consumer enjoys low prices. Lower prices stimulate demand increase, which leads to economic growth. There are two types of economies of scale, which are internal and external economies of scale. Internal economies of scale can be experienced due to improved technical areas, efficiency in management, financial ability, power of monopsony, or extensive network access
The volume on fixed costs has impacts, which can be complex in a way that the demand available cannot satisfy too large technical additional purchased fixed resources with minimum quantity. An example is buying another x-ray machine when genuine demand is low.
The two main components of economies are internal economies of scale, which the management can control, and external economies of scale, which are external factors.
4. Market Failure
Market failure is a market that goes against all the needed conditions of a perfect market (Iszaid et al., 2018). Characteristics of market failure include rationality and sovereignty of consumers which states the consumers’ willingness to make use of their resources in order to benefit from them.
For example, America’s free trade generated thousands of swindlers and frauds in the medical care market competing in the nineteenth century. The results which came were suffering, disabilities, deaths, and financial waste.
The components which lead to market failure include asymmetric information, market power, which is concentrate, public goods, and externalities, as discussed earlier.
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Economic Theories and Models in Health Care
References
Christos I, Areti J, Konstantinos K & Lambrini K (2019) Theories of Supply and Demand, Problems and Peculiarities in the Healthcare Sector: It’s Effects on Health Policy Retrieved on 6/9/2020 URL: https://healthcare-communications.imedpub.com/theories-of-supply-and-demand-problems-and-peculiarities-in-the-healthcare-sector-its-effects-on-health-policy.pdf
Cylus, J., Papanicolas, I., & Smith, P. C. (2017). How to make sense of health system efficiency comparisons? Copenhagen: World Health Organization, Regional Office for Europe.
Freeman, M., Savva, N., & Scholtes, S. (2020). Economies of scale and scope in hospitals: An empirical study of volume spillovers. Management of Science.
Iszaid, I., Hafizan, A. H., & Juni, M. H. (2018). Market failure in health care: a review. International Journal of Public Health and Clinical Sciences, 5(5), 16-25.
Question – Economic Theories and Models in Health Care
Complete the \”NUR-621 Economic Theories and Models in Health Care\” worksheet. This assignment explores the efficiency and components of current health care models.
Your responses should be based on evidence. Include references to your textbook and one scholarly article.
While APA style is not required for the body of this assignment, solid academic writing is expected, and documentation of sources should be presented using APA formatting guidelines, which can be found in the APA Style Guide, located in the Student Success Center.
You are required to submit this assignment to LopesWrite. Refer to the LopesWrite Technical Support articles for assistance.
Related FAQs
1. What are health economic models?
Health economics is the evaluation of efficiency, effectiveness, value, and impact of health related services. HEMU strives to evaluate the total health impact of disease programs and illnesses through the use of comprehensive evaluations and modeling.
As you continue, premiumacademicaffiates.com has the top and most qualified writers to help with any of your assignments. All you need to do is place an order with us. (Economic Theories and Models in Health Care)
Economic Theories and Models in Health Care
2. What is economic theory in healthcare?
Economic theory suggests that a nurse would evaluate the utility of all possible alternatives and then compare the relative costs and benefits of each option before making this choice (see Figure 1). The rational choice would be the option in which the expected benefits outweigh the opportunity cost.
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