Healthcare Economics

Write a final paper that clearly applies economic analysis on a specific way that would
significantly improve health care. Also discuss how it would affect access, quality and cost
.

Healthcare Economics

The healthcare sector encounters challenges that hinder provision of services to clients.
Economics approaches come in handy in solving certain challenges. Often, systematic economic
considerations and evaluations of problems help institutions maximize care delivery to their
customers. Usually, healthcare organizations apply economic theories regarding, producers,
consumers, as well as the society when handling financial problems. Economic theories allow
organizations to adequately understand the tendencies of their customers, service providers,
competitors, regulators, and generally, business environment (Wels, 2014). Information of this
nature is usually crucial in decision-making processes. This paper analyzes an appropriate
economic way that would significantly better health care. Particularly, the paper addresses how
such a way would solve problems associated with care accessibility, quality, as well as cost. The
paper also aims at applying critical economic concepts when analyzing the described strategy.

Strategy to Improve Healthcare

For healthcare systems to realize improvements, they should efficiently handle their
specific problems. Such problems include economic hindrances such as inadequacy of resources
and staff, market failure stiff competition, and unfavorable economic environments. Usually,
economic hardships hinder efficacy of service delivery to customers, and they may worsen when
not solved in time. They hinder care affordability, accessibility, and they may also impair its
maintenance to high standards. Stakeholders should address challenges from their sources for

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them to completely overcome them. For example, there may be a need to modify certain
regulations such as those guiding the provision of health insurance. Economic analysis of
healthcare sectors should particularly enable stakeholders to inform relevant authorities such as
local and state governments on appropriate courses of their regulations. The approach would
include effective definitions of health packages, programs, benefits and others financial
concerns. Economic approaches would also offer reliable research findings that would be the
basis for allocation of resources to different schemes and departments in healthcare. The strategy
should involve parties directly associated with the presenting challenges such as policy
regulators and health care managements.
Effective Strategy and Improvement of Cost, Quality, and Accessibility of Care
Effective strategies that would lower the cost of healthcare should address existing issues
associated with high prices of care. It would facilitate the understanding of stakeholders about
drivers of the cost of care. There are numerous determinants influencing the cost of health and
efficient strategies should enable the identification of specific factors. Again, strategies should
inform how these drivers raise the cost of care, and also, why different determinants cause their
specific alterations on the cost of care. Usually, regulatory agencies would play centrally in
implementing effective approaches of managing healthcare costs. For instance, while insurance
policies are meant to lessen healthcare costs for individuals, poor economic considerations could
impair their effectiveness and accomplishment of primary objectives. For instance,
overwhelming costs of care would economically drain the public through premiums. In addition,
people would suffer losses through out-of-pocket expenditure in acquiring services to
supplement their health needs. Other critical issues whose inclusion in economic strategic plans
would improve healthcare costs include expenditure on prescription medications and

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HEALTHCARE ECONOMICS
management of preventable diseases (Health Care Service Corporation, 2015). In addressing
costs associated with prescription medicines, important factors include price fluctuations,
demand for specific types of medicines, and their appropriate use by prescribers and patients. An
efficient strategy would also lower the cost of healthcare by promoting practices that protect
people from diseases. Some diseases are expensive to treat yet measures of their prevention are
cheap (Kottke & Isham, 2010, p. 73). For instance, an economically sustainable strategy would
include public education on health and cost consequences of behavioral practices such as
smoking, alcohol consumption, and inappropriate dieting. Adoption of recommendations by the
public would see to the reduction of cases of cost-intensive diseases, and it would eventually
minimize financial straining associated with high treatment cost.
Care quality is also a crucial consideration for planners. Provision of high-quality health
services saves costs in the long-run. An efficient economic strategy would address factors that
contribute to poor-quality in healthcare. For instance, it would address issues such as medication
errors which do not just compromise patient safety, but also cost institutions significant financial
losses. It would be important to establish sources of errors and set up strategies to avoid them. In
most cases, errors could be drug-related, operative, procedure-based, or diagnostic and so on.
Avoiding errors would make care less wasteful and economically sustainable. So as to handle
quality concerns effectively, institutions should budget for quality services including accurate
diagnostic techniques, adherence to standard procedures, and enhancement of the skills of their
professionals. Generally, institutions should proactively promote patient safety so as offer high-
quality care that remains economically viable. In the US, several reputable hospitals go as far as
establishing departments charged primarily with advocating for patient safety (Andel, Davidow,
Hollnader, & Moreno, 2015, p. 46).

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HEALTHCARE ECONOMICS
Issues associated with care inaccessibility include inadequacy of medical facilities,
services such as emergency care, drugs, as well as insufficient general and specialized staff. In
addition, there are hindrances such as poor infrastructure, cultural and social restrictions, and
importantly, financial constraints. Stakeholders in healthcare should address specific hindrances
to care accessibility. For instance, they should prioritize on staffing hospitals, equipping them
adequately, and enabling them to offer services of varied nature. Effective strategies should also
address accessibility from the perspective of customers. For instance, the society may discourage
adolescents to seek sexual health (Chandra-Mouli, McCarraher, Phillips, Williamson, &
Hainsworth, 2014, p. 115). To overcome such limitations, healthcare stakeholders may budget
for educational programs for communities.

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HEALTHCARE ECONOMICS

References

Andel, C., Davidow, S., Hollnader, M., & Moreno, D. (2015). The economics of health care
quality and medical errors. Journal of Health Care Finance, 39(1), 31-48.
Chandra-Mouli, V., McCarraher, D. R., Phillips, S. J., Williamson, N. E., & Hainsworth, G.
(2014). Contraception for adolescents in low and middle income countries: needs,
barriers, and access. Reproductive Health, 11(1), 112-123.
Health Care Service Corporation. (2015). Economics of health care. Retrieved from

Kottke, T. E. & Isham, G. J. (2010). Measuring health care access and quality to improve health
in populations. Prev Chronic Dis, 7(4), 73.
Wels, S. (2014). What is health economics?
degrees/master-of-health-science-in-health-economics/what-is-health-economics.html

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