Health Economic Concepts and Impact on Healthcare Research Paper

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Promoting change in the environment of healthcare is crucial to make sure that the services of the finest quality are offered to the target audience. In other words, it is imperative to make sure that the quality of healthcare services improves consistently. The resulting improvement in the patient outcome can be viewed as the expected outcome. Herein lies the significance of health economics; offering a new way of considering the method of producing, delivering, and consuming the corresponding healthcare services, the identified branch of the global economy can be deemed as a groundbreaking alteration of the healthcare environment. By implementing the principles of the health economy in the realm of healthcare, one will be able to make sure that the unique needs of target audiences could be addressed and that every single member of the society could be provided with the necessary products and facilities. The identified effect can be achieved by introducing the principles of customer satisfaction and, therefore, the transfer to a patient-centered framework of operations in the realm of healthcare.

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It would be wrong to claim that the idea of a patient-centered framework as the tool for managing the needs of the target audience is what makes the idea of health economics the groundbreaking notion that it is. The use of a patient-centered approach as the method of managing the health-associated issues is nothing new – the framework has been implemented in the identified environment for decades (McGuire, 2014). However, it is the use of the economy-related ideas and the concepts typically viewed as market-associated ones that make the patient-focused approach a possibility due to the need to maintain competitiveness high and, therefore, offer the services of the finest quality.

When considering the essential characteristics of the health economics approach, one must bring up the fact that the subject matter allows redesigning the current healthcare systems. For instance, the concepts of health demand and supply can factor in the healthcare system framework successfully. However, it should be borne in mind that, despite being viewed from the economic perspective, the identified elements of the healthcare system retain the intrinsic characteristics that make them unique. For instance, the concept of health demand incorporates not only the quality standards set by patients for healthcare facilities but also the ability of the target audience to pay for a specific set of services. Consequently, when applied to the realm of healthcare, the specified economic notions not only instruct healthcare providers about the changes in the market but also inform them about the essential challenges that the target population experiences. As a result, a compromise can be created so that the needs of the population could be met and that the quality of life could be retained at the appropriate level (Slokum & Buller, 2014).

It should be noted, though, that, when approaching traditional economic concepts from the healthcare perspective, one is bound to deal with minor uncertainty. For instance, it is believed by many experts that demand is inelastic in healthcare. Indeed, seeing that healthcare facilities provide the services that are vital for the well-being of the members of the community, the rise in the prices for the products and services is unlikely to affect the demand levels among the target members of the population. However, it should also be borne in mind that the target market is open to innovations, which may serve as a disruptive force in the healthcare setting and, therefore, affect the demand levels among the patients significantly.

Similarly, the choice of the insurance package made by the patients and their family members may affect the demand levels for a specific service significantly. The said feature of the healthcare market can be deemed as negative as it does not compel healthcare practitioners to improve the services. Indeed, as long as the demand for the identified commodities remains consistent, there is no evident impetus for change. However, a closer look at the identified phenomenon will show that innovative technologies allow producing improved and more efficient medicine, which means that the companies engage in competition, thus, striving to provide high-quality services and products for a comparatively moderate price (Nizar & Chagani, 2016).

Learning more about how healthcare and the private sector government are linked to each other means using the available opportunities to receive improved services. For instance, the implications which the said links have on the insurance policy and the changes thereof may be beneficial to the patients. Specifically, insurance opportunities can be opened in front of patients. For instance, the healthcare program funded by the government allows every single member of the U.S. population to enjoy high-quality services of healthcare organizations. In other words, the opportunities for having health insurance provided that the target population is capable of meeting the established financial eligibility requirements set by the federal law (Maun, Wessman, Sundvall, Thom, & Bjorkelund, 2015). In other words, the prerequisites for improving how the corresponding organizations cater to the health-related needs of the American population are created. The incorporation of economic concepts into the realm of healthcare helps promote a massive change in the identified industry. Introducing a competitive edge into the context in which healthcare companies operate, the idea of viewing the business processes of the said firms serves as the means of understanding the needs of the target audience.

The environment of a healthcare company may also be viewed through the prism of concepts such as resources, costs, and health measures. At this point, the phenomenon of sustainability should be brought up. Although typically associated with environmentalism, the idea of sustainable development may also be related to the philosophy of careful and elaborate usage of the available resources (Song et al., 2015). In the identified context, healthcare practitioners must consider the strategy that helps allocate costs most appropriately to avoid mature liabilities and at the same time be able to increase the quality of services consistently.

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For instance, investing in the development of communication tools, particularly, the IT-related ones, so that the process of attracting new customers and networking could become easier. In other words, a healthcare organization must use its resources in the manner that will help increase the profit margins In many ways, the said objective is linked to the development of new and improved healthcare services since it presupposes that the processes related to logistics and quality management should be improved significantly. Particularly, the speed of transportation, the efficacy of collaboration between the parties involved, the success of information management, and the efficacy of feedback processing can be enhanced significantly. Therefore, when viewing the healthcare process through the prism of economic concepts, one will be able to design the approach that will allow catering to the needs of the target communities in a much more efficient fashion.

References

Maun, A., Wessman, C., Sundvall, P., Thom, J., & Bjorkelund, C. (2015). Is the quality of primary healthcare services influenced by the healthcare centre’s type of ownership? An observational study of patient perceived quality, prescription rates and follow-up routines in privately and publicly owned primary care centres. BMC Health Services Research, 15(3), 417-434. Web.

McGuire, T. G. (2014). A note on income effects and health care cost growth in Medicare. Forum for Health Economics and Policy, 17(1), 1–12. Web.

Nizar, H., & Chagani, P. (2016). Analysis of health care delivery system in Pakistan and Singapore. International Journal of Nursing Education, 8(2), 21-26. Web.

Slokum, J., & Buller, P. (2014). Executing business strategies through human resource management practices. Organizational Dynamics, 43(1), 73-87. Web.

Song, M., Cen, L., Zheng, Z., Fisher, R., Liang, X., Wang, Y., & Huisingh, D. (2015). Improving natural resource management and human health to ensure sustainable societal development based upon insights gained from working within ‘Big Data Environments.’ Journal of Cleaner Production, 94(1), 1-4. Web.

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IvyPanda. (2020) 'Health Economic Concepts and Impact on Healthcare'. 7 August.

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IvyPanda. 2020. "Health Economic Concepts and Impact on Healthcare." August 7, 2020. https://ivypanda.com/essays/health-economic-concepts-and-impact-on-healthcare/.

1. IvyPanda. "Health Economic Concepts and Impact on Healthcare." August 7, 2020. https://ivypanda.com/essays/health-economic-concepts-and-impact-on-healthcare/.


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IvyPanda. "Health Economic Concepts and Impact on Healthcare." August 7, 2020. https://ivypanda.com/essays/health-economic-concepts-and-impact-on-healthcare/.

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