4 economic concepts, and the primary manner in which these concepts impact the world of health care economics
When it comes to economics, elasticity refers to the amount of the relational change of fiscal variable compared to another different change. Elasticity portrays that consumers and suppliers can find it simple to change the behavior and replace it with another desirable conduct. Elasticity being healthy, it is an important criterion that can be used to compare different services and goods. Evaluation of elasticity in economics is straightforward and clear when compared to productivity (Baicker, Congdon, & Mullainathan, 2012). However, when it comes to types of elasticity and productivity, the case is different.
According to Phelps (2016), resources are inputs that are employed when it comes to the creation of things. They help entrepreneurs to provide services to clients. In the field of economics, resources may be divided into two categories. These are non-human resources and human resources. Nonhuman resources include technology, financial resources, goods, capital, and land. While human resources consist of management and labor, however, the disadvantage of these resources is that options should be determined by the things that are manufactured. The way resources are manufactured and how they will be destroyed can also determine a lot. When you are using these resources, it is important to keep in mind that you cannot exhaust all of them. You need to choose those that will be of great importance to you and your customers at large.
Health economics refers to a branch of economics that mainly focuses on the issues, which are associated with effectiveness, value, consumption, as well as the production of healthcare, health, behavior, and value. In other words, this branch of economics suggests that economists focus on behaviors like smoking that can hurt your health and healthcare system at large. When you demand better health it means that you have to consider a good health care system. Customers demand healthcare to attain the goal of having a large stock in their business. Entrepreneurs make use of resources to produce and consume healthy goods. An expert in health finance interprets the demand for health care as the capacity to get help from it (Jones, Rice, d’Uva, & Balia, 2013).
It refers to the fiscal value of services and goods, which producers set for consumers to purchase. Basing costs in terms of economics, they are alternative opportunities which consumers can use to forgo one good to consider a fulfilling one. They are at times regarded as the opportunity costs. For a customer who has a fixed salary, this type of cost may be suitable for purchasing a domestic appliance than covering the expenses of a vacation. Mostly, fiscal costs are employed to estimate opportunity costs. However, this does not apply when it comes to normal costs (Pauly, McGuire, & Barros, 2012).
The value of healthcare professionals and decision makers in understanding the discipline of health economics.
Healthcare economics is crucially important to healthcare managers and other health professionals since it assists them in focusing on key issues. Importantly, through healthcare economics, healthcare professionals can go through the complex data required to address issues and also identify critical data required for a given issue. Also, there are various issues that may arise within the healthcare facility, and these issues might be complex such that they require expertise with skills to address them. Therefore, an individual with a knowledge of economics and health care will easily solve such issues.
Using health care economics knowledge assists the professional in outlining the strategies that can assist in realizing the goals of the organization using the resources available. Also, through economic knowledge, one can carefully access the implication of a given decision before taking the step of solving it and this assists in getting effective solution to important challenges. Also, it makes possible for one to decide on the rules of decision making. Similarly, through knowledge, healthcare managers get the framework for making sense of costs.
The importance of decision makers and healthcare professionals is to understand the subject of health economics. Health economics is one of the disciplines of economics, which focuses on the health care of customers. The main thing that is described and explained in the field is how the professionals of health care use resources differently. It is also against those people who want to grow economically with insufficient resources. Therefore, this discipline is trying hard to help people come up with amicable decisions that can improve healthcare positively.
The experts in health economics insist that there is a need for making simple decisions by evaluating the structure of producing clear solutions (McPake, Normand, Smith, & Nolan, 2013). This is not just a factor, but a major one. Therefore, healthcare professionals need to agree about the basic rule of this health and evaluate how it may affect the process of making decisions.
Healthcare being enjoyable is not the only thing that makes it worthwhile in the eyes of people out there. This is because other people may have a different opinion. Normally, people need healthcare to bring a positive impact on their health. The importance of health care may be evaluated to see if they are worthwhile or not. However, it has a drawback that might suggest that normal suppositions regarding the effects of sharing resources in the marketplace do not count at all.
Baicker, K., Congdon, W. J., & Mullainathan, S. (2012). Health insurance coverage and take‐up: Lessons from behavioral economics. The Milbank Quarterly, 90(1), 107-134.
Jones, A. M., Rice, N., d’Uva, T. B., & Balia, S. (2013). Applied health economics. Routledge.
McPake, B., Normand, C., Smith, S., & Nolan, A. (2013). Health economics: An international perspective. Routledge.
Pauly, M. V., McGuire, T. G., & Barros, P. P. (Eds.). (2012). Handbook of health economics (Vol. 2). Elsevier.
Phelps, C. E. (2016). Health economics. Routledge.