Economic Theories and Models in Health Care – Nursing essay

The completed economic Theories and Models in Health Care paper describes economic theories and models in health care.

Economic Theories and Models in Health Care paper

NUR-621 Economic Theories and Models in Health Care Paper

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.

Economic theories and models in health care - nursing essay
Economic Theories and Models in Health Care – Nursing essay

Theories/Models
Description/DefinitionExample Related to Health CareComponents
EfficiencyThe ratio of total resources consumed in the healthcare input system versus the value measured in healthcare output systems Cylus et al. (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 benefit some individuals if there is a very high cost of end-end of life Cancer treatment. In contrast, the community can believe that the scarce money available can be best if it is used in other ways that bring more considerable benefits.Efficiency has three components: technical and productive efficiency. The 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 change their technology.
Supply and DemandThe mechanism of supply and demand in free markets helps control 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. Enterprises produce and deliver the required services and products to meet consumers’ demands. 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, it can contain a warrant where a certain period is given from 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 backDemand and supply has four components which are consumer, Investment,  Government spending, and Net Exports
Economies of Scale  Economies of scale are when the cost of production reduces, whereas the production increases (Freeman et al., 2020). Economies of scale benefit the organization, and consumers enjoy low prices. Lower prices stimulate demand increase, which leads to economic growth. There are two types of economies of scale: 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 accessThe volume on fixed costs has impacts, which can be complex in 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.
Market FailureMarket 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 use their resources to benefit from them.For example, America’s free trade generated thousands of swindlers and frauds competing in the nineteenth century in the medical care market. The results were suffering, disabilities, deaths, and financial waste.As discussed earlier, the components that lead to market failure include asymmetric information, market power, concentration, public goods, and externalities.
Economic Theories and Models in Health Care – Nursing essay

References

Christos I, Areti J,   Konstantinos K & Lambrini K (2019) Theories of Supply and Demand, Problems and Peculiarities in the Healthcare Sector: Its 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 Sciences5(5), 16-25.

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NUR-621 Economic Theories and Models in Health Care Template

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/DefinitionExample Related to Health CareComponents
Efficiency   
Supply and Demand   
Economies of Scale   
Market Failure   

Economic Theories and Models in Health Care Instructions

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. Economic Theories and Models in Health Care – Nursing Essay

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.

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