Economics of Health Care Essay

The cost of healthcare in the U.S. is often discussed by the press. Trends in healthcare spending are determined by public and private decisions about health care delivery and reflect the values and beliefs of society and policy makers.

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Compare the distribution of healthcare expenses for 2017.Economics of Health Care Essay

Write a summary of your findings and their meaning in terms of health care spending.

Cost-benefit, cost-effectiveness and cost-utility analyses are forms of economic evaluation which are useful in health economics for comparing costs and allocating resources. Health economics is widely relevant to governments and the health sector in implementation of new policy, as it concerns the allocation of resources in the context of a limited budget, or ‘scarcity’. Economic evaluation is a potential tool for setting priorities in health, though it is only one of many potential criteria, including overall budget and public attitudes and wants. Economic evaluation is already in use in some settings, such as in pharmaceutical company proposals for government subsidisation,Economics of Health Care Essay
Changing factors such as aging populations and new technologies becoming available are increasing expectations from people throughout the world, and decision makers must make rational choices to maximise benefits to population health whilst working with limited resources. Yothasamut et al (2009) summarise this by observing that “health care resources in every setting are always constrained, while unlimited demand is observed”. The ‘best’ choices in the context of economics are the ones which maximise utility (individual satisfaction through consumption of goods) and welfare, the sum utility experienced by all individuals in society. Decision makers often have to seek satisfactory rather than optimal solutions, also known as working with ‘bounded rationality’ (Simon 1957 in Williams et al 2008), as it is important to pursue both efficiency and equity in the funding of health care. Therefore, it may be unsuitable to fund the most cost effective option if it sacrifices the equal distribution of benefits. Research in health economics can take a normative or positive approach and this reflects the balance needed between cost control and equity when making economic decisions. Positive economic research and analysis is concerned with ‘how things are’ and seeks to explain economic phenomena, whilst normative economic research and analysis is concerned with ‘how things ought to be’ and relies on value Economics of Health Care Essay

Similar to most goods, the demand of services increases with the increase of income among consumers. It also depends on the quality of the stated services and thus better services are demanded more than poor services. Health care services are no exception. Their demand rise and fall in response to price changes and consumer income changes. The health care market is also influenced by the accessibility of information and the precision between the general practitioner, who is the supplier and the patient-consumer.

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Another major determinant of demand for both private and public health care is the insurance premiums rates. The insurance companies, therefore, form a major element in health care economics since they play the role of offering guarantee to the prices charged by medical practitioners.Economics of Health Care Essay

This however poses a problem in that the medical professionals operates aiming at attaining a certain amount of compensation while all that the insurance companies need is to make profit and as long as they are profitable, then they are contented. The need to provide quality healthcare is not their duty. This is the reason why both medical expenses and insurance premiums keep escalating while the quality of healthcare decreases leaving no space for the genuine delivery of services (Mankiw, 2009, p. 1).

This can actually be solved by getting rid of the insurance companies leaving the medical profession to deal with the customers directly. Otherwise, the government can seriously regulate all the factors that affect health care and ensure consumers of healthcare services are not exploited. This is achievement by making the necessary legislation for proper control of health provision.Economics of Health Care Essay

Change of behavior is also an exemplary intervention in the health sector and the key to good health. It can be achieved by formally or informally educating people on healthy ways of living or by practicing simple personal behavior such as: washing hands, seeking treatment in time, managing tuberculosis by carefully observing treatment, avoiding HIV infection.

The main idea of behavior change and communication is to provide the public with the necessary information that will enable the people to access good quality health services with little regulations. It also aims at providing people with information on the necessary issues, such as treatment guidelines on regular diseases, proper use of over-the-counter drugs (Cardoso, 2008, p. 9).

As highlighted in the above discussion, appropriate legislation is necessary in order to stabilize the demand of healthcare services. This will also ensure that consumers of health care services are provided with high quality services. It is also necessary to powerfully advocate for cooperation between governments and international organizations and financial institutions. This will ensure that all stakeholders in provision of healthcare services are involved in policy formulation and implementation.Economics of Health Care Essay

Human rights approaches have lately been emphasized in the health sector to help increase the demand of health care services. These fundamental rights give citizens certain rights such as freedom from discrimination based on the sex of an individual, torture, slavery, etc. These rights are a precondition to a healthy living; they protect citizens from manipulation.

The health rights which are provided by constitutional laws gives an individual the right to claim any form of treatment or health care at any particular time. These rights have thus advocated for better services and, consequently, more healthcare services are demanded (Cardoso, 2008, p. 7).Economics of Health Care Essay

Reference List

People place various levels of price on their lives and the lives of their loved ones. People take drastic measures in an attempt to increase and improve one’s life. Unfortunately, money and economics have a great influence on the value of life. As presented in the text, the Jones-Lee Approach, the relationship between wages and risk, and the study with the smoke detectors, all show that even with health, as with material consumer products, people will purchase more when the price is cheaper. People actually place a higher value on life when the means of “saving” that life are cheaper.

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The limitations to this type of analysis are that money and numerical figures are not the only way people assess the value of life. Placing a monetary value on life depicts how people react to prices as they do with all goods they purchase. There are many other ways, however, to measure how much you value your life. Obviously, good health is a major factor of being happy and satisfied with your life. However, people also place family, friends, and self-realization very high on the list of value.

Every year, the United States allots a limited amount of money that may be spent on health care. Not everyone can be saved and cured, and the decision on who is, is left up to those in charge. The fact is, different people have different views on whose life should be valued more. Some may want to save a young child who hasn’t had a chance to live their life over an elderly person who has lived a long fulfilling life. Others, however, would place the elder higher because they are wiser and more experienced, while the young child still doesn’t know what is happening. I would predict that most people would choose the first option.Economics of Health Care Essay

The value of life is very important to society today. It is important in every profession, culture, and home.

All of us might want to lead long, healthy lives. What’s more, given the chance, we would like to do as such while never persevering through the specialist’s surgical blade, the medical caretaker’s needle, or the dental specialist’s bore. However great health comes so effortlessly too now and then. Accomplishing a long, healthy life regularly requires the contribution of rare assets or energies, and in any event at least to a certain extent it becomes a monetary issue.

Around one out of each six dollars spent in the U.S. economy goes to some type of healthcare such as spending on doctors, their attendants, dental specialists, or on doctor’s facilities, pharmaceutical medications, and medicinal research scholars. Understanding the cutting edge economy, hence, requires the know-how as to the economics of healthcare.Economics of Health Care Essay

We start this module such as economics of healthcare by looking at a portion (division) of the financial powers that shape the healthcare framework. However, these deviations or concentrations on economics of healthcare frequently call for government strategies to guarantee that healthcare assets are designated effectively. What’s more, without a doubt, in many countries, governments are profoundly engaged with healthcare markets. Subsequent to talking about the powers at work in healthcare markets, we take a measure at some key actualities that portray the healthcare framework in the United States. The healthcare framework today is altogether different from what it was fifty years back, and it is likewise not quite the same as the healthcare frameworks in different countries. Perceiving these distinctions is critical for understanding the healthcare framework we have and additionally to envision frameworks we could have. The best possible extent of government mediation in the healthcare framework is a theme of proceeding political discussion on economics of healthcare.Economics of Health Care Essay

Essay writing on economics of healthcare requires a deep knowledge about the government schemes of healthcare activities as well as economics. Essay writing on economics of healthcare requires further the basical research points about the possible health care activities. Essay writing on economics of healthcare also requires indeed the knowledge of the rates of the health care products.

Further to do such Essay writing on economics of healthcare, the knowledge about the Special Characteristics of the Market for Healthcare is highly required. We are the scholars in such know-how. Hence, to speak on or to do the Essay writing on economics of healthcare, approach us. Rather we are the great scholars touching the Essay writing job oft on economics of healthcare.Economics of Health Care Essay

Like different markets, the healthcare advertisement has purchasers (patients) and makers (specialists, medical attendants, and so on.). 1.The primary investing individuals are the purchasers and venders in the market: both invest, so to say. 2. Purchasers are great judges of what they get from dealers. 3. Purchasers pay merchants specifically for the products.4. Market costs are the essential instruments for the marketing members. Such is the model designed for the health care products may be.Economics of Health Care Essay

Analyzing the uncommon highlights of this healthcare market is a decent beginning stage for understanding why the service touching the health care assumes a vast job in the arrangement of healthcare and why health approach is frequently unpredictable and vexing. To do the essay writing on the economics of healthcare, we should have realized even concretely as to the reality of the healthcare market.

If the effect on the onlooker is unfavorable, it is known as a negative externality. In the event that it is helpful, it is known as a positive externality. Within the sight of such externalities, society’s enthusiasm for a market result stretches out past the prosperity of purchasers and venders who take a serious interest in the market for their sake as well as to incorporate the observers who are influenced by the same implication.Economics of Health Care Essay

At the point when a doctor makes sense of another approach to treat an illness, that data enters society’s pool of restorative learning. The advantage to different doctors and patients is a positive externality. Without government intercession, there will be too little research. Governments react to this externality from numerous points of view. Now and again, the government service or body concedes the analyst (here the doctor with the new approach) a patent on the new item, just like the case with new pharmaceutical medications. The patent gives an impetus for research on the grounds that the patent holder can benefit from the very patent. The patent is said to disguise the externality. However this methodology isn’t appreciated much, for this model is costly. It is costly to promulgate or bring into practice and then costly for the patients either. That is, the high cost might be especially hard on lower-income patients.Economics of Health Care Essay

The yearly Spending
The yearly spending plan of the National Institutes of Health, which supports restorative research, is over $30 billion, or about $100 per individual. Healthcare is extraordinary. When you become ill, you may not comprehend what the best treatment is. You depend on the counsel of a doctor, who has long stretches of particular preparing. Furthermore, even with knowing the past, you can’t dependably decide for yourself whether the treatment the doctor offered you was the correct one. Once in a while cutting edge prescription neglects to enhance a patient’s health. Furthermore, given the common therapeutic intensity of the human body, the wrong treatment can now and then seem to work. The powerlessness of healthcare buyers to screen the nature of the item they are purchasing prompts different controls. Most critical, the administration requires doctors, dental practitioners, medical attendants, and other health experts to have licenses to hone. These licenses are conceded simply after an individual goes to an affirmed school and finishes thorough tests or exams. Those discovered practicing without a permit can be detained. Likewise, the Food and Drug Administration (FDA) regulates the testing and arrival of new pharmaceutical medications to ensure they are protected and viable.Economics of Health Care Essay

A doctor’s recommendation should be founded completely on the patient’s best advantage, not on the doctor’s advantage rather. At the point when patients accept the counsel, they depend on a level of trust, which is regularly encouraged by long-term connections among specialist and patient.

Healthcare is unique. Healthcare is seemingly a human right. Somehow or another, healthcare resembles sustenance. Nourishment is important to endure, and as a general public we attempt to guarantee that everybody has the assets to get the sustenance they require. The significance of health protection, regardless of whether given by privately owned businesses or the legislature, necessitates that the market for healthcare work uniquely in contrast to most different markets in the economy.Economics of Health Care Essay

To do the essay writing on healthcare economics, one essay writing champ needs must have all the thorough knowledge about the safety health measures that the private as well as government sectors do take for the sake of the general folks. To do such an essay writing course on such a topic as healthcare economics, we are here otherwise and we are the great scholars regarding. We ourselves do this essay writing on healthcare economics to guide you specifically. Further you want the guidance means approach us with all your look out and we will guide you most excellently rather. We are here exclusively for you, so to say. Do all your research touching the health care and the economics as to led by us, and thus without a worry or botheration indeed. Healthcare products are many as a hoard and amidst to choose the best also we are here and there may be. Hence, approach us for your essay writing on healthcare economics, so to say.Economics of Health Care Essay

The health sector commands a substantial share of the economy’s resources and health is an important public policy issue. Health economists, however, are in short supply. A qualification in this field offers employment opportunities in both the public and private sectors.

As South Africa embarks on the road to national health insurance, there has never been a greater need for economic analysis and evaluations of national planning and decision making in the public and private health care sectors. While health economists have performed an essential role in health policy decisions abroad, there is still a shortage of health economics expertise in South Africa and Africa.Economics of Health Care Essay

There is a growing need and demand therefore for health economists, even more so in the context of the short- and longer-term impacts of the COVID-19 pandemic that will play out in South Africa and beyond in the coming years. This scenario also presents health economists with the opportunity and responsibility to contribute to the task of re-engineering the post-COVID-19 health system.Economics of Health Care Essay