Explore BrainMass

The Economics of Healthcare

Need help with the following. I need to debate whether or not economics apply to health care, and in what ways.
I also need to evaluate the impact of economics on the health care system and the implications of a poor health care system on a nation.
I need to select a statistical tool used to measure health economics and discuss the significance of this tool and how this tool could be used to make decisions regarding health care.
Finally, I need to discuss the relationship between this tool and economic efficiency using the statistical tool selected in the previous question.

Solution Preview

1. Do economics apply to healthcare and in what ways?

*With healthcare comes something called Health Care Expenditure (HCE) and thus connects the business of being and staying healthy with economic principals. Think about the size of the healthcare sector for any given country. Most nations are spending a large percent of their GDP ( Gross Domestic Product) on healthcare services and expenses and this in turn means that a great deal of people owe some of their income to this industry- again connecting healthcare to economics.

*Another point to consider is looking at the quality of a person's health, only someone who is in good health can earn an income in the labor market and a portion of this income is taxed and used to fund national governmental programs. Without optimal health you lose someone contributing money to the tax pool and market.

*Governmental healthcare insurance programs (Medicaid, Medicare, etc.) spend money to fund these programs thus taking a portion of the overall GDP and tax money coming in.

* The demand for medical services also plays into the economies of health care. How services are delivered, how efficient programs and/or medical technology is, and their production all effects the market and economy of a nation and its people.

* We must also look at the rules that determine the allocation of resources in addition to health care expenditure. Do the people both supplying and demanding health services have any incentives to use available resources wisely? This can drastically affect the economy of health care.

Questions to consider while writing:
- Consider how many people in the United States do ...

Solution Summary

The economics of healthcare are determined. The expert evaluates the impact of economics on the health care system. The implications of a poor health care system on a nation.