Economics and Health Care Research Paper Example | Topics and Well Written Essays - 1000 words

Economics and Health Care - Research Paper Example Cost-minimization techniques, for example, can be used to select the method that uses the minimum resources to produce a certain health outcome. In addition, cost-utility analysis helps hospital management and doctors to evaluate treatments on the basis of â€Å"utility-based outcome units.† Implications of Poor Health Care System As economics mainly deals with market economy concerns, applying those principles to health care while ignoring the differences between health care and traditional consumer goods can lead to certain economic and social problems. Friedman (2013) has identified some of the weaknesses of the American health care system which can help to illustrate the impact of economics on health care systems as well as the costs of a poorly functioning health care system on society. The Medicaid system is an integral part of the American health care system. Since 1960, it has provided affordable health care to many Americans who could not afford it. Insurance companie s have also contributed much by reducing the costs of health care significantly for consumers. However, Friedman (2013) states that the American health care system is not as efficient as many claim it to be. Some of the so-called reforms to the health care system reflect misunderstanding of economic forces by policymakers. Friedman (2013) argues that current reforms are transferring a greater proportion of the health care costs from the insurance companies to those who need health care, with the effect that the consumer will become increasingly price-sensitive and quality health care will become beyond the reach of many Americans. This move is founded on the misplaced notion that insurance coverage encourages people to consume more health care services than they really... This research paper outlines the particularity of applying basic principles of economic to health care. Economics is a social science that seeks to explain how society allocates its scarce resources to satisfy the demand for goods . Howewer, health care is different from conventional goods and services There are a number of ways in which health care may be regarded as an economic good. There is an absence of a â€Å"market price† that is determined by the interaction of demand and supply forces in health care Economic principles can be used to ensure that equal use of health care services is provided to people with equal health care needs Measures such as cost-minimization analysis, cost effectiveness, cost-utility analysis and cost-benefit analysis can be used to maintain high levels of efficiency in the health care system. Friedman identified some of the weaknesses of the American health care system which can help to illustrate the impact of economics on health care systems as well as the costs of a poorly functioning health care system on society the Obamacare reforms have become controversial mainly because of the increased costs of providing federally subsidized insurance plans to consumers Hospital administrations in collaboration with insurers and other stakeholders have developed a host of statistical tools to monitor and evaluate the efficient of health care processes. There exists a statistical tool that compares whether individual physician treatments are more efficient compared to physician teams administering treatments. This tool is used to determine, for instance, whether solo physician treatment compared to group physician treatment may be more effective at reducing the number of patient visits to the physician