Health Care Economics Assignment Help

This activity will help you achieve the following learning components: 

• Research economic and financial aspects of health care decision making. 

• Apply graduate-level skill in critical thinking, research, and writing. 

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Introduction

Dynamic environment prevailing at health care organizations does consistently force several pressures in operating as per the needs, the most pressing of issues which the health care organizations face at present are related with the financial aspects. Dynamic changes in the market are readily impacting the budget and other economic elements of the organization. Expenses related with the wages of the health care professionals, budget sanctions related with the health care equipment and other compliance procedures, Electronic health recording system migration etc do adding upto the current scale of costing in the organization. Not only on the organization level, due  to the changed health care policies, the federal government budget allocations also changed a lot and the percentage of allocation to the health care costing has drastically increased from as low as 4% to the current sanctions of almost 20% and more. It has escalated as a great fiscal policy challenge for the nation.  Health care expenses are also remarkably changed with several system dynamics. For example the costing associated with the health care is once paid from the pocket and later shifted to third party expense like the private and public involvement and later the share of the government has increased drastically with government policy changes. The key change in the form of managed care and continuation is a remarkable factor.  The past series of decades in United states can be marked as golden age for the US health care industry due to several factors like increase in the share of the third party to about 90% of the total medical billing (private and government insurance), increase in the quality of the health care, improvement in the options available for the health care like the number of drugs, physicians, specialists etc. But still there is need to improve more rationally the quality of the health care in terms of financing, organizing and delivery of the health care (Fuchs, 2012). 

Some observations on health care economics

-  The principles of demand Vs price actually does not apply for health care pricing as the guiding principles are totally different in this case. With increase in the demand for the medical services, the prices of the health care need not necessarily come down without compromise on the quality of the services. Health care market is highly insensitive for patients about the prices which they actually pay for the services, due to the involvement of the insurers in between. Typical characteristic of the health care market include, that the health care markets are different from other hypothetical market conditions, Doctor-patient relationships make up vital non-market force in health care, further prices are set by the payers but not by the demand in the health care sector(Guinness & Wiseman,2011). 

- Vertical integration(Baker et al.,2014) has capacity to improve the quality of health care as well can contribute for improving the overall communication across the health care set-up, however ironically the health care system at present with vertical integration got spoiled due to market power and subsequent rise in the prices and spending for privately insured patients, 

- The limited competition among insurers creating unique atmosphere in the health care industry.

Insights and implications to the case analysis:

The pressing problem and relation of the same to the economic concerns

The key challenge of the organization is loss making and the financial returns are not as per the actual investment and operational costs the organization is facing at present. This is sole cause for employee turnover, loss of specialist talent as well fall in the quality of the health care as well. The following description does work on for further evaluation of the case and will provide with detailed analysis of the case and solutions are suggested as well.

The key findings:

- The key challenges being faced by ABC Health care private limited are well understood from looking at its operations from the economic perspective from the above key factors.  At the outset, the total prices of the health care industry are shooting up due to the fact that the cost of the acquiring the best in class talent in the industry is shooting up. The remunerations demanded by high quality specialist health care employees are really quite high and hence is really contributing to the financial challenges to the organization. 

- The cost of the utilities and other support services needed by the health care are shooting up and this in turn is making lot of burden on the care costs.

- The insurance and related reimbursements are contributing only to the fraction of the total costs of the health care and the rest of the expenses are becoming a challenge for the health care organization to face it.

- IT and related up gradation of the health care systems, adding to the total health care system management expenses. 

- Employee turnover is high due to the fact that there is more competition available in the health care and there is good demand for better talent.

Inferences:

All these challenges manifested in the form of increase in the overall expenses and creating a great challenge to the leaders to meet the ends. 

Possible solutions

- Optimizing the current resources, spreading the service domain to new avenues like tele-medicine, infrastructure optimization for other services (related specialization) etc can reduce the overall management budget of the health care organization.

- As a whole there is considerable need for the organizational management to take up radical and rational decisions to improve the current situation of the economic conditions in the organization.