Applying economic principles to health care
| Autor: | R D Scott nd, S L Solomon, J E McGowan |
|---|---|
| Rok vydání: | 2001 |
| Předmět: |
Service (business)
Infection Control Opportunity cost Health Care Rationing business.industry Environmental economics Anti-Bacterial Agents Product (business) Health care rationing Resource (project management) Goods and services Medicine Resource allocation Production (economics) Health Resources Humans business Delivery of Health Care Research Article |
| Zdroj: | Emerging Infectious Diseases |
| ISSN: | 1080-6040 |
| Popis: | The application of basic textbook principles to understanding economic behavior in the health-care industry is not a straightforward exercise because of the complex nature of health care as a service or product. Health care is not an item that is pulled off a store shelf, placed in a shopping cart, and paid for at the cash register. The desired result cannot be guaranteed and depends on various factors, many of which are beyond the control of the health-care provider. Economic analysis is based on the fundamental notion of efficient use of available resources. Two basic points are 1) economics is about resource allocation, and 2) efficiency in resource use (getting the most from available resources) in health care can be understood by identifying production functions representing health-care services. Economics is a behavioral science that begins with two propositions about human behavior. First, human behavior is purposeful or goal directed, implying that persons act to promote their own interests. Second, human desires and demands are unlimited; however, resources are limited and cannot meet unlimited demands. Thus, the basic problem addressed by economics is how to allocate limited resources among unlimited demands. Within this context, the concept of cost in economics is based on opportunity costs rather than financial costs. Opportunity cost is the value of a resource when it is employed in its next best use. Costs are not expressed as expenses paid (or financial accounting) but as the value of lost output if resources were employed in an alternative productive process. With the focus on resource allocation, one of the main concerns in designing a social mechanism to allocate society’s resources is efficiency—getting the greatest output from productive inputs (a problem for suppliers). Another concern is product choice—determining what goods and services should be produced (meeting consumer demands). Finally, there is concern about product distribution (who gets the products produced). |
| Databáze: | OpenAIRE |
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