Question

Analyze the economic effects of policy changes in a healthcare organization

Answer 1

                                    Health and economy share a vital relationship. A healthy nation has an added advantage of having stable population who are productive which would add to the economic stability of a nation. In turn, an economically stable nation always invests more in the healthcare sector so as to maintain the populations’ productivity. Thus in this context we can see that definitive policy changes in the healthcare sector would have profound and evident impacts on a nations economy.

                                    A study conducted by the WHO says that better policy decisions in the healthcare sector has the following advantages in an economy

· It has positive impact on the economic performance on the other sectors in the national economy through the jobs it generates.

· It plays a major role in reducing social exclusion at the local level due to its impact on employment, working conditions and household income.

· It is essential in determining the economic performance and stability of a nation.

· By enhancing employment, training and purchase functions, it can drive the implementation for achieving sustainable development goals of a nation.

· It helps in sustaining the regional economy by providing a better healthy environment.

· They helps in improving the skill base in regional and local labour markets.

· By proper organisation of the healthcare sector, social cohesion can be improved and inclusive development can be achieved

· An increase in the health expenditure is more likely to result in an increase of household income.

                                      The above mentioned are some major results of the study conducted by WHO on the reorganisation of health sector in an economy and the effects it have on the economy itself. Thus is can be concluded that an optimal healthcare allocation functions as an added advantage for an economy as it contributes to the development of various sectors in an economy thereby stabilizing the economy itself.