Question

Describe the three basic tasks of healthcare economics. Explain each one with examples of tools and techniques used to evaluate it. Consider that you are a consultant with a firm that has been selected by your state government to evaluate the economic state of healthcare. How would you initiate and manage your evaluation?

Answer 1

The three major tasks of economics are description, explanation and evaluation. Description:is the fundamental task of economics and it includes the identification,definition and measurement of any phenomena. Through this task we can have the idea aboutthe existing facts. This task is mostly related to facts finding. For instance, in America, in1992 the average of 65 years older people visited physician’s office was 5.5 times each yearand the average of 15 to 22 years old people was of 2.5. This statement will fall under thecategory of description. The process of description helps the organization in betterunderstanding of what is happening in the company at each level that later help inimprovement.

Explanation:

the second task of economics is of explanation and prediction of certainphenomena. In this task there is cause and effect analysis is done. An example of explanationtask is that why people of 65 years older and more use more medical care than youngerpeople. This task helps the organization on identifying causal factors so that it can analyzehow much these factors are contributing to outcomes.

tools and techniques

Supply

The supply side of the market is analysed in economics in two separate but related ways. One is related to the resource input and goods output model outlined above, looking at how resource use, costs and outputs are related to each other within a firm. Some of the issues that this illuminates concern efficiency in production, which will be discussed below. Others include issues such as economies of scale - for example, are there any cost savings through having larger general practices?; productivity - for example, how many more surgical operations can a hospital provide if it hires an extra nurse?; and factor substitution - for example, does allowing dental hygienists to replace dentists in undertaking certain tasks lower the cost

Demand for health care, demand for health and need

If we are considering the market for health care, we will be interested in the demand for health care. However, in considering this demand, it is important to recognise that health care has special characteristics that may make it different from other goods. One factor is that health care is not usually demanded because it is in itself pleasurable; in fact, it may be unpleasant. Instead, it is demanded mainly to improve health. So, even if health care is in itself unpleasant, it leads to more pleasure than would otherwise have been the case.

For example, a person may want nutrition supplements, even though these will not produce any health improvements for them; or they may not want a visit to the dentist even if it would improve their oral health.

Evaluation:

the third task of economics is evaluation that focuses on analyzing and makingjudgment about the alternate phenomena according to some standard. First standard is chosenthen it is used to rank the alternative means of distribution of resources that are scarce thatleads to desired outcomes. This helps in creating a natural process and generating funds forthe benefits of health care services.

Initiate and manage my evaluation by following these steps perfectly Comprehensive services across the care continuum Cooperation between health and social care organizations Access to care continuum with multiple points of access Emphasis on wellness, health promotion and primary care

Patient focus Patient-centred philosophy; focusing on patients’ needs Patient engagement and participation Population-based needs assessment; focus on defined population

Geographic coverage and rostering Maximize patient accessibility and minimize duplication of services Roster: responsibility for identified population; right of patient to choose and exit

Standardized care delivery through interprofessional teams Interprofessional teams across the continuum of care Provider-developed, evidence-based care guidelines and protocols to enforce one standard of care regardless of where patients are treated

Performance management Committed to quality of services, evaluation and continuous care improvement Diagnosis, treatment and care interventions linked to clinical outcomes

Information systems State of the art information systems to collect, track and report activities Efficient information systems that enhance communication and information flow across the continuum of care

Organizational culture and leadership Organizational support with demonstration of commitment Leaders with vision who are able to instil a strong, cohesive culture

Physician integration Physicians are the gateway to integrated healthcare delivery systems Pivotal in the creation and maintenance of the single-point-of-entry or universal electronic patient record Engage physicians in leading role, participation on Board to promote buy-in

Governance structure Strong, focused, diverse governance represented by a comprehensive membership from all stakeholder groups Organizational structure that promotes coordination across settings and levels of care

Financial management Aligning service funding to ensure equitable funding distribution for different services or levels of services Funding mechanisms must promote interprofessional teamwork and health promotion Sufficient funding to ensure adequate resources for sustainable change