Economic Principles of Healthcare

Running head: ECONOMIC PRINCIPLES OF HEALTHCARE
ECONOMIC PRINCIPLES OF HEALTHCARE
Name of the Student:
Name of the University:
Author Note:

1ECONOMIC PRINCIPLES OF HEALTHCARE
Response 1:
According to Huang et al. (2014), it has been mentioned that the application of
economic thinking to develop an understanding about the utilization of resource use within
the healthcare organizational sector is critical and at the same time extremely challenging.
This is primarily on account of the criticalities involved in the provision of health care
delivery within a hospital setting. As stated by Posner (2014), it has been mentioned that the
major lacunae in boosting the healthcare market share relies upon the absence of
characteristics that determine a fixed market price and the underlying economic value of the
resources used within the sector. It should be crucially noted that the production theory can
be effectively used for better resource allocation within a healthcare setting. Also, it can help
in determining the level of effective resource use. The fundamental basis of applying the
principles of economy to the healthcare sector is dependent upon the data accumulated by the
epidemiologists, which help in understanding the nature of a specific disease outbreak within
a concerned population base. Further, on the basis of the collected data, the healthcare
organizations can implement effective policies to render quality services for positive patient
outcome.
Response 2:
The hallmark of a successful healthcare organization is dependent upon the quality of
the services rendered to the patient in alignment with the affordability of the treatment
charges. It is important to understand here, that the pricing of the treatment interventions and
allied services is majorly dependent upon the nature of the care. However, access to
healthcare facilities is the right of every client irrespective of their financial background. This
is majorly because imposing a monetary value on the life of the patients is against the ethical
code of conduct of the healthcare profession. Therefore, to create a balance and ensure