Health Economics and Finance: Overconsumption of Medicines and Healthcare Management

Running head: HEALTH ECONOMICS AND FINANCE
HEALTH ECONOMICS AND FINANCE
Name of the Student
Name of the University
Author Note

1HEALTH ECONOMICS AND FINANCE
Author's central arguments and conclusions
Author has given a brief overview on the problem of use of the too much medicines
on a particular patient. These unnecessary treatments through medicines are not needed for
extra benefit of a patient. Sometimes, it may cause harm to the patient. But no health care
authorities are agreed to pay their attention on this serious issue (Jansen et al.2016). Even
health economists have no tension for the harmful effect due to unnecessary investigations
and care provide by the hospital authorities. In case of a hospital, the authority has already
been hired certain highly paid physicians and helping team. Sometimes, the hospital
organization tries to give extra medicines to the patient to increase the billing amount.
However, no one has no attention on the topic of overconsumption of the medicines. A
strong evidence is provided by the author, that physicians have received perverse incentives
from the dealer of a specific medicine company (Caverly et al. 2014). Also, a representative
often visits to the chamber of the physician to permit a wicked deal with the physician. They
sometime offer home appliances to the physician. This paper has shown enough proofs of
the presence of supplier-induced requirements. This novel proposes valuable scope for
interdisciplinary help; indicates potentially valuable factors in health research analysis and
health research management policies; also points out that social and traditional change is
required to gain successful movement in clinical practice. (Macdonald and Loder 2015).
Author has clearly stated the definition and features of various forms of
overconsumption of healthcare management. He has defined the overconsumption in health
care by indicating the over diagnosis in the context of cancer screening programmes. Author
has said that if certain disease cannot be diagnosed properly then this undiagnosed condition
leads to the over-diagnosis. Secondly, the author used the term ‘too much medicines’, which
has shown the excessive unnecessary expenditure regarding to the medicines. Because, all the

2HEALTH ECONOMICS AND FINANCE
medicines in the market is not beneficial for a particular patient. Sometimes, physicians
prescribe them for only just mental satisfaction of the patient, which results over-costing.
According to (Greenhalgh et al. 2014), moral hazard describes a form of misconsumption.
Where, a person having insurance get extra care but which is marginally low cost than the
uninsured patient. This extra care has a negative impact on welfare. In case of supplier
induced demand the physician always try to preserve a particular revenue on the face of
enhanced struggle. Here suppliers induce a physician to suggest only their brands of
medicines by giving the physicians high incentives.
Lack of information
The article lacks of some factors that contraindicate the usage of drug. Drugs are
medical substance, which are constituted of chemical substances. This paper has not pointed
the specific adverse reaction of a drug. If anyone use a drug through a long time even after
recovery, then the unnecessary accumulation of the drug in the patient’s body may cause
harmful effect .This harmful effect leads to rise a new disease (Rowe 2018). However,
patients have no wish for the developing of new diseases from overconsumption of drugs.
This factor was not described properly in this article. Also, moral hazards did not shed light
on the capability of the treatment of poor people in multi-facility hospitals. In those hospitals,
payments structures are very high that both poor and middle class people face lot of
financial problems even they have any medical insurance. Therefore, it can be clearly
revealed that every time medical insurance has not a such level of beneficial effects as one
will think (Ellison et al. 2013). The article does not notice at the carelessness of a nurse.
Because, sometimes overdosing of a particular drug is occurred by an irresponsible
administration of wrong dosage. Here the excessive dosage of certain medicines hamper the