Advanced Nursing Practice: Applying Economic Theory in Healthcare

This report delves into the application of economic theory within the context of nursing practice. The assignment explores how advanced practice nurses utilize economic principles, such as scarcity, utility, cost, and marginal analysis, to make informed decisions regarding resource allocation and patient care. It emphasizes the importance of economic theory in guiding nursing administration and enhancing the quality of care within healthcare settings. The report highlights the decision-making process in allocating scarce resources and the prioritization of patient care elements to achieve positive outcomes. Furthermore, it underscores the significance of economic theory in the development of effective nursing interventions aimed at improving patient outcomes and delivering value-based care within a patient-friendly price range. The report references relevant studies and provides a framework for understanding the practical application of economic principles in nursing practice.

Running head: NURSING ASSIGNMENT
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NURSING ASSIGNMENT
Name of the Student:
Name of the University:
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1NURSING ASSIGNMENT
How can the knowledge of economic theory be utilized by advanced practice nurses? How
can economic theory be applied in analysis of interventions?
Economic theory can broadly be defined as the theory that is utilized in the decision
making process when the available resource material is scarce. Research studies mention that
the economic theory of nursing helps in guiding nursing administration research as well as
improvisation of nursing care services within acute healthcare setting. According to a report
published by Nursing Knowledge and Theory: Where Is the Economic Value? (2019) it has
been estimated that more than 98,000 American citizens die on account of medical errors and
poor quality of care provision. The nature of hospital environment as well as quality of care
professionals determine the quality of service provision. Care professionals make use of the
economic theory to allocate scarce resources in the process of care delivery. The models is
based upon the component of human behavioural model that assumes practical feasibility, an
ability to calculate differences between potential trade-offs as well as the primary motivation
to foster wellness. The key components of the economic model as scarcity, utility, cost,
demand, supply, marginal analysis as well as themes. In a scarce resource setting, care
professionals need to undertake a decision on which care priorities would be fulfilled and
which aspects of care priorities would remain unfulfilled. Nurses typically make use of a
three step decision making process where they evaluate the amount of satisfaction associated
with each care element, make an assessment of the trade-off limiting options and make an
appropriate choice that helps in achieving a positive patient outcome (Covell, Neiterman &
Bourgeault, 2015). Therefore, it can be said that advanced nurse practitioners must make use
of the nursing economic theory to assist the patient with value based quality outcome within
the price range most convenient to the patient. Also, the concept of economic theory can be
used at the time of devising intervention by prioritizing patient care elements. The application
of the economic theory in nursing is pivotal to promote performance driven positive outcome.

2NURSING ASSIGNMENT
References:
Covell, C. L., Neiterman, E., & Bourgeault, I. L. (2015). Forms of capital as facilitators of
internationally educated nurses’ integration into the registered nursing workforce in
Canada. Canadian Public Policy, 41(Supplement 1), S150-S161.
Nursing Knowledge and Theory: Where Is the Economic Value? (2019). Nursing
Knowledge and Theory: Where Is the Economic Value?. [online]
https://www.nursingeconomics.net/necfiles/2015/JA15/190.pdf. Available at:
https://www.nursingeconomics.net/necfiles/2015/JA15/190.pdf [Accessed 29 Apr.
2019].