Analysis of Overconsumption in Health Economics and Finance Report

This report analyzes an assignment on health economics and finance, focusing on the critical issue of overconsumption of medicines. The author argues that unnecessary treatments and investigations, often driven by factors like supplier-induced demand and moral hazard, pose significant challenges to healthcare efficiency and patient well-being. The report defines overconsumption, exploring over-diagnosis in cancer screening and the excessive use of medications. It discusses the role of perverse incentives, where physicians may be influenced by pharmaceutical companies, and the implications of moral hazard, where insurance coverage can lead to increased, sometimes unnecessary, care. The report also addresses the lack of information regarding potential adverse drug reactions and the impact of nurse carelessness. Furthermore, it integrates the author's conclusions, discussing the implications for health leadership and management, emphasizing the need for interdisciplinary cooperation, improved healthcare assessment, and social and traditional changes to address the issue of overconsumption. The report references various sources and payment structures to support the arguments and provide a comprehensive overview of the problem. It concludes by highlighting the societal shift towards alternative medicines due to the perceived negative effects of excessive medication, which could potentially lead to a loss of health and wealth.

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

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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

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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

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physiological condition of the patient. As a result, the condition get worsen. The article has
no overview on this specific ground.
Author’s implication for health management and leadership:
According to (Jansen et al.2016), the biggest category of the article recognized related
to over-diagnosis, more or less often on the matter of cancer screening programmes. Over-
treatment happens when ailments are diagnosed that diseases had remained undiagnosed
would not for a moment have resulted physiological damage, having impact that patients are
figured to inappropriate services for that damages overweighs advantages. Certain authors
discuss the puzzle about unnecessary treatment, or the requirement of injurious clinical
treatments or interventions that deliver minor benefit. Therefore the injury outweighs each
and every advantages in legally each and every matter. The definition is extremely adjacent
with definitions of over-utilization. Overuse can be dictated by the commissionable dispute
into which treatments consider with a little advantage to risk the profile are given at the
individual from suffering lists. A very nearly related thinking, that starts with unorganized
formless scene of valuable cost which, reduces value care. It can be described shortly by
telling that nothing is more crucial than regular practice and care is a invisible mind state to
give minimal or no efficacy on average (Caverly et al. 2014).
Now, the other sub topic of continuity of argument is that there are certain patient
who have a panic of taking medicines each and every day. If any medicine is finished then
those medicine addicted patient behave like that without that specific tablet or capsule or
syrup their physiological condition will get damaged. They are then more prone to the having
or recurring of the disorder. Because of having this type of panic those patient have some
mentally misbalanced condition. If that patient see in the prescription that the physician only
prescribe one or two medicine then they will start over-react(Greenhalgh et al. 2014 . They

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sometimes provoke their doctors for prescribing a lot of vitamin tablet, calcium tablet,
headache removal medicine and sleeping tablet. This can be fixed by a strict doctor or a small
medical team.
Author has clearly stated the definition and specifications 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
medicines in the market are not beneficial for a particular patient (Berwick 2016). Different
patient has different physiological phenomenon, different phenomenon needs different
demand. For the demand of the different patient different supply must be required. Therefore,
drugs are varied with their dosage from. Also, dosage must be altered by aging. Adult dosage
should be different from child dose. If an adult takes medicine of low dose or child dose then
his/her complication will not be cured. On the other hand, if the child was given an adult
dose, then due to overdose the health of the child will be deteriorated. This can be termed as a
pharmaceuticalisation (Lynch and Owen 2015).
Medicines are produced in the production house of a registered manufacturing
company. From there it supplies to dealer’s storehouse. Now it can be observed that a dealer
store a particular brand of medicines for his own profit. Because, he has to earn commission
from the particular brand. Then, the dealer tries to convince the physician for supplying his
medicines. The dealer tempts the doctor that, he will give the physician a huge incentives
(Malhotra et al. 2015). As a result, if the physician will agree all the terms and conditions of
the dealer, the patients will be suffered.

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The report is used to recognize the separate provider payment mechanisms and
various folds of utilization. Two present reviews give fine overviews of general patient care
provider payment structures and certain impressions all the patients can have on utilization
rates in both primary health care and hospital systems (Greenhalgh et al. 2014). In other
terms, they notify that how line-item or worldwide budgets and salary payment systems
inspire under provision; capitation-based systems. Eventually, they clarify that various
payment methods of provider are often related with various arrays to endeavour to sooth
some different negative effects that processes can fetch. However this paper does not shed
light on that matter of the society where people want to relief from too much medicines only
for too much costing. They also think that medicines mean drug and chemical. Now large
uses of chemical continuously can be altered the physiological equilibrium of the individual.
Not only that but also certain individuals are aware of the accumulation of those chemicals in
their body, which sometime causes adverse reaction and may lead to death (Macdonald and
Loder 2015). As a result people are now losing their faith on the traditional medicines.
Dependence is now increasing on ayurvedic medicines and homeopathy. In the present
generation and also in case of coming generation loss of faith in too much medicine will
misguided the civilization in taking major necessary medicine. Hence, it may results a loss of
health and wealth.
This proposal of adhesion of economic aspects proposes crucial steps for
interdisciplinary cooperation; hints positively important points regarding health care
assessment and health technology management policies. Also, discuses that social and
traditional change might be essential to attain serious lifts in clinical research and
management.

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References
Berwick, Donald M. "Era 3 for medicine and health care." Jama 315, no. 13 (2016): 1329-
1330.
Caverly, Tanner J., Brandon P. Combs, Christopher Moriates, Neel Shah, and Deborah
Grady. "Too much medicine happens too often: the teachable moment and a call for
manuscripts from clinical trainees." JAMA internal medicine 174, no. 1 (2014): 8-9.
Ellison, Nicole B., and Danah M. Boyd. "Sociality through social network sites." In The
Oxford handbook of internet studies. 2013.
Greenhalgh, Trisha, Jeremy Howick, and Neal Maskrey. "Evidence based medicine: a
movement in crisis?." Bmj 348 (2014): g3725.
Jansen, Jesse, Vasi Naganathan, Stacy M. Carter, Andrew J. McLachlan, Brooke Nickel, Les
Irwig, Carissa Bonner et al. "Too much medicine in older people? Deprescribing through
shared decision making." Bmj 353 (2016): i2893.
Lai, Wei Lin. "Paying for healthcare." In Singapore's Health Care System: What 50 Years
Have Achieved, pp. 75-94. 2016.
Lynch, Brigid M., and Neville Owen. "Too much sitting and chronic disease risk: steps to
move the science forward." Annals of internal medicine 162, no. 2 (2015): 146-147.
Macdonald, Helen, and Elizabeth Loder. "Too much medicine: the challenge of finding
common ground." (2015): h1163.

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Malhotra, A., D. Maughan, J. Ansell, R. Lehman, A. Henderson, M. Gray, T. Stephenson,
and S. Bailey. "Choosing Wisely in the UK: the Academy of Medical Royal Colleges’
initiative to reduce the harms of too much medicine." Bmj 350 (2015): h2308.
Rowe, Ian A. "Too much medicine: overdiagnosis and overtreatment of non-alcoholic fatty
liver disease." The Lancet Gastroenterology & Hepatology 3, no. 1 (2018): 66-72.