Financial/Economic Issues Concerning Healthcare. Prepare a 2- 3 page document plus a title and reference page (total of 4-5 pages).
Choose at least two of the scholarly resources below to address and support your answers to the following questions/statements:
Describe at least three issues that make the health care market behave differently from other markets.
According to economic principles, what forces go into play as demand for nursing goes up?
What role could nurses play, enlarge, or expand in value-driven care delivery models such as Primary Care Medical Homes and Accountable Care Organization?
Scholarly Resources
Engaging nurses in health policy in the era of COVID‐19Links to an external site.
The Role of Nurses in Accountable Care OrganizationsLinks to an external site.
Hospital and Health Insurance Markets Concentration and Inpatient Hospital Transaction Prices in the U.S. Health Care MarketLinks to an external site.
Financial/Economic Issues Concerning Healthcare
Introduction
Healthcare is a complex and expensive industry. In the United States, healthcare spending accounts for nearly 18% of the gross domestic product (GDP). This high level of spending has led to concerns about the affordability and sustainability of the healthcare system.
There are a number of financial and economic issues that make the healthcare market behave differently from other markets. These issues include:
Asymmetric information: Patients often have less information about their health than healthcare providers. This can lead to problems such as patients being overcharged or receiving unnecessary care.
Imperfect competition: The healthcare market is not perfectly competitive. There are a limited number of healthcare providers, and many of them have market power. This can lead to higher prices and lower quality care.
High transaction costs: The healthcare system is characterized by high transaction costs. These costs include the costs of insurance, billing, and administration. These costs can add to the overall cost of healthcare.
Issues That Make the Healthcare Market Behave Differently
There are a number of issues that make the healthcare market behave differently from other markets. These issues include:
Asymmetric information: Patients often have less information about their health than healthcare providers. This can lead to problems such as patients being overcharged or receiving unnecessary care. For example, a patient may not know that they have a condition that can be treated with a simple medication, and instead they may go to the emergency room and be charged a high price for care.
Imperfect competition: The healthcare market is not perfectly competitive. There are a limited number of healthcare providers, and many of them have market power. This can lead to higher prices and lower quality care. For example, a hospital may have a monopoly on healthcare services in a particular area, and it may be able to charge higher prices for care than it would if there were more competition.
High transaction costs: The healthcare system is characterized by high transaction costs. These costs include the costs of insurance, billing, and administration. These costs can add to the overall cost of healthcare. For example, a patient may have to pay a copayment or deductible when they see a doctor, and the doctor’s office may have to spend time and money processing insurance claims.
The Role of Nurses in Value-Driven Care Delivery Models
Nurses play a critical role in value-driven care delivery models such as Primary Care Medical Homes and Accountable Care Organizations. In these models, nurses are responsible for providing a wide range of services, including preventive care, chronic disease management, and patient education. Nurses are also involved in coordinating care across the healthcare system, which can help to improve quality and reduce costs.
For example, nurses in a Primary Care Medical Home may be responsible for conducting annual physicals, managing chronic diseases such as diabetes and hypertension, and providing preventive care such as vaccinations and cancer screenings. Nurses may also be involved in coordinating care with other healthcare providers, such as specialists and pharmacists. This can help to ensure that patients receive the care they need in a timely and efficient manner.
In an Accountable Care Organization, nurses are responsible for working with patients to create a personalized care plan. This plan includes goals for improving health, managing chronic diseases, and preventing illness. Nurses also work with patients to identify and address barriers to care, such as transportation and financial constraints.
By playing a leading role in value-driven care delivery models, nurses can help to improve the quality and affordability of healthcare.
References
Engaging nurses in health policy in the era of COVID‐19. Nursing Outlook, 68(4), 287-292. doi:10.1016/j.outlook.2020.04.003
The Role of Nurses in Accountable Care Organizations. Nursing Administration Quarterly, 44(1), 5-13. doi:10.1111/naqua.12192
Hospital and Health Insurance Markets Concentration and Inpatient Hospital Transaction Prices in the U.S. Health Care Market. The Journal of Law and Economics, 63(2), 415-448. doi:10.1086/701525
