Analyzing Health Care Through the Eyes of the Economist Essay

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Health Care Through the Eyes of the Economist

The health economics discipline holds great value. Economics is based on the assumption that resources available will always prove inadequate (i.e., scarce) when it comes to comprehensively satisfying human desires. This theory underlies all aspects of economics. Consequently, resource utilization in any one area implies, inevitably, that these cannot be used elsewhere, and that, the profits that could have been gleaned from their utilization in these other areas have to be sacrificed. Clinical research administrators are constantly making choices with regard to how they must allocate time, the activities into which their energies ought to be channeled and where to spend the funds available to them. Making choices is fundamental to their profession. Health care providers are increasingly faced with very emotive and powerful choices. Health economics fails to solve these tricky and challenging problems. Instead, it offers a way of thinking, which may aid in attaining potential solutions to such frequently-contentious issues. Its aim is: identifying which service bundle or package would offer maximum health benefits to society, considering available resources. The adoption of techniques from health economics may aid with decision-making in this regard, but must always form only a component of a complex process, considering other factors. This healthcare dilemma is experienced by nearly every healthcare system. It represents a small-scale version of the primary economic issue faced by all persons, institutions, and communities -- that of merging infinite demands, wants, and needs with limited resource (e.g., time, funds and expertise) availability. The exponential rise in health service demand is seen to occur alongside pressures on funding institutions and governments to judiciously handle the quantity of resources at hand, for utilization by health services providers (Phillips, 2005).

Knowing the reason for the difference between healthcare services and other services/goods is unimportant. Healthcare systems' organizational structure is also liable to variation, as well as, apparently, constant reform and change (to a certain extent). Novel primary care organizations (having different nomenclatures apparent in diverse areas of devolved United Kingdom) were established for emphasizing the increasingly significant role primary care plays in healthcare planning, as well as for cooperating with secondary health care providers. Such independent trusts are in charge of a rather significant share of the National Health Services budget, while having the capacity of maintaining budget surpluses, which may then be utilized to local patients' advantage. Additionally, league table development,…

Sources Used in Document:

References

Guide to economic appraisal: Carrying out a cost benefit analysis (n.d.) Retrieved 2 March 2016 from http://publicspendingcode.per.gov.ie/wp-content/uploads/2012/08/D03-Guide-to-economic-appraisal-CBA-16-July.pdf

Phillips, C. J. (2005). Health economics: An introduction for health professionals. Malden, MA: Blackwell Publishing

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