Economics and Healthcare

Economics and Healthcare

Economics

Economics is that branch of social science which deals with the production, consumption and distribution of services and goods in a society.

Economics & Healthcare

If we look at economics and healthcare we will find that these two are strongly related to each other. For instance, if there is an emergency and the healthcare organization has not enough resources to deal with that particular emergency situation than it this situation can become a threat to the existence of the organization. In this condition it is important that the there should be enough resources available to the organization which can meet its need. Economics teaches to manage the resources in such a way that there is availability of enough resource which can help the organization to survive in difficult condition. The theory of production and consumption help the organization for this planning. We can relate this phenomenon with the effective and efficient use of resource so that the organization can have enough resource during the emergency which can meet their needs (Santerre & Neun, 2010).

Supply and Demand

Demand and supply mechanism is very important to be balanced in healthcare organizations. For instance, if an organization is in need of 100 nurses to look after 500 bed / patients and at that time they only have 85 nurses than it will be hard for the nurses to provide their services to the patients in an effective and efficient manner. Same is the case with medical equipment and medicines. In case if the healthcare organization does not have required medicines for their patients on time than it can lapse the whole organization and they may get into trouble. This trouble can cause shutdown of healthcare organization. One must have to pay the opportunity cost in order to gain benefit from another resource. If ...