Health Care Economics

This student has learned a lot from this health care economics class. The content of this class can help this student in a profession as a Health service administrator by playing a crucial role in making critical decisions every day that help improve their patients’ lives. They are responsible for the planning of health services, directing and coordinating while working closely with medical staff to improve the quality of patient care (Vieira, 2016). Being responsible for ensuring that the health institutions have funds and well organized, the economics knowledge helps the administrators in making critical decisions on how to raise fund for health, reduce barriers to accessing fund, and ensure efficient and equitable use of funds (WHO, 2018).

Development is critical in any institution and a good organization of finance determines whether the health services will be available for everyone or if the people will afford the services
Through the economics knowledge, the health administrator can access affordable sources of finance and plan on developments which will ensure availability and affordability of health services (WHO, 2018).

The knowledge of the alternative forms of financing and organizing of health services further helps administrators in organizing different kinds of cost-effective projects that can be undertaken by the institution. Moreover, the information can also be used in making decisions regarding the cost of health service provided by a health facility in an effort of ensuring that the services offered are of high quality and affordable to all. Further, a clear understanding of the socioeconomic factors such as the level of education, income, and unemployment rates is essential in enhancing proper resource allocation which will ensure that patients get quality services irrespective of their socioeconomic

status.
In the US healthcare system, some of the government agencies such as the Department of Health create regulations that govern the process of service delivery and provide services such as funding to institutions in the healthcare sector. Additionally, the outcome of the government decision will alter the structure of organizations and the reimbursement, change in practitioner and eventually how the patients are treated. Health service administrator’s knowledge on the impacts of the government agencies helps in the organization of the health institution to ensure quality service while providing the achievement of the organization long and short-term goals, as well as the government’s. Regarding the demand, supply, cost-benefit analysis and the marginal analysis theory of capital, a clear understanding will enable the administrator to adopt the measure that aims at mitigating the uncertainties for patients due to the unpredictability of the market conditions.
The community health is affected by physical, behavioral, and biological factors (National Academy of Sciences, 2013).

For example, apart from the fact that stress is linked to cardiovascular disease, research reveals that other diseases can be attributed to the mental condition including issues with the nervous, endocrine, and the immune systems. A better understanding of such factors by the health service administrator helps in making crucial decisions on the quality of the service provided by the institution depending on demographic data that reveals the trends in individuals’ status. Also, the administrator can use the information the health trends of communities to efficiently allocate resources to various units. In the US, the economic institutions are a competitive market and the Federal Reserve System (Cohen & Pisani-Ferry, 2015). A good understanding of the economic institutions helps a health service administrator in making development and organizational decisions such as determining the volume and timing of purchasing medical

supplies.
Healthcare statistical economics analysis is essential for a health service administrator in making decisions on how to allocate resources. For example, uncertainty about the cost and outcome data affect how decisions are made. As a health service administrator, it is essential to understand and evaluate the statistical data to ensure that resources are appropriately allocated for the adequate service provision and minimize on wastage. Health insurance is vital in paying for medical expenses regardless of whether they are private, public, or social plans. Government-provided insurance program in the US includes the Medicare and the Medicaid (Berdine, 2013). For a health service administrator, it is crucial that they understand the role of the government in regulation and financing of the health insurance which help in the allocation of resources in various departments to ensure that all can access and afford the services. Not only will this class help this student professionally, but personally as well. Everything learned form this class can be used to this student’s advantage when it comes to any relation of health care.