The Importance Of Health Economics In Healthcare

The value of healthcare professionals and decision makers understanding the discipline of health economics.

Healthcare professionals and decision makers understanding the discipline of health economics is very important. Health economics can be classified as a branch of health economics as it relates to the healthcare system by efficiency and effectiveness (Teitelbaum & Wilensky, 2007). Understanding the discipline of health economics help healthcare professionals and decision makers in dealing with the provision, delivery and use of healthcare goods and services. The value of healthcare professionals on evaluating cost effectiveness in the delivery of health care, evaluating the measure of the quality of services and the economic impact of

The primary potential benefits of learning about health economics related to government involvement in healthcare economics, financing, and delivery are government intervention in the market to control price, quantity, and quality of services. According to Hicks L. L. (2014), the regulation of the market by the government is to control price, quality, and quantity by direct action such as instituting price controls, establishing professional licensure requirements, or accessing and regulating the quantity of services and enforcing competitive behavior in the market. The government has the authority to intervene in the market place and influence any aspect of health care delivery. For instance, the government can control the number of health care providers, services they provide and/or even prices providers set for services. Government involvement in health economics, financing and delivery also have a strong influence on innovations and new health technologies. The introduction and use of new medical technologies and equipment for treatment are also control by government. If not controlled by the government it could lead to high usage thereby increasing healthcare

Government involvement in healthcare economics, financing and delivery can also improve economic efficiency which allows consumers to make their own choices/decisions about the services they acquire. Consumers/patients are highly satisfied if they are given the opportunity to select the services they need, rather than having goods assigned to them by someone else. Consumers will prefer selecting their taste of a goods or services out of a set of alternatives. For instance, having the alternative of selecting your own health insurance policy based on your medical examination needs or demand rather than it being assigned to you. The latter situation would satisfy more people because they know it was their