Download Health Care Economics: Principles and Tools for the Health by Thomas Getzen PDF

By Thomas Getzen

Changing into a supervisor of a healthiness care association calls for a vast figuring out of the sphere. This features a robust seize of the economics enthusiastic about the day-by-day operation of the association. supplying an obtainable creation to special monetary options within the box, this publication might help readers achieve the information to run a firm. Getzen breaks down tough subject matters whereas explaining the significance of economics within the functionality of the wellbeing and fitness care approach.

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Additional info for Health Care Economics: Principles and Tools for the Health Care Industry

Sample text

6 Medical care clusters more services toward the public end than is immediately apparent. Even though each of us goes individually to the hospital emergency room, in a small city, we must all go to the same emergency room, and we therefore get pretty much the same quality of care. In a large city with many hospitals, there is somewhat more variation, but patients are rarely able to choose their surgeon, nursing staff, or room. Contrast that with the purchase of a coat, a birthday cake, or even a wheelchair, in which case there are many more choices and there is much more individual control over quality.

When any of these factors take on greater or lesser importance, they affect how much money flows through the system and to whom it flows. Economists readily acknowledge that health involves more than money, but a few health principles fall within the economic realm. For instance, it’s true that health is priceless, but how much money we have often plays a large role in determining our health. The final section of this chapter touches on these and other health principles related to the field of economics.

As more and more is done, a point at which the benefits of each additional step become smaller and smaller (diminishing marginal returns) is usually reached, and the costs of an additional unit become greater. Maximum net benefits are obtained by pushing to the point at which rising marginal costs equal falling marginal benefits. The demand curve is a marginal benefit curve that traces how much each additional unit of service is worth. At a price of $1 million, the artificial heart would be implanted only in people who believed they would receive more than $1 million in benefits.

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