Terms Comparison Paper
June 9, 2013
Terms Comparison Paper
Economics is the study of how people make choices when they want to utilize resources (American Economic Association, 2011). Thus, this fundamental process links economics and health care, as health care professionals use economic principles in their everyday professional behaviors. Health care organizations strive to use the same concept of economics when they choose how to allocate resources and plan how to use them because it is essential to their survival. Therefore, health care and economics are connected in the sense of sharing the same terms such as resources, quality, and cost. The objective of this paper is ...view middle of the document...
Because economics is about making best choices, every decision to produce, buy or sell is influenced by the quality of the product (Bowbrick, p. 1, 1992). People always search for the best quality of product. In healthcare, quality is considered the supreme need for a sick or hurt patient who wants to live healthy and with no pain. Therefore, health care organizations strives to provide health care services at the right time, using the appropriate treatments, tests, and procedures in order to achieve the best possible results (Agency for Healthcare Research and Quality, 2005). This term usage is thus similar for economic as it is for healthcare as it is used to refer to the best of something.
Nothing we get or produce is for free. Every product or service produced has a cost. In economics cost is defined as the sacrifice or funds involved in performing an activity, making a product or following a decision or course of action. While cost in health care means the funds that the patient needs to be able to access and receive health care services. Thus, the term of cost is different as used in economics as compared to healthcare.
Analyzing costs is very essential for the organization to survive. Decision makers, economists, managers, and health care providers analyze costs with respect to resources and quality. For example, a health care organization wants to implement an electronic medical record (EMR). Therefore, they must first allocate the resources needed to successfully implement, will the implemented EMR achieve the quality expected, and will the cost be acceptable as it will increase the revenue in the future. In other words, is it worth it? This is the decision that...