How do economics apply to health care??

Answer 1

Economics is the study of scarce resources. Simply put, the goal of health economics is to identify efficient uses of the scarce resources in health care. These scarce resources include: hospital budgets, physicians, nurses, hospital beds, time in the day for appointments, etc, etc.

The most basic application that health economists such as myself do are cost-analysis, cost-effective analysis, cost-utility analysis, and cost-benefit analysis. A quick example. A new procedure is developed for treating patients of a particular disease. The treatment improves life expectancy but at an increased cost. The idea is to find out if the added benefit is worth the added cost. It's all about getting the most bang for your buck.

The link is another answer I've given to this question in the past. It's is a bit more in depth.

Answer 2

Health care is a perfect example of the LAWS of economics. We do NOT have a free market system in health care, so we have a lot of problems.

However, when portions of health care segment leave the micromanaged set up, they work fine:

LASIK surgery

plastic surgery

http://www.simplecare.com/

http://www.azcentral.com/community/gilbert/articles/0923gr-erhospital0923Z12.html

In other words, keeping parasites out and allowing the law of supply and demand to work, allows for competition, reduced costs, and a successful system.

Add to that the fact that ALL universal health care systems fail, and you've got further proof that allowing doctors to practice their profession unfettered WORKS.

Answer 3

economics is defined
The branch of social science that deals with the production and distribution and consumption of goods and services and their management---
******
this means all interactions to acquire food, drugs, autos, .gasoline---require an expenditure of funds, finally====

health care cost are set by insurance companies---if they do not make money the are effected and may be forced to cease services....
any things bought or sold is a part of economics

and as my Econ. Prof explained it
"If your income
------------is exceeded by
------------------------your outgo
--------------------------one must augment their means
------------------or diminish their wants-----

you can not spend your self rich

Answer 4

They are inter-dependant. Without health, people can't work or shop.