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Econ and Health Policy

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Economics and Health Policy
Teri Rice
MMHA 6135-2; Health Policy and Economics
Dr. Attila J. Hertelendy
March 8, 2015

Economics and Health Policy The health care industry is growing and changing every day. Many would say that are healthcare system is in complete turmoil. However, all health organizations need to be aware of the economics behind the scenes and what contributes to their losses and growth. Health care economists develop the policy that we operate by each day while providing efficient and effective care. The purpose of this paper is to discuss health economics and the importance in government involvement.
Value of Understanding Health Economics Economics looks at the allocation of resources. As a health care manager, I will be able to make decisions based on data, the resources available to me, have a sense of costs, think about the value, and understand the operations within the organization. Managers need to understand their department costs and explain any variances that may arise. Many organizations will rely on economic assessments to assist in determining the need for programs in their area. These assessments align with the health policies. It is crucial for hospitals to understand these assessments when evaluating prevention programs, diagnostics, intervention programs (drugs and surgical procedures), organization of care and rehabilitation. (Husereau, et al., 2013) Another reason for understanding health policy is related to non-profit organizations. For these organizations, there are multiple goals for multiple managers. They operate under many regulations designed to prevent tax avoidance schemes. (Unknown, 2015) If a project fails, the organization has difficulties allocating those failed funds into a different resource. Executives need to understand the importance of the economics and healthcare policy to make the best

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