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Hcs 440

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Healthcare and Economics
Charde Allen
HCS 440

Healthcare economics is the process of basically studying the way healthcare functions as well as health related behaviors. Throughout time healthcare economics have sufficiently changed due to technology and more advanced ways of research. As time passes healthcare economics have become more and more vital with change for future effort. Consumers play a role in the change due to findings and new diagnosis. The value of health care in the society is very important to the consumer because the determining factor of the future of healthcare rest upon the costs, treatments, and advancements within healthcare. All this tied together is the ground function of economics in the healthcare field. The importance of knowing terms and what they are in healthcare economics are also vital to understanding the importance of it. In order for healthcare organizations to function, they have to know the meaning of supply and demand. This is when the relationship between two factors determines the price. The flu shot would be an example of supply and demand. The flu shot is popular and is used every year around a specific time. They know the demand for it is huge so the supply would have to be bigger. Another important term would be microeconomics. This is focusing on price aspect of the economy while paying attention to the price costs of a firm. This basically the decision making process. This determines the choices that are picked from a buy to a seller. Macroeconomics means a more broad approach to dealing with the general aspects of the economy. This focuses on employment rates, income, change and growth within the economy. These two terms are tied together because they focus on healthcare economics from the buyer and the seller’s point of view. Another important term would be elasticity. This is responsive to change and it...

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