Comparisons of Economic Terms
Comparisons of Economic Terms
Look at health care from an economical view point and learn how economics has a major effect on the management of health care in our society. I chose the first two words on the list, resources and quality, along with opportunity cost, to discuss in this paper. In the discussion the terms will be defined and the relationship that the terms share in the view of market economics and the health economics will be analyzed. The question will be asked, “How are these three terms related and the effects they share on the health care community. Also what affects do they play in health care’s organizations economical view point?” The market economics and the health economics definition of the terms shed a different perspective on the economics of the health care industry.
The two views influence the health care industry in order to be successful and maintain the ability to serve the public. There must be a sound understanding of economics, because health care is based on finances and services; and how well the finances and services are to be managed. These terms are similar in marketing and health care but they also differ in meanings based on the situation. Economics study how people make choices for using resources and the health care organizations use the same principle. The success of health care depends on effective management of the resources. The economic resources affect the usage of medical care and its services. Terms viewed from a market and health stand point and from an economics stand, compared to health care are resources, opportunity cost, and quality.
Definition of Economic Terms
Resource: a supply of something that someone has and can use when it is needed (“Merriam Webster .com”, 2014). Opportunity Cost: the added cost of using resources that is the difference between the actual value resulting from such use and that of an alternative (“Merriam Webster .com”, 2014). Quality: a characteristic or feature that someone or something has a high level of value or excellence (“Merriam Webster .com, 2014). Market Economic Term: Resource, Opportunity Cost and Quality Resource is defined by Merriam Webster dictionary as, a natural source of wealth or revenue, computable wealth. In economics resource is a source of supply, support, or aid, especially one that can be readily drawn upon when needed (“Merriam Webster .com”, 2014).
Health economics term: Resource Opportunity cost and Quality Health Care Economic Terms: Resource, Opportunity Cost and Quality As health care terms they are defined as such: Opportunity cost is, the economic definition of cost, also known as opportunity cost, is the value of opportunity forgone, strictly the best opportunity forgone, as a result of engaging resources in an activity. Note that there can be a cost without the exchange of money. Also the economists’ notion of cost extends beyond the cost falling on the health service alone; it includes costs falling on other services and on patients themselves. Resource is defined as, the basic inputs to production – the time and abilities of individuals, natural resources such as land and capital.
Quality is a generic concept reflecting concern with the modification and enhancement of life attributes, as, physical, political, moral and social environment; the overall condition of a human life(“Glossary Of Frequently Encountered Terms In Health Economics”, 2003). Market Economic Terms: Resource, Opportunity Cost and Quality Quality is the choicest care or the excellence of something. Recourse the tools and manpower to achieve a task and opportunity cost is the final value placed on the product or service. Cost and quality have a great influence in the health care industry. The quality of health care has increased in the last thirty years; along with cost at an even faster rate (Gretzen, 2007).
Market Economics Compared to Health Economics
The difference in the terms of market economics & health care economics is as follows. Market economics is trade “the making of a buck.” A place where buyers and sellers exchange dollars for a product and/or services (Gretzen, 2007). Health care economics is the purchasing of health care services, the doctor is the seller and the patients are the buyers. In other situations the pharmaceutical companies, medical equipment producers and so on are the sellers and the clients/patients are the buyers. Gretzen states these transactions are based on the terms of the trade, (Gretzen, 2007). In market economics the resources that are used can influence the quality of product, produced and depicts the cost that will be attached to the product for the buyer to be required to pay for the product.
In health care economics resources, quality and cost do work as separate entities, as well as one entity. The resources of health care economics depicts what the health community can produce as a whole. Will research technology, health plans, etc., be available? Will health care be affordable and available to all that need it? And will the quality be able to meet the standards the federal government and the medical communities have set when providing health care and services? These are the questions to be looked at by the marketing and economics teams in the health care community. So they can answer yes to all the questions that are on the minds of many.
When reviewing the economic terms from both side of the coin, market economics and health care economics, resource, quality and opportunity cost are key to the level that health care can be marketed to the community. Health care can be produced and delivered well, at the same time. It can, at the same time, be an affordable value and a high quality product also. Despite Gretzen’s view of health care’s high cost reflecting the public’s willingness to pay for health care when “confronted with the possibility of death; we will pay for just about anything to get our health back.” (Gretzen, 2007) mentality.
(2014). Retrieved from Merriam Webster: www.merriam-webster.com/dictionary/quality Gretzen, T. (2007). Healthcare Economics and Financing (3rd. Ed.). Health Definitions/Glossary of Frequently Encountered Terms in Health Economics. (2003). Retrieved from US National Library of Medicine: www.nlm.nih.gov/nichsr/edu/healthecon/glossary.html#Cost