StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Healthcare Economics - Case Study Example

Comments (0) Cite this document
Summary
Before we discuss the idea of medical care as a derived demand, someone has to define the word of “Derived demand” properly. The word defines a term in economics, as demand for one good or service happens as a result of the demand of another good or service…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER93.7% of users find it useful
Healthcare Economics
Read Text Preview

Extract of sample "Healthcare Economics"

Healthcare Economics Affiliation Healthcare Economics Why is it easier to measure the effects of smoking on individual’s healththan it is to measure the effects of anti-smoking campaigns on health? Be sure to discuss the idea of medical care as derived demand.
Before we discuss the idea of medical care as a derived demand, someone has to define the word of “Derived demand” properly. The word defines a term in economics, as demand for one good or service happens as a result of the demand of another good or service (Mankiw, 2011). The demand for the former results the production of the second. For example, if coal is demanded that leads to a derived demand of mining, as coal must be mined for coal to be consumed. As the demand for coal increases, so does its price and the increase in price leads to a higher demand for the resources involved in mining coal (Baumol & Blinder, 2011).
It is therefore apparent that the answer of the said question applies the same. It is easy to measure of effects of smoking on individuals than to measure the effects of antismoking campaigns on health. You cannot measure the effects of antismoking campaigns on health before measuring the effects of smoking on individuals. Measuring the effects of smoking on individuals is what derived the antismoking campaigns. Knowing the effects of smoking on individuals led to a derived demand of anti-smoking campaigns on Health, once the effects of smoking on individuals is measured then the need of antismoking campaigns arises and that is what positively contributes to health. Therefore, without measuring smoking effects on individuals, it is hardly possible to know even whether there is a need of antismoking campaigns because it is not assured how harmful it is for the individuals.
2. A hospital marketing department in one of the wealthiest zip codes in Rich State determines that for local residents with incomes greater than $250,000 per year, the income elasticity of demand for boutique maternity services is 1.0. Price elasticity of demand is found to be 0.4. Boutique maternity services feature wireless connections, designer decorated private suites and personalized websites for sharing births. Use the idea of income elasticity to explain why, during a recession, when incomes decrease, a revenue maximizing hospital might introduce a high priced, luxury maternity unit targeted at high income families
Through having a price elasticity of less than 1, supply is not so sensitive to prices and based on the high-income target market of individuals with $250,000 per annum. Ideally, a price increase for a luxury maternity unit will still be viable and there is bound to be a sure market for the good. With a decrease in income, the income elasticity of demands is bound to change (Jain & Ohri, 2008). It will be grater than 1 thus implying that demand for a good becomes more sensitive to a change in income. This only happens in an ideal environment but the economy is always sensitive to changes and employers who are profit minded would go for better pay to their employees and cut offs for those who prove to be unprofitable. This ensures that everyone raises their standards and so, rarely does income decrease under recession, but price goes up. According to Bewley (2007), profit maximizing firms are in a better position to understand the importance of maintaining employee salaries during recessions and only doing away with non-profit-performers. This however will not be the case here because; wealthy families will not postpone giving birth because of recession. There is constant supply and high prices will only have them reduce their savings to meet the expenses but will not interfere with their demand for the maternity services (Mankiw, 2011). The decrease in income if any, will only affect the savings.
References
Baumol, W. & Blinder, A. (2011). Microeconomics: Principles & Policies. Mason, Ohio: South Western, Cengage Learning.
Bewley, T. (2007). Why Wages Don’t Fall During Recession. Cambridge, Mass: Harvard Univ. Press.
Jain, T. & Ohri, V. (2008). Introductory Microeconomics and Macroeconomics. Mason, Ohio: Thomson South-western.
Mankiw, N. (2011). Essentials of Economics. Mason, Ohio: Thomson South-western.
Mankiw, N. (2011). Principles of Economics. Mason, Ohio: Thomson South-western. Read More
Tags
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Healthcare Economics Case Study Example | Topics and Well Written Essays - 500 words”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1594142-healthcare-economics
(Healthcare Economics Case Study Example | Topics and Well Written Essays - 500 Words)
https://studentshare.org/macro-microeconomics/1594142-healthcare-economics.
“Healthcare Economics Case Study Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/macro-microeconomics/1594142-healthcare-economics.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Healthcare Economics

Health Economics: Healthcare as a Right or Privilege

...? Health Economics: Healthcare as a Right or Privilege of In Article III of The Universal Declaration of Human Rights, the United Nations writes, “Everyone has the right to life, liberty and security of person” (The Universal Declaration of Human Rights, n.d.). Does life include healthcare? If yes, then everyone should be provided with healthcare. Unfortunately, this is not the case in the United States of America. In 2011, there are 48.6 million Americans that are uninsured or without health insurance (“Highlights: 2011,” n.d.). That amounts to almost 16% of its total population. There arises a debate in the U.S. whether healthcare should be a right or a privilege. I believe that healthcare in the U.S. should be a right rather than...
3 Pages (750 words) Essay

HEALTHCARE POLICY- HEALTHCARE FINANCING

... smoking are young people aged about 65 years and below (Wolf, 2001). However, does the ban on smoking in public places really have an impact on the economic situation of bars and restaurants? Empirical studies carried out in regions in which the law has already been in place for a couple of years reveal that smoking ban does not have adverse negative effect on these regions. In any case, it results in the increment of profit for the hospitality industry. Further, the number of people suffering from heart attacks and acute coronary problems fall by a large margin. Other benefits also include healthcare budget, increased smoking cessation rates, decreased risks of chronic diseases such as heart disease and COPD or other obstructive lung...
3 Pages (750 words) Essay

Healthcare Economics

... The Boston community Healthcare economics This paper focuses on the Boston community. The health insurance and the healthcare market in Boston play a major role in assisting individuals gain access to quality health care services. Following the Massachusetts’s 2006land –mark healthcare reforms, many employer, insures, providers and consumers have been forced to adjust to the new reforms that embraced universal health insurance cover (Corrigan 13). Political support for this health reform has equally remained overwhelming even as many reform opponents greatly oppose the move. According to the Boston healthcare plans, adults are supposed to gain health coverage and employees too must have this nature of coverage. Similarly, the reform...
6 Pages (1500 words) Essay

Healthcare

...Healthcare is, undoubtedly, one of the more important domestic political issues in the United s. Its importance only grows with the rising costof medical care and the increasing numbers of the uninsured. Accordingly, within the context of political campaigns one often finds that healthcare, alongside education and the economy, plays a dominant role. A candidate or incumbent's healthcare program and proposals for healthcare reform are, to say the least, critical electoral issues. However, while both candidates and incumbents often propose reforms which figure as promising solutions to the problems affecting the system, they are hardly, if ever implemented. The reasons for the stated, as a reading of Hamill's (2007) article indicates...
2 Pages (500 words) Essay

Healthcare economics

... HealthCare Economics Ensuring a healthy and working population, is the priority of governments all around the world. Governments formulate health policies according to economic performance. Countries that perform relatively well economically have better health policies compared to countries with below average economies. Healthcare economics essentially entails formulating policies, which are capable of catering for the present and future healthcare needs. In Henderson’s book, “Health Economics & Policy” he writes about “Medical Care Reform in the United States,” in the 15th chapter of the book. This paper will compare and contrast healthcare policies of two countries mentioned in the book’s 15th chapter. The discussion will include...
2 Pages (500 words) Book Report/Review

Healthcare

...THE ROLE OF NURSES IN DECREASING NOSOCOMIAL UTI With hospital stay ironically increasing the risk for infection, it is important to identify ways toprevent such occurrences. The purpose of this paper is to enumerate the risks for catheter-associated urinary tract infection (UTI) and to determine the effective methods of minimizing these risks. Practice setting problem Patients admitted in intensive care unit (ICU) are susceptible to infections, especially of the urinary tract, because of their severely ill condition, immune-compromising treatments, invasive procedures and exposure to microorganisms. Urinary tract infection (UTI) worsens their medical condition, and complicates the management needed to treat them. In effect, UTI... ROLE OF...
2 Pages (500 words) Essay

Healthcare Policy and Economics

...Healthcare policy and economics One of the roles of the government is the provision of public utility. This is coupled with a responsibility to formule laws for establishing and managing the provisions for efficiencies. In this paper, I seek to explain the role of federal and state government in the policy making process. The government’s policymaking processes and their implementation occurs at the top government levels, the federal government and state government levels. Policy making at state levels are majorly vested in state legislature, and the governor. The legislature debate on, approves policies for implementation, and allocate implementation funds. The governor’s office however makes decreed policies that can be regulated...
1 Pages (250 words) Assignment

Economics and Healthcare

...Economics and healthcare Introduction The ultimate objective of any effective healthcare system is the provision of equitable access to healthcare as well as ensuring of liberty and opportunity to access prompt medical assistance when needed. The concerns regarding equitable provision of healthcare services across all sections of the society, regardless of any racial, social or economic bias, pose a critical challenge to healthcare providers across the globe, and more so in the United States. This is mainly due to the fact that the complex relationship between various factors such as employment, access to health care, health coverage, etc in the United States are shaped and influenced largely by the country’s economy. Hence any significant...
6 Pages (1500 words) Assignment

Health Economics: Public and Private Goods in Healthcare

Answer End of life or palliative care of elderly people with dementia needs to be addressed within the wider perspective of public good. Dementia refers to damage of brain cells that control memory and memory retention. People with dementia have progressive memory loss and tend to forget people, events, place or even their names and address etc. leading to serious concern for their own safety (Harris, 2006). They require constant help to attend their daily needs including personal hygiene, meeting medical needs etc. For elderly with dementia, palliative care becomes hugely critical issues because of myriad health associated problems and difficulties especially age related issues like general physical decline, chronic diseases, vis...
2 Pages (500 words) Essay

Implications of Economics and Policy for Healthcare Professionals

...Implications of economics and policy for healthcare professionals July 03, Implications of economics and policy for healthcare professionals Introduction Health economics seeks to deal with a wide range of issues, such as the nature of health, its production, the market available for health care, and even the strategies used to intervene in provision of health care (Henderson, 2012). Therefore, the following discussion aims at highlighting the value of health economics, and the potential benefits of learning about government involvement in health care. The value of health economics Understanding health economics aids in ensuring that a balance exists between patient outcomes, and the efficient utilization of available resources...
2 Pages (500 words) Research Paper

International Business Economics

According to Adam Smith, the absolute advantage would be realised as long as the cost of production differed from between countries, one or both countries would gain by trading. An example to illustrate this is a situation where we have two countries A and B which produce two similar goods X and Y. The figures show labour cost in hours for producing one unit of a good

David Ricardo formulated the theory of comparative advantage and argued that even if one country is more productive in both lines of production it would be still profitable to trade. Country A is more productive in both lines of production but it will still be profitable to trade with country B, this is shown by first stating that country A is more advanta...
6 Pages (1500 words) Assignment

D.H. Lawrence and Other Views on Death - How They May Help Us Deal with Death in Context to Healthcare

Lawrence graduated from University College, Nottingham in 1908, devoted himself for a time to teaching at a boy’s school, but not long after, decided to quit teaching and spend his time at freelance writing instead. In March of 1912, he met and fell in love with a married woman, Frieda Weekley, nee Richthofen; then six weeks later eloped with her to the Continent.

Frieda was a sister of the famous German World War I flying ace and wife of Lawrence’s French professor at Nottingham. This elopement marked the start of Lawrence’s lifetime war with existent moral standards as well as the beginning of a continuous wanderlust prompted by Tuberculosis which induced him to seek warmer and more healthful climes....
9 Pages (2250 words) Essay

A Plan to Reform the US Healthcare System

The regimes need to be proactive in nature which means that the vision of having the related healthcare systems within the US medical departments and hospitals should be an ongoing activity rather a one-step, a reactionary move which usually happens from time to time, usually due to one calamity or a catastrophe that hits the particular region within the United States of America. Thus in this paper, our focus would be set on discussing the healthcare systems that are operational within the US and also pinpoint the gray areas where some particular steps could be taken to ward off the negativities thus attached to them. 

A healthy person is not difficult to define. He or she is a person who does his chores regularly...
10 Pages (2500 words) Term Paper

Business Economics: Small and Medium

The entry of small firms into the global markets has proven to be the main aspect of the creation of economies of scale. Markets are fast evolving to the needs of varied tastes and customer preferences, so necessary knowledge and technology asset has a major role to play for small firms to rise and to match up to the situation. However, small firms are characterized by “smallness of the market share (a large number of similar-sized firms) and hence lack of individual market power, corresponding to the theoretical concept of Pure Competition.” (Waite 1973. P. 154).

They need to overcome the handicap of smallness by strategic alliances and mergers with larger or technically more competent entities. Small firms...
10 Pages (2500 words) Assignment

Issues in Applied Economics

A major issue then, becomes the convincing obligation by the polity not to abuse its force. Because institutions are planned by people with different bargaining powers and not for sake of effectiveness, some models may be less competent than others and due to path dependency, may continue for a long time, resulting in sluggish economy. The shortage of realistic commitment by the state not to suitable property human rights accounts for the incompetent institutions that have developed in different countries. To humor, such situation provides disincentives to investment in socially profitable enterprises, and generates groups with vested interests in preserving the status quo constraints.

Institutions present the fundament...
6 Pages (1500 words) Term Paper

Economics or Ethics

Several CEOs in America have in coalition with top managers deviated from the norms of corporate governance and caused immeasurable woes to the stakeholders. Using their power and ego they chased the wealth for personal gains without any concern for the shareholders or other stakeholders of the company. Enron, the world’s largest energy trader at one time, had to file bankruptcy under Chapter 11 when about 5000 workers lost their job (Bhattacharya, 2004). Arthur Anderson, one of the big five auditing firms was charged to have colluded with the management to misappropriate funds and project a picture different from the reality. Income was inflated and then all concerned papers were destroyed. The leadership at Enron was conce...
6 Pages (1500 words) Assignment

Managerial Economics and Business Environment

Once the above said subject matter is clearly sorted out, the next emphasis would be on the concepts like the opportunity costing, incremental principle, marginal principle, discounting principle, the principle of time perspective, and calculation of economic profit as the guidelines to the scope of managerial economics. (Surender. V, 2008).
To start with, we consider a firm for which different processes have to be carried to achieve its objectives of profit maximization (assuming that all the organizations work with the view to maximize profits). If firms from different sectors are identified simultaneously, then the working of the economy as a whole could also be analyzed which in turn is useful in the decision-making proce...
15 Pages (3750 words) Assignment

Introductory Economics and Finance: Why Governments Regulate Firms and Markets

By government regulation, it is meant by the rules administered by a government or government agency to influence any economic activity which determines the price, types, and standards of products, and most importantly the conditions under which the entry and exit of the firms are possible.

Like death, it is impossible to keep away from regulation in about every aspect of daily life. The business regulation may be classified into two- economic and social (Litan). The economic regulation deals with price controls and the entry limits of the firms into markets. The second type regulation mostly deals with externalities (the outside influences of the company or firm which may or may not be decided by them)

Examp...
6 Pages (1500 words) Assignment

Economics: Public Utilities

The degree of capital intensity simply put is the ratio of the total money value of the equipment as compared to the total production output potential. Generally, capital intensive industries give a very high rate of return which in turn generates very high profits. The higher rate of return and profits leads to very high re-investment into these industries. The benefit of higher capital investment is that the industry can equip itself with better and more hi-tech equipment and essential tools and this use of advanced technology, in turn, leads to higher productivity. These industries possess the power to generate much higher profits which leads to a higher standard of living.

On the other hand capital, intensive indust...
7 Pages (1750 words) Assignment

The US Healthcare System

Nevertheless, enhanced technology and efficient administrative supervision have also assured superior quality of the services in the sector, compatible with the international standards, which has further added to the competitive advantages of the US healthcare sector. However, considering the fact that the healthcare cost in the US has surpassed the affordability of a majority of people in the country, who are subsequently motivated to migrate overseas and obtain cheaper but quality medical services. To be noted in this regard, it is this particular aspect that has been considered as the problem in this study.

One Problem With The US Healthcare System Is That The Cost Of Care Is Very Expensive. A Proposal, Do I Think Th...
7 Pages (1750 words) Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Case Study on topic Healthcare Economics for FREE!

Contact Us