Implications of Health Economic Concepts for Healthcare - Research Paper Example

They consist of the following; barriers to entry, asymmetric information, comprehensive government intervention, externalities, and intractable uncertainty in various dimensions, as well as presence of third party agents (Fuchs, 2011). The paper will discuss five economic concepts in healthcare economics. The study would also highlight the benefits of learning about health economics in relation to government and private sectors, government involvement in healthcare economics, financing, and delivery.

Additionally, the paper will also discuss why health care professionals and decision makers need to value health economics. The health care professionals and decision makers need to comprehend the value of health economics, since health economists evaluate many kinds of financial information such as charges, costs, and expenditures. Furthermore, they also need to comprehend that main aim of health care economists is to offer information to the decision-makers so that the choices that they make, maximize the health benefits to the population.

Health economics is concerned with saving cash while enhancing the level and distribution of population health with the available resources (Shepard and Thompson, 2012). Due to the complex nature of the health care industry, more effort needs to be done to further develop and standardize the concepts related to health economics. Health economics is considered as an integral part of health management from the peripheral level to the apex referral hospitals. The health care sector is characterized by extensive government intervention, ranging from operational licenses of the doctors and the regulations on service delivery.

According to Alastair et al. (2010), the public sector involvements in medical care include social justice, redistribution, prevention of monopolies, and public goods. Social justice is applicable to situations where offering of health services to one