Policy Research and Organizational Analysis Report (Essay Sample)

Policy Research and Organizational Analysis Report Student’s Name Affiliation Course Instructor’s Name Due Date Policy Research and Organizational Analysis Report In the dynamic healthcare field, economics and legal frameworks play a significant role; healthcare management professionals need a good knowledge of these aspects. This study analyses how microeconomic and macroeconomic factors affect healthcare organizations, focusing on the Children’s Hospital of Philadelphia (CHOP). This research analyzes the influence of economic theories and legal changes within the healthcare markets and service delivery systems and the effectiveness of healthcare organizations. Furthermore, the subject explores demand and other market theories to examine their manifestation in healthcare financials and strategic management strategies. Concerning this, this paper aims to present a vast synthesis that can assist healthcare management personnel in grasping the economic conditions and legislation to transform their capacity to make decisions that would foster the achievement of organizational goals as well as the health needs of society. Economic Theories and Principles Economic Disparities In the healthcare industry, economic disparities often arise from the intricate relationship between the financial health of the sector and the availability of healthcare services. Market and demand theories explain this correlation. In other words, it explains the availability of healthcare services in terms of the financial capacities and economic soundness of healthcare organizations. For instance, a developed and economic healthcare business will invest hugely in new technology and human resources, which enhances the availability and quality of services (Autor et al., 2023). On the other hand, poor financial management or economic difficulties cause a reduction in service delivery, an impact that is most realized in the rural regions. Market theory explains the characteristics and behavior of consumers as well as producers in the market and the process through which the market price of the commodities is arrived at. This theory is evident from the manner in which medical services are priced, the insurance premiums that are being charged, and even the kind of availability or scarcity of the services that are available in the market, has shaped this theory. Demand theory, on the other hand, focuses on the demand for products and services as influenced by consumers’ preferences and their income levels (Pallant et al., 2020). Population growth, aging, and the presence of chronic diseases as system drivers occur as underlying factors that give rise to demands that surpass availability and elevate the costs to unattainable levels, compromising access to adequate healthcare solutions. Economic Theories Several economic theories are pretty relevant and knowledgeable in the field of healthcare. Firstly, the supply and demand theory is beneficial in anticipating the regularity that is associated with the price and accessibility of health care. This implies that as the need for healthcare services increases, so does the cost of each service if there is insufficient supply. Secondly, cost-benefit analysis helps determine the feasibility and economic rationality of creating new treatments, technologies, and additional services and making the right choices considering the costs and potential benefits for the patient and the system (Mishan & Quah, 2020). Also, the principles of elasticity determine how much the consumption of healthcare services will vary in response to changes in price or income. For instance, measuring demand for some elementary medical services is less sensitive because individuals will require these services regardless of whether the prices are high or low. However, demand might be more elastic in elective procedures as people may postpone or cancel them depending on their financial capabilities. Use of Economic Principles Short-term decision-making entails flexible pricing strategies about the current necessities in supply and demand, stock control using forecasts, or more employees at certain stages due to cyclical economic movements. These principles influence Long-term decisions, such as market entry into new areas, adoption of advanced technologies in healthcare, or creation of new service lines to address future trends relating to demography and health (Bvuchete, Munyaradzi, 2020). This strategic foresight aids in avoiding financial insolvency, ensuring services are available without interruption, and, ultimately, their goal is to provide affordable and quality care. Thus, by applying economic theories and principles in their strategic management system, healthcare organizations can be better positioned to face the dynamic healthcare environment regarding economic change and be prepared for such circumstances. For-Profit and Nonprofit Nonprofit and for-profit healthcare organizations have distinct financial and economic systems due to the differences in organizational missions, structures, and regulatory requirements. Financially, for-profit healthcare establishments are owned by private investors or shareholders with the primary motive of generating profits, which are then redistributed to the owners or reinvested based on their discretion. On the other hand, nonprofit healthcare organizations always use any extra earned income to fund their missions in terms of the provision of community services and health improvement, which usually involves the opening of more and more facilities, improvement of services, and sponsoring of community health activities (Rozier, 2020). Moreover, for-profit healthcare institutions tend to prefer to invest in the technologies and services with more significant revenue potential, which results in the development of the organizational structures and potentially distorts the focus on certain medical specialties or client groups, such as most profitable treatments or clients. However, nonprofit organizations deliver a more comprehensive array of services, including less financially profitable services essential to the community's needs, like emergency and mental health services. Economic Differentiation Economic policies and legislation influence for-profit and nonprofit organizations differently. Some tax advantages given to nonprofit healthcare organizations include tax exemption benefits, which enable them to spend a large percentage of their income on health and other community needs. This status is predicated on meeting specific community benefit requirements, which can influence a sizable portion of their activities and decision-making (Rozier, 2020). Such tax exemptions are not given to for-profits and, thus, affect financial management, price determination, and the array of services to offer. Recent and current economic policies impact these entities distinctly. For instance, nonprofit hospitals frequently associated with Medicare and Medicaid patients may be adversely affected by changes in these programs’ policies or reimbursement status. Similarly, legislation related to the Affordable Care Act (ACA) changes how for-profit and nonprofit healthcare organizations manage care for large populations of uninsured patients. Moreover, during the COVID-19 pandemic, various federal relief funds were allocated differently, affecting for-profit and nonprofit entities in diverse ways in which nonprofits were often eligible for additional funding options unavailable to for-profit entities, such as specific public and charitable grants, to sustain operations and continue providing community-centric services (Van Steenburg et al., 2022). Policy, Changes, and Disparities Economic Policy and Disparities in Care Economic policies play a significant role in shaping healthcare inequalities, which has emerged more clearly in the contemporary literature on health policies. Programs designed to foster economic initiatives influence the availability of care, costs, and quality of service that various groups attain. For example, Medicaid expansions have helped to close the gaps in the utilization of health services between the less privileged and higher-income earners due to improvements in insurance coverage among the former (Rosenbaum & Wilensky, 2020). On the other hand, policies that cut funding for public health programs can cause disparities since such services affect the less privileged groups most. Despite making insurance more affordable, policies aimed at subsidizing private insurance may not eliminate challenges inherent in the social determinants of health, including education, employment, and residence, which Previous research has identified as the primary influences on health disparities that need to be addressed for any policy to have a comprehensive impact. Policy Changes Recent legislative changes, such as those related to the ACA, illustrate the impact of policy on healthcare economics. The ACA contained provisions for establishing health insurance exchanges and the expansion of Medicaid to help reduce the uninsured population and the uninsured health risk in the United States. However, not all states opted to expand its coverage; hence, the nation has different effects. The states that expanded Medicaid evidenced more significant decreases in the uninsured rate and greater gains in access to care; this is a straightforward example of how laws can impact economic policy and healthcare inequality (Lee & Porell, 2020). Furthermore, medical funding policies have been put into place to increase the funding of hospitals, provide insurance for emergency COVID-19 health issues, and expand the usage of telemedicine services, which have, in the short term, lessened some disparities because they have granted prior inaccessible healthcare to specific groups. Disparities Planning Disparities in care are factored into healthcare strategic planning because add...