The Role of Economics in Healthcare (Essay Sample)

Role of economics in healthcare
Students Name
Institution Affiliation
Economics is the study of how society uses its scarce resources. Economics applies its knowledge to almost every field including the healthcare sector. Concerning Medicare and Public Health Organizations, Economics has been used to ensure efficiency, behavioral value, and effectiveness in the supply and consumption of health care. How economics is used in the provision of quality healthcare and strategy developed varies depending on its purpose, the extent it is used and the degree of how advanced is a national healthcare system infrastructure. However, there are general uses of economics in the provision of health care and strategy development.
Economics can be used to ensure that there are optimized benefits on healthcare spending. In providing quality healthcare, organizations have to incur costs in the purchase of infrastructure, service delivery expenses, and even human resource payment (Parkin, 2017). Economics is used to ensure that the organizations do not spend more than they can manage to remain operational while maintaining quality through strategic planning.
Economics has a significant role in managing demand and costs. In the development of healthcare systems, costs are incurred in securing the necessary technology and infrastructure. With the growth of the healthcare system, technology has been on demand. Economics aid in the technological assessment of whether it is essential to spend on such technologies and if healthcare would benefit more from it in matters concerning healthcare service provision.
Economics plays a role in the understanding of bargaining power by healthcare institutions. Such knowledge is used towards their suppliers of healthcare products whether it is the supply of pharmaceuticals, medical technology, and facilities, economics aid healthcare