NUR-621 Economic Theories and Models in Health Care

The purpose of this assignment is to describe economic theories and models in health care. Include your responses in the worksheet listed below and base your responses on evidence. Include references to your textbook and one scholarly article. The four theories/models are listed below.


Theories/Models Description/Definition Example Related to Health Care Components
1. Efficiency Efficiency in resource use (getting the most out of limited resources) is a goal that every health-care organization can accept, regardless of one’s perspective (e.g., that of society, insurers, hospital administrators, or patients). Economic analysis is fundamentally about resource use and can serve an important role in health-care decision-making. Applying economic thinking to health care presents challenges to researchers and will require new approaches to analysis. Measuring the productive process in hospital care is complicated by the fact that the patient is both an input and an output in the process (i.e., the patient’s health is a function of factors determined outside the hospital, such as lifestyle and genetics). Precise and accurate information from hospital epidemiology is critical to understanding the resources needed, and thus the economic impact, of caring for hospitalized patients.    
2. Supply and Demand The relationship between the quantity of a commodity that producers wish to sell at various prices and the quantity that consumers wish to buy (“Supply and demand | Definition, Example, & Graph,” n.d.).    
3. Economies of Scale


4. Market Failure