Week1 Chapter 1 & 5
Ina macro economy, when making the decision on the combination ofmedical and non-medical goods to produce, it is important to considerthe opportunity cost. Since the resources used in the production ofthe medical and non-medical goods are scarce, it is important tochoose a combination that would result in optimum outcome (Getzen,2013). Therefore, the combination to produce is based on the prioritythat the macro economy has. The particular medical goods and servicesthat should be produced in the health economy would depend on theneeds in the health economy that is, the medical goods and servicesto be produced in the health economy would be determined by thepreferences that the economy has. This would the case becauseresources are scarce and need to be allocated efficiently (Feldstein,2012). The specific health care resources that should be used inproducing the final medical goods and services are determined by theresources available and production efficiency the specific healthcare resources that would be used in producing the final medicalgoods and services would be capital and labor. These two resourcesmust be applied in an efficient manner. The question as to who shouldreceive the medical goods and services in an economy depends with thekind of market that the economy has adopted. In a pure market, priceis charged for the medical goods and services, which implies thatonly those who are willing and have the power to pay will receive themedical goods and services. However, in a mixed market, where thegovernment has an influence in the distribution of goods andservices, some of the medical goods and services would be received byevery citizen while some goods and services would be subsidizedrequiring some payment. Thus, the type of market will determine whoreceives the medical goods and services. Prices serve the purpose ofdetermining who should receive goods and services.
Chapter6 and 8
Theconcept of need should not be the only single determinant of thedemand for medical care because there are other determinants. Forexample, the demand for medical care can be influenced by otherfactors such as industrialization, levels of education, and even percapita income (Somers,1996).The implications of supply and demand theory may show up in acompany’s strategies in different ways. One such way may include acompany having the strategy of having specialized care andnon-specialized care emanating from an increasing demand in thenumber of patients requesting for specialized care, a company mayintroduce this strategy. Implications of supply and demand theory mayalso be shown through a company’s pricing strategy. When there isan increase in the demand for medical services in a certain area ofmedical specialty, a company may change the pricing strategy in thearea in order to influence profitability (Feldstein, 2012).
Healthcare may be made cheaper through making some changes in the wayhealth records are kept. In case electronic records are introduced inhealth care facilities, it is possible to make health care cheaperbecause few employees may be required to handle the process. Theextra cost used to pay the extra employees can be to cover formedical expenses, thus lowering the price needed to receive care(Williams & Samarth, 2011). In case health care is cheaper, theentire society benefits because health care will be accessible to alarger number which would imply that productivity in the societywould increase. I do not agree with the author’s conclusionconcerning the reasons for health costs not declining. This isbecause there are some ways that can be implemented to make healthcosts go down. Furthermore, solutions to the solutions can be found.
Oneof the biggest insights after reading “Howto Read a 10-K”was how the article was offering crucial information for example,the article was in a position to explain what a 10-K and theinformation it contains. This information is crucial to individualswho have never read or seen a 10-K and would like to invest. Anotherinsight was how the article was detailed and not assuming anyinformation concerning a company’s 10-K. For instance, it provideddetailed information concerning how 10-K is itemized. From the tipsobserved from the SEC website, it is apparent that the company that Iselected followed the description provided by the website thecompany provided all pertinent information which the websiteindicates should be availed to an investor for example, the companyprovided information on the risk factors in order of theirimportance.
Theconcept that I choose entails aligning organization to strategy.According to Kaplan, it is important to align the organization to theleadership strategy in order to achieve excellent performance(Kaplan, 2010). I agree with this concept because there is no waythat excellent performance can be expected in an organization if theleadership strategy does not match with the needs of theorganization. Organizations that have different objective with thatof the leader are not likely to realize excellent performance becausethere seems to be contradicting relationship amid the leader and theorganization objectives. Thus in case an organization desires to haveexcellent performance, it is important to ensure that the objectivesof an organization align with the leadership strategy (Militello& Schwalberg, 2002).Therefore, I support the concept of aligning organization to strategyas provided by Kaplan.
Asa nurse, I apply algebra in the profession when giving medications.In giving medications, it is important to determine the right dosefor patients. Also, when monitoring changes in health, I also applyalgebra since I have to determine whether the body weight is normal(Cleaves et al., 1998).
Theconcept that I would consider best in managing cost is controllingexcessive costs for instance, organizations may purchase more thanrequired items. The excess capacity would lead to higher spendingwhich is not necessary. According to Warner (2014), this can bereduced by ensuring that the exact number of items is purchased.
Marketshare is an important aspect when determining the price in healthcare(Jacob & Rapoport, 2004). Most of the healthcare markets areusually meager in area and most patients will not be willing totravel far away in order to receive care. Therefore, the greater themarket share that a provider has, the greater the leverage for theprovider when negotiating about the health care plan contracts(Cleverley & Cameron, 2007). For example, in case a certainprovider controls 90% of certain health issue in an area, every planwould include the provider in the provision of health care. This iscritical for such a health care provider when it comes to thenegotiation of payment terms. Hence, market share emerges as animportant aspect to a health care provider due to the negotiation ofhealth plan contacts.
Cleaves,C., Hobbs, M., & Dudenhefer, P. (1998). Collegealgebra and trigonometry with applications.Upper Saddle River, N.J: Prentice Hall.
Cleverley,W. O., & Cameron, A. E. (2007). Essentialsof health care finance.Sudbury, Mass: Jones and Bartlett Publishers.
Jacobs,P., & Rapoport, J. (2004). Theeconomics of health and medical care.Sudbury, MA: Jones and Bartlett Publishers.
Kaplan,S.R. (2010). Leadand Manage Using the Balanced Scorecard. Retrieved fromhttp://www.humanresourcesiq.com/hr-management/articles/lead-and-manage-using-the-balanced-scorecar/
Militello,F. C., & Schwalberg, M. D. (2002). Leveragecompetencies: The key to financial leadership success.Upper Saddle River, NJ: Financial Times/Prentice Hall PTR.
Somers,A. R. (1996). Some Basic Determinants of Medical Care and HealthPolicy: An Overview of Trends and Issues. HealthServices Research,1(2),193–209.
Warner,J. (2014). InWhat Ways Can We Manage or Even Reduce Organizational Costs?
Williams,T., & Samarth, A. (2011). Electronichealth records for dummies.Hoboken, N.J: Wiley Pub.
Getzen,T. E. (2013). Healtheconomics and financing.Hoboken: John Wiley & Sons.
Feldstein,P. (2012).Health Care Economics (7th ed.). CliftonPark, New York: Cengage Learning.