Consider A Scenario And Apply Economic Health Care Concepts

Consider A Scenario And Apply Economic Health Care Concepts And Princi

Consider a scenario and apply economic health care concepts and principles to craft a presentation to inform decision makers regarding a proposed hospital expansion. Imagine that senior executives of the hospital where you are employed are considering a significant expansion of its emergency care center that is smaller than other centers in the metro area. You have been tasked with communicating health care economic principles that must be considered as they explore and make decisions regarding the project. There are a great many considerations when planning an expansion of this kind, such as building and finance costs, permitting, land acquisition, et cetera. Two critical considerations are the supply of emergency care services and the demand for health care workers.

The executives are also interested in the revenue prospect. How will the patients pay? Who pays? Your task is to create a PowerPoint presentation that summarizes a high-level economic analysis that informs the board's decision-making by informing them about the supply and demand for emergency care services in the community, as well as quality measures. The information should inform the leadership's decision to pursue the next steps in the expansion evaluation, which would involve a more detailed analysis of the factors that you outline.

It should not be a full market analysis or evaluation of specific costs, but rather an introduction to the economic considerations.

Part 1: Emergency Care Supply

Analyze the city's emergency care services to provide an accurate high-level snapshot of the market structure in the emergency care space. You should confine your search to other hospitals or large clinics. State and justify three primary questions that an economist should be asking regarding the supply of local emergency services that reveal important insights for the board. This should be approached from the health care provider's perspective. Provide a sound economic analysis using appropriate tools and principles that effectively answers one of these questions.

Part 2: Emergency Care Demand

Analyze the demand for local emergency care from a consumer perspective using appropriate economic principles and tools. State and justify three primary questions that an economist should be asking regarding the market demand for labor and insurance of local emergency services that reveal important insights for the board. Provide a sound economic analysis using appropriate tools and principles that answers one of these questions.

Part 3: Quality Measures

Describe three types of quality measures that should be used to effectively assess how effective reimbursements or payments are likely to be. For example, cost, efficiency, health outcome measures, and patient-reported outcome measures. Use at least five sources to support your writing. Choose sources that are credible, relevant, and appropriate.

Presentation Requirements

The presentation should include a cover slide containing the title of the assignment, the student's name, the professor's name, the course title, and the date. It must include a sources slide(s) at the end, citing five credible sources in Strayer Writing Standards format. Slides should include detailed speaker notes to explain complex concepts, incorporate pictures, diagrams, and graphs to enhance appeal, and be clear and concise. Use bullet points and summaries as needed. Visit Pexels for free images and videos to improve your slides.

Paper For Above instruction

The proposed hospital expansion project in a mid-sized metropolitan area necessitates a comprehensive economic analysis rooted in health care principles. This analysis will focus on three core components: supply assessment of emergency services, demand analysis from a consumer standpoint, and quality measures to evaluate reimbursement efficacy. The insights gained will guide decision-making processes regarding the expansion, ensuring economic viability and optimal community health outcomes.

Part 1: Emergency Care Supply

The supply side of emergency care services in a metropolitan area is characterized by multiple providers, including hospitals and large clinics that compete to serve the community. According to market structure classifications, this scenario likely represents an oligopolistic or monopolistic competition environment, where several providers offer similar services but differentiate by quality or location (Folland, Goodman, & Stano, 2017). To analyze the supply effectively, three primary questions an economist should ask include: (1) What is the current capacity of existing emergency care providers, and how does this compare to population demand? (2) What are the barriers to increasing supply, such as licensing, staffing, or capital costs? and (3) How do the pricing strategies and reimbursement rates influence provider competition and capacity expansion?

From a practical standpoint, one critical economic tool is the analysis of supply elasticity for emergency services. Understanding responsiveness of supply to changes in demand or reimbursement rates helps forecast the potential for capacity expansion. For example, if supply is inelastic, increasing demand may lead to longer wait times and reduced quality, signaling a need for investments to improve capacity or efficiency (Baker, 2014).

Part 2: Emergency Care Demand

Demand for emergency care hinges on consumer behavior, health needs, insurance coverage, and demographic patterns. To effectively analyze this demand, three questions are pivotal: (1) What is the current utilization rate of emergency services—what proportion of the population relies on these services regularly? (2) How does insurance coverage affect utilization rates—do uninsured or underinsured populations utilize emergency services less or more? and (3) How elastic is demand in response to changes in pricing or copayment levels?

Economic theory suggests that demand elasticity varies; emergency care often shows inelastic demand because it is an urgent necessity, but in some cases, high costs or poor access may suppress utilization (Cohen & Mello, 2018). Analyzing price sensitivity using demand elasticity models can guide policy decisions, such as setting copayments or designing insurance plans that influence utilization patterns without discouraging necessary care.

Part 3: Quality Measures

Effective quality measures are essential to evaluate how reimbursement models influence healthcare delivery and patient outcomes. Three key types include: (1) Cost and efficiency measures, such as cost per case or length of stay, to assess resource utilization; (2) Health outcome measures, including mortality and complication rates, to evaluate clinical effectiveness; and (3) Patient-reported outcome measures (PROMs), capturing patient satisfaction and perceived health improvements (Schoenfeld et al., 2019). These measures collectively help determine whether reimbursement structures promote high-quality, cost-effective care.

Implementing a balanced scorecard approach that combines these measures provides a comprehensive picture of care quality and financial sustainability. Regular monitoring can guide contract negotiations with insurers and policy adjustments to align reimbursement incentives with desired health outcomes.

Conclusion

In summary, effective economic analysis for the proposed emergency care expansion hinges on understanding the local market structure, demand elasticity, and quality measures. These insights inform strategic decisions, ensuring that investments meet community needs efficiently and sustainably. Employing appropriate economic tools like supply elasticity and demand responsiveness models, combined with robust quality metrics, will support sustainable health system improvements aligned with community health priorities.

References

• Baker, S. (2014). Health Economics. Oxford University Press.
• Cohen, J. T., & Mello, M. M. (2018). Achieving the perfect storm: balancing patient demand, healthcare supply, and insurance coverage. Medical Care, 56(6), 454-460.
• Folland, S., Goodman, A. C., & Stano, M. (2017). The Economics of Health and Health Care (7th ed.). Routledge.
• Schoenfeld, E. M., et al. (2019). Developing patient-reported outcome measures for emergency care. Journal of Emergency Medicine, 57(3), 448-455.
• U.S. Census Bureau. (2022). Community Population Data for [Chosen Metropolitan Area].