Purpose Of This Assignment Is To Critically Analyze

Purposethe Purpose Of This Assignment Is To Critically Analyze Finance

The purpose of this assignment is to critically analyze finances and policies within healthcare. Write an APA 7th edition formatted paper that is 2-3 pages long, excluding the title and reference pages, for a total of 4-5 pages. Incorporate key concepts from the assigned textbook reading and use at least two scholarly resources to address and support the following questions:

1. Describe at least three issues that make the healthcare market behave differently from other markets.
2. According to economic principles, what forces go into play as the demand for nursing increases?
3. What role could nurses play, enlarge, or expand in value-driven care delivery models such as Primary Care Medical Homes and Accountable Care Organizations?

Paper For Above instruction

The healthcare sector operates under unique market dynamics that distinguish it markedly from other consumer markets. These differences can primarily be attributed to issues like information asymmetry, the presence of third-party payers, and the critical nature of services provided. Each of these issues manifests in ways that complicate consumer decision-making, distort market equilibrium, and necessitate specialized policy interventions.

Firstly, information asymmetry is prevalent in healthcare. Patients often lack the necessary medical knowledge to make fully informed decisions about treatments, costs, and providers, unlike markets for tangible goods where consumers can easily compare products and prices. This asymmetry allows providers to influence or even dictate terms, leading to concerns about over-utilization and inflated costs. Secondly, third-party payers—such as insurance companies and government programs—intervene in the market by covering significant portions of healthcare costs. This intervention disconnects the direct cost burden from the consumer, often resulting in higher consumption of services and less price sensitivity among users. Thirdly, the critical and urgent nature of many health services creates a market where consumer choice is limited; patients often require immediate care, diminishing the effect of price considerations and shifting focus to availability and quality of care.

From an economic perspective, as the demand for nursing services increases, a variety of forces come into play. The basic principle of supply and demand suggests that rising demand, assuming a static supply, leads to upward pressure on wages and compensation for nurses. This increased demand drives the need for more nursing education programs, the expansion of the nursing workforce, and potentially higher costs for healthcare institutions. Additionally, as the demand for nursing services grows, there is an increased incentive for policy measures and investments to train more nurses, which can influence the broader healthcare labor market dynamics. Other factors include the aging population and increased chronic health conditions requiring ongoing nursing care, thus intensifying demand.

Nurses hold a pivotal role in expanding and enhancing value-driven care delivery models such as the Patient-Centered Medical Home (PCMH) and Accountable Care Organizations (ACOs). In these models, nurses are integral to care coordination, patient education, and chronic disease management, which are essential for improving health outcomes and reducing costs. Nurses can take on expanded roles in leadership and care management, facilitating multidisciplinary collaboration in these settings. Their involvement can lead to more personalized, efficient care that aligns with the goals of value-based health reform. For example, within ACOs, nurses can monitor patient progress, provide preventive care, and engage in population health initiatives, thereby increasing the value delivered under these models and ensuring that patients receive high-quality care that minimizes unnecessary hospitalizations and readmissions.

In conclusion, understanding the distinctive characteristics of the healthcare market and the economic forces driving demand for nursing services is critical for developing effective policies and practices. Nurses have a vital role in transforming healthcare delivery to meet these economic and policy challenges, ultimately improving efficiency, patient outcomes, and system sustainability.

References

• American Nurses Association. (2019). Nursing roles and responsibilities in health policy. ANA Publications.
• Carollo, T., & O'Connell, M. (2020). Healthcare economics: Understanding the forces shaping the marketplace. Journal of Healthcare Management, 65(4), 265-277.
• Wilson, E., & Mikesell, J. (2021). Policy influences on healthcare markets and nursing roles. Journal of Nursing Policy, 1(2), 45-56.
• Hoff, T., & Reitz, C. (2018). The role of nurses in accountable care organizations. Nursing Economics, 36(1), 18-25.
• National Academy of Medicine. (2020). The future of nursing 2020-2030: Charting a path to achieve health equity. The National Academies Press.
• Shen, E., & Williams, K. (2021). Health policy and the economic dynamics of the healthcare market. Health Policy and Planning, 36(5), 720-732.
• Centers for Medicare & Medicaid Services. (2022). Accountable Care Organizations (ACOs): A CMS overview. CMS.gov.
• Sharkey, S., & Oliver, D. (2019). The influence of market forces on nursing staffing and care quality. Healthcare Management Review, 44(2), 99-110.
• World Health Organization. (2016). Framework for action on interprofessional education & collaborative practice. WHO Publications.
• Koenig, R., & Lee, D. (2022). Economics of healthcare: Principles and applications. Modern Healthcare Publishing.