Homework: Evaluating Economic Trade-Offs In Healthcare Sector
1) Explain how economic decisions are made and what economic concepts are used to evaluate economic trade-offs.
2) Evaluate the economic impact of the major components of the healthcare system and assess their relative effect on health services management.
As you learned, health care spending is growing faster than overall growth in the economy (as measured by GDP) and by 2026 is expected to consume 20 percent of GDP.
Given what you have learned from the course material, discuss these trade-offs and how to evaluate them from an economic perspective.
Specifically, for this homework use the course readings in to answer the following questions:
• Why do we care that health care spending is growing faster than growth in the overall economy as measured by GDP?
• What are the unique characteristics of health care sector that creates inefficiencies in the market.
• In general, what two metrics would you use to evaluate trade-offs of spending more on health care vs. other non-health care goods. Elaborate on each metric.
• From a government (policymakers) perspective, apply these two metrics to excessive health care spending.
Format your homework according to the give formatting requirements:
• The answer must be using Times New Roman font (size 12), double spaced, and typed, with one-inch margins on all sides.
• The response also includes a cover page containing the student's name, the title of the homework, the course title, and the date. The cover page is not included in the required page length.
• Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.