Economic Tools Paper

1193 Words5 Pages
Running Head: Economic Tools and Concepts Economic Tools and Concepts Paper University of Phoenix HCS 552 December 3, 2012 Several studies have found an association between low nurse staffing and adverse patient outcomes. Patient safety is a prominent health policy issue. Concerns that the nursing shortage affects patient safety has prompted legislation at both the federal and state levels (Anderson, 2007). The nursing shortage also has important cost implications for hospitals. The cost of recruiting and training an entry-level registered nurse is approximately 100 percent of a nurse's salary, with the costs even more for specialized nurses. The additional cost associated with adverse events has encouraged hospitals to reexamine their workforce policies and work environment (Anderson, 2007). Here in the United States, the experience with nursing shortages is rising. In the past the government focused on trying to increase salaries. But with this being done statistics is starting to show that the numbers have worsened and need some work done. The Supply and demand curves Supply is known as the fundamental economic concept that best describes how the total amount of a specific good or service that is available to consumers. Supply also refers to the quantity of goods a vendor or supplier is willing to make at a certain price that will benefit the growth of that vendors or supplier’s profits, business and demand. When the changes in supply start to happen, medical provider start to have shortages of surpluses as well as other factors that are used to determine changes in supply. When the level of cost starts to change the supply curve starts to shift. Due to the change of supply, sometimes nurses and Physicians income increases, and this process will start to increase the health care cost. With that being said, some managed care plans started to
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