Health Care Marginal Analysis

1385 Words6 Pages
Economic Tools and Concepts
Angela Stafford
University of Phoenix

Economic Tools and Concepts
Healthcare uses Economic concepts and tools to regulate the ease of access and availability of health care to society. Economic tools are essential to govern health care quality and healthcare services that are available to a diverse population. Numerous stakeholders including the government hold important responsibilities in deciding the type of healthcare services offered at private and public organizations.
Healthcare is limited in the United States and one of the chief reasons is the lack of available healthcare providers particularly registered nurses. Economic concepts and tools including Supply and demand curves, marginal analysis and
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When the benefits and costs are equal ideal performing occurs (Fullbrook, 2008). Marginal analysis is founded on utilitarian beliefs that have been described as the greatest good for the greatest number of people (Bureau of Health Professions, 2004).
Marginal expenses in health care are the costs sustained to train more registered nurses or establishing additional health care services to increase the supply of nurses. This cost raises with increased construction, for example, as more individuals are enrolled in nursing programs, the price of educating him or her increases because the colleges and universities must employ more educators and find more places for students to practice his or her clinical skills. The increased expense caused by the number of nurses trained causes a strain on the available limited resources (Fullbrook, 2008).
Marginal benefits indicate that added benefits will be achieved for society after additional nurses have been educated and trained. The extra benefits typically shrink as the delivery of services increase if the needs and numbers of individuals seeking services also increase (Conova,
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The public is expected to benefit from increasing the amount of registered nurses available to provide healthcare. Benefits include increasing quality care while reducing costs. The government is playing an important role to guarantee that all individuals in the United States have access to healthcare insurance and healthcare services. Public and private organizations must also start to focus on recruitment and retention of qualified registered nurses because increasing the supply of nurses is essential to meet the

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