Economics & Healthcare

p Running Head : Economics Health care

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Date : April 29 , 2009

How conventional economic principles might or might not apply to the US health care environment

Health care in the United States of America is influenced by various economic variables especially supply and demand . Other factors that influence supply and demand in health care include : the education of health care givers , labor force , and the health system in place as well as the changing economy (Kovner , Knickman Jonas , 2008 ' The way this factors will influence

each other will determine market equilibrium or disequilibrium . Disequilibrium will occur mainly when there are labor shortages and this will mean that the lot of money will be paid by patients to be able to be seen by the health providers

The number of health care practitioners also determine the number of patients who will be treated in a given health facility . Therefore , if medical practitioners are less , then few people will be treated and patients ' health conditions will deteriorate if such situations are not addressed fast . On the other hand , when the supply of health care givers is high , then more patients will have access to better health care facilities . Shortages in labor market can directly influence health care practice and education . In flux of student in health studies especially in areas like pharmacy may lead to future increased unemployment in such fields . An economic policy that has revolutionized labor policies is managed care (Kovner , Knickman Jonas , 2008

The introduction of managed...