Implications of Health Economic Concepts for Healthcare Coursework

Implications of Health Economic Concepts for Healthcare - Coursework Example In the health care, accesses to medical services are always on high demand. However, there is a shortage of medical practitioners who can help in treating people (Edwards, 2001). This has an effect of increasing the medical costs that entrepreneurs will charge. This is because there is a shortage of medical practitioners, and the demand is high for the services of these practitioners. Another example is on generic drugs. Because of the many and great supply of these drugs, they are cheap when compared to the original version of these drugs (Ko, 2013). The law of supply and demand denotes that when supply is high, then the prices of the products will be low. The experiences of a variety of health care organizations are able to demonstrate the fact that the demand of health care services is not insatiable, and they are predictable. It is possible to predict the advice, appointment, or the message of a health care service provider, basing on time, population, and scope of the practice of the provider (Dalton, 2012). It is possible to anticipate periods of low or high demand by analyzing the demand data that is collected, based on the requests recorded in electronic health registers, or accounting books. An health care system can use these predictions for purposes of matching the supply of its services to the various needs of patients for a particular service (Lee and Kim, 2012). Most people believe that the demand for health care services is inelastic. For example if a person is sick, then he or she will not be very sensitive to price. A person suffering from malaria, typhoid, etc, will pay the price of medical treatment, irrespective on whether it is low, or high. However, the exception to this principles or rules touches on the purchase of eye glasses, plastic surgery, elective surgery, etc. These are considered luxurious health care services, and it is only for the preserve of the rich (Dalton, 2012). In