Economics of Health Care
Dr.Amean A.Yasir ,PhD
nurses concerned with the delivery of needed community health services also must understand
how those services are financed. In an era when health care resources are limited and provider
organizations are competing for scarce dollars, it is essential for nurses to be knowledgeable
about the issues related to health care financing and about ways to obtain funding to address
identified health needs in the community. Behind the financing of health care lies the science of
health care economics. The field of economics, as a whole, is a science that describes and
analyzes the production, distribution, and consumption of goods and services. It also is
concerned with a variety of related problems, such as finance, labor, and taxation. It studies and
seeks to promote the best use of scarce resources for the greatest good of society.
The science of health care economics describes and analyzes the production, distribution, and
consumption of health care goods and services to maximize the administration of scarce
resources to benefit the most people. The goal of health economics— similar in some ways to
that of public health—is to promote the greatest good for the greatest number using
available resources and knowledge. This chapter summarizes the changing picture of health
care economics and its financial incentives and disincentives for enhancing the public’s health.
More extensive treatment of these subjects is found in the Selected Readings section.