Question

reflect on the relationships between economics, legislative changes, and policies and how these relationships are important to the overall delivery of healthcare systems. What steps can you take to become active in shaping economic legislation or policies that impact the healthcare industry? Consider how economics will inform the decision making in your current or future position.

Answer 1

Introduction

Appropriate delivery of healthcare services to the general public, is of great importance to the society and the economy as a whole. Developed countries increasingly spend a large chunk of the tax collected in the form of social security for the mass population and implementation of policies which further help in improving the healthcare system as much as possible.

Over the years, development in medical science, life expectancy and overall health improvements can be credited to the policies which governments across the globe have followed and supportive legislative support and economic changes which have affected demand and supply in the countries.

A healthy population in the end is supportive of economic development in any country and is highly desirable from an economic point of view.

Case Specifics as answered in Parts: -

(1) Relationship: -

The core relationship between legislative changes and policies is such that it has a direct implication on the economics of demand and supply in any country. The legislature has the right to rule in favour or against a particular matter which largely effects policies and the demand and supply in any country. Similarly, some policies tend to increase the demand for products whereas others have a negative effect. In context of healthcare these are as described in detail

The healthcare sector has largely evolved over a period of time and is impacted by all three elements of legislature, policies & economics at the same time. The relationship can be easily understood with the help of examples as follows: -

Example: -

Consider that the government brings in mandatory tax deductions if people fail to purchase insurance policies. Such a change will affect the demand for insurance policies on one hand and on the other would reduce the prices of critical care in case an issue such as an accident may arise.  

Similarly, legislature helps in patent owners to get their fair share of market demand in the pharmaceutical industry and is heavily guarded by policies which are in its favour. This though increases the prices of healthcare yet is important to improve the quality and help in research and development.

Conclusion: -

Thus, we can conclude by saying that any policy or legislature which is passed by the government has a direct impact on delivery of healthcare and its economics. Similarly, the demand and supply of healthcare also force governments to take evasive action and change policies or consider alternative legislature as and when required.

What steps can we take so as to create an impact in the healthcare industry: -

The steps which we can take to influence economics, legislature and policies and thus creating an impact on the healthcare sector are as described.

(1) Creating Awareness: -

To call for any change to happen the biggest thing which can be done is to create awareness among the general audience. Among underdeveloped and developing nations, the basic issue of why policies or legislature tends to be against the general population is that they lack awareness. Once this awareness is formed, governments at times are even forced to implement policies which help in bridging gaps.

For example, in countries such as India, Bangladesh and others, insurance policies were neither popular nor would people spend money on the same. With rising costs of healthcare and development of these Asian countries, increased awareness and access to foreign knowledge brought out a drastic change because of which government had to allow foreign players to come in and change the insurance sector altogether. The demand once created can help in bringing changes in any society and for that awareness and knowledge are important.

(2) Being an Active Consumer: -

As an active consumer of healthcare services reviewing the same and letting the provider know the shortcomings and providing appropriate feedback to them is important. This helps in service delivery and also in bridging the gap between expected service standards of the customer and those provided.

Most Pharma companies spend billions of dollars annually to collect data on how their medicines or treatments are working or not responding. Instead of the same, if we as consumers raise our voices against or in favour of a service. It helps in the industry to grow as an overall. This also helps the government in setting policies and the legislature can also be helped by the increased awareness as described above.

(3) Seek Redressal and Revolt when required: -

Setting up bodies to increase awareness among general target audience is one way to increase the service quality. Other steps however must be taken by us as consumers when things fall short. Legislature grows when new cases come into play requiring them to deliberate and also take action if required. Our right to revolt and seek redressal has a big impact on demand and supply and also on how the government creates future policies.

For example: - Insurance laws across most developing nations have only evolved over a period of time when those that were seeking redressal reached out and the government had to take necessary steps to change policies which then had an impact on legislature and demand and supply respectively.

How economics will change current or future decisions.

Economics or the theory of demand and supply largely effect how we behave in the near future or current circumstances for every kind of product or service including healthcare.

Consider a situation in which the expected price of insurance policies is expected to increase substantially we would then turn over and consider demanding the same at the current price. Further, if the prices go on increasing, the demand for the same would fall considering that some people may not be able to purchase the services at all.

Please feel free to ask your doubts in the comments section if any.