Question

Measuring production in the manufacturing sector (factories) or agricultural sector (farms) is relatively easier. However, in service such as the health sector, it can be challenging as can come with trade-offs. Using the health industry as case study, identify the challenges of measuring production. What are the costs of benefits of using productivity measures of the health industry? What impacts will these might have on health care costs, health care delivery and all social/political ramifications? Explain

Answer 1

Healthcare industry is purely service play model where measuring product is difficult and hence is dealt with parameters like on time delivery, patient care ratios, total service offered, monthly targets, etc which are quantitative and give good comprehensive analysis.

However challenging situations like multiple forms of treatment at differential costs and measuring patients satisfaction is tedious task as it is highly variable.

The costs associations for measuring benefits of productivity is higher capital expenditure on research ajd development and additional manpower for ethical and risk management.

As results the healthcare costs groe exponentially as administration and infrastructure and legal expenses risemarginally by less than 10% which is usually passed on to patients. Healthcare delivery thus gets bjt costliet and patient quality also increases owing to ethical audit and emphasis on productivity and patients satisfaction.

Global political ramifications remain negligible unless unethical treatment ot illegal practices are still followed ljke discrimination of services and biased treatment.