Economic Tools and Concepts

1133 Words5 Pages
Economic Tools and Concepts
HCS/552 University of Phoenix
September 3, 2012
Professor Hamilton

Economic Tools and Concepts
The focus of this paper is to present economic tools and concepts pertaining to a health care issue. The issue is nursing shortage. Nursing shortage is an ongoing issue for the health care system. A supply and demand curve will be presented on the issue of nursing shortage. A marginal analysis will be presented. These tools are designed to explore and evaluate the nursing shortage. Registered nurses (RN) are the largest group of health care professionals in the United States, strengthening the entire health care delivery system (Caron, 2004). It is
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73). These efforts also are to improve the nursing shortage crisis.
Marginal Analysis
Organization need to understand how a nursing shortage affects the quality of care and the perception of the organization. A market analysis is a way determining how many nurses and what resources are needed to produce high quality care for the patients. “Marginal analysis is most effective in the setting of an accurate and valid production possible frontier (PPF) or curve” (Jones & Yoder, 2010, p. 45). As an administrator for the nursing units, this would entail assessing the number of nurses on duty with the volume of care provided to evaluate the efficiency of the unit. “Efficiency in medical care is not just a matter of technical excellence and minimizing the cost of production. More often, it depends on how much is produced and which patient gets treated” (Getzen, 2007, p. 27). Organizations need this understanding to maintain the expectations of the patients. Patients expect high quality service, and it is an organization responsibility to provide such resources to get the service done. Patients do not want to hear about understaffing, they just want their needs met. Marginal analysis provides the assessment of the organizations resource inputs and production outputs.
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