Economic theory must be utilized by the DNP-prepared nurse. How can economic theory be applied to your proposed DNP Project?

Economic theory must be utilized by the DNP-prepared nurse. How can economic theory be applied to your proposed DNP Project?

Economic theory is concerned with choice and the assumption is made that choices are made after the consumer has been provided with full information. However, individuals who present within the healthcare sector are frequently unwilling or unable to collect the information required to make this choice. Health economics is used to promote healthy lifestyles and positive health outcomes through the study of health care providers, hospitals and clinics, managed care, and public health promotion activities. Health economists apply the theories of production, efficiency, disparities, competition, and regulation to better inform the public and private sector on the most efficient, cost-effective, and equitable course of action. Such research can include the economic evaluation of new technologies, as well as the study of appropriate prices, anti-trust policy, optimal public and private investment, and strategic behavior (Williams IP, Bryan S, 2017).

The continued growth in the economic evaluation of healthcare over the past years has led to a shortage of trained health economists globally, leading to several universities and/or national governments developing specialized health economics programs to train more health economists. One of the common problems with many of these training programs is that they only educate new health economists to the master’s level, and as such they are unable to cover the many skills needed by a successful health economist. It is important that those individuals who are involved in the provision and purchase of healthcare fully understand the background to this concept and understand some of the terms which are commonly used ( Shiell A, Hawe P, Gold L, 2018).

Without good economic analysis, healthcare is unlikely to progress and only by undertaking systematic reviews is it possible to identify alternatives to existing or new programs. Such evaluation is dependent on the quality of underlying medical evidence, and, because of this, clinical trials are now viewed as a natural vehicle for economic analysis. Health Economics is an applied field of study that allows for the systematic and rigorous examination of the problems faced in promoting health for all. By applying economic theories of consumer, producer and social choice, health economics aims to understand the behavior of individuals, health care providers, public and private organizations, and governments in decision-making (Eddama O, Coast J. A 2018).

References

Eddama O, Coast J. A systematic review of the use of economic evaluation in local decision-making. Health Policy 2018; 86 129–41.