Essay about The Field Of Health Economics

1808 Words Dec 8th, 2016 8 Pages
As we have learned in class this semester, there are a multitude of topics that, together, comprise the field of Health Economics. Everything from basic supply and demand to insurance policy to the metric of Quality Adjusted Life Years has found its way into the lesson plan at some point. One of, if not the, biggest institutions that drives the field of healthcare economics (and healthcare in general) is the hospital. Surgeries, x-rays, emergency room visits, magnetic reasoning image scans and other important procedures all take place at this very important location. Organizational structure is key in any business, but it plays an especially large role at hospitals, where the stakes are especially high as far as employee job performance is concerned (human lives). There is a copious amount of literature that can be found on hospital structure, thus highlighting its utter importance in the medical field. It is important to take a look at the main “organizational forms” (as termed by Harvard Applied Economics Professor David Cutler) that hospitals fall under (Cutler). For-profit and not-for-profit are the two most common, and the differences between them are not as simple as one may think. Not-for-profit hospitals can and do earn profits, however the major difference between the two “lies in the distribution of accounting profit”, according to Duke University Economics Professor Frank Sloan (Sloan). Not-for profit hospitals don’t have shareholders to distribute the profit to,…

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