Economic Tool and Concepts

The health care industry has been experience for many century the shortage of nurses. It is perceive by the health care industry the shortage of nursing supply than the demand across the country. The demand for nurses in every health care organization growth in a daily basic as the technology advance. The consumers are always demanding for more personalize and quality of health care services at the time they are seeking for health care delivery creating nurses supply to be less in every health organization.

A few probable reasons for nursing shortage within the lath care industry can be the number of nurses in the workforce with a close retiring date, immigrated nurses from other country that works under constrained work permit, and also the population growth. As population increase the requirement for health care providers and services the growth of nursing and medical providers’ shortage will be notable. According to Gotten (2007), “There has recently been a growing recognition that instead of a surplus, a future shortage of physicians may occur. Since the number of U.

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S. Medical graduates has not kept pace with the growth in U. S. Population” (Chapter 7, p. 161). The nursing shortage and medical providers has become extremely demanded within the health care industry to provide a quality of health care. The following information will define economic concepts such as supply curve, demand curve, marginal analysis, and elasticity. According to Carbon (2004), “Currently, the emerging shortage of Reunion’s a real threat to the nation’s health care system. Urn’s are the single largest group of health care professionals in the U. S. Buttressing the entire health care delivery system” (Para. 1). Supply and Demand Curve Supply and demand curve are an important factor in determinate the amount of stirred nurses in need to deliver a quality services to high demand of patients. When the demand surpass the existing resources (supply) the quality of services will decrease. The graph below show the nursing shortage throughout the United States in combination with two major factor, such as fewer nurses go into the nursing career and the nursing workforce getting decreased by many nurses retiring from their Jobs.

The graph also show the projected expectancy of nurses as a result of this two major factor creating nursing shortage of more than 1 million nurses in the United States by 2020. The demand curve continue to increase where the supply (nurses) will remain consistent. According to Gotten (2007), “The demand curve is drawn sloping downward to express the economist’s insistence that the quantity demanded will always fall as prices rise (assuming all other conditions remain constant), a generalization known as the Law of Demand” (Chapter 2, p. 25).

By Rebecca index. HTML If the supply curve is changed the cost of the health care will increase by the increase of nursing salary and providers to coverage the shortage of medical staff to provide quality of care. According to Gotten (2207), “The supply curve is fixed, or retrial, and increases in demand do not result in an increase in quantity, but in increased profits for suppliers known by economists as “rents” (Chapter 6, p. 153). If the projected workforce reduce by 2020 the scale-salary will increase to appeal more people into the nursing career.

Currently, the health care industry is struggling to pay nurses and maintain a reasonable salary for the amount of work done in a daily routine. Marginal Analysis The health care industry is aware of the important of acquiring nurses available to cover the demand for the organization and to provide a quality of care. The health care industry are putting in place many strategies to increase the nurse workforce such as establishing nurse patient ration, appealing benefits package, and flexible schedules.

Therefore, health care leadership will assess how they can improve the productivity of the facility by calculating the numbers of nurses needed per shift taking in consideration the volume of care provided to estimate the effectiveness of the facility. According to Gotten (2007), “An economist will use marginal analysis to optimize, moving toward a maximum net benefit in small steps. To apply principles of examination and use mathematics to estimate values, economists must abstract from other elements, ignoring some of the complexity of medical conditions and framing the issues in terms of dollars” (Chapter 3, p. 5). Wage Elasticity The wage elasticity curve rely on the amount of the supply that reacts to the variation in changes in wage. According to Idea (April is found that the short term wage elasticity of supply is not significantly different from zero, and hence the employment trends in the nursing labor market follow a cobweb pattern, where the quantity supplied adjusts to exogenous increases in demand, but with a lag, causing shortage in the meanwhile” (Para. 1).

The nurses wage elasticity will various by the amount of alternative work by substitutability of Job outside the health care facility and the ability to move to different location to perform other Jobs than are not hospital base Job. Based on this definition the health care industry will be measured the wage elasticity by the percentage of increase spending in nurse’s wage to improve the nurse’s shortage relative to each nurses. Conclusion The health care industry is working toward improving the quality of care and reducing the cost of the health care delivery.

Nursing shortage is a big factor in improving the health care industry and how the care will be delivered. After a health care organization measures a supply and demand curve, the implementing of strategy occurs to target new nurses and to growth the nurses career. In the upcoming future is projected that the nursing shortage will keep increasing although the demand will be rising creating problems to the health care industry to supply nurses to cover the demand. Economic Health care bring to the health care industry the quality of care with the same amount of nurses by doing a marginal analysis and wage elasticity comparison.

The future of nursing shortage depends in all the new implementations that the health care industry have in place to appeal to the population to go to nursing career and increase the nurse workforce. References Idea, N. (2003, April). The labor market of nurses: A cobweb model.. Retrieved from http://disconsolation. Iii. Du/CGI/vivisection. CGI? Article=1001;context=icon_honor Gotten, T. E. (2007). Health economics and financing. (3rd deed. ). Hoboken, NJ: John Wiley ; Sons. Session, P. (2006,). Solving the nursing shortage [Blob post]. Retrieved from Visual Informatics: http:// www. Vicariousness’s. Com/index. HTML