ECON7460 : Health Economics

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ECON7460 : Health Economics

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ECON7460 : Health Economics

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Course Code: ECON7460
University: The University Of Queensland is not sponsored or endorsed by this college or university

Country: Australia


Introduction : This section (one paragraph) provides a context for the report by introducing the topic and purpose of the report (i.e. mapping and evaluating the sustainability of healthcare system), briefly introducing your healthcare system and proving the structure of the assignment (i.e. how you organised your text).
Guiding principles of value-based healthcare reform : In this section you are required to provide the principles that guide healthcare delivery reform in your chosen country/state or territory in relation to:Discussion of Findings (approximately 1000 words): In this section you will analyse your findings based on the sustainability of this model in view of the ageing population, increased chronic disease, ever-increasing costs of technology and the demand on the entire healthcare system.
Market concentration
Elasticity of the supply chain
Elasticity of demand
The need for volume
Population demographics
Risk transfer
Regulatory authority
Executing the health reform framework
Recommendations : Based on the above, if you were a consultant working for this healthcare system, what general recommendations would you make? You must address the ageing population, increased chronic disease, increasing costs of technology and the demand on the entire healthcare system.
References: List of references used in the report, including at least 20 academic references.


Health economics is a study that allows a systematic identification of the healthcare problems through its economic value for the treatment of chronic disease. The healthcare system is moved away by the traditional approach and in terms of measuring its volume and output which is needed to be resolved through effective cost measurement to provide quality care to the patients suffering from chronic disease.  This theory aims to develop a behavioural understanding of both public and private healthcare providers. Moreover, the decision-making process of healthcare policies is standardized with the effective implementation of health economics at the chronic healthcare setting. It is notable that the evaluation of health care economics on chronic disease has become so popular in the present Australia society. The technological capacity of the healthcare resources is the key source of discussion of healthcare economics. The demand for public healthcare doer chronic diseases is gradually increasing over the years. Thus, to keep sustainability with the increase of healthcare demand in chronic disease, the requirement of health economics is also increasing potentially. The need for financial resources has become impactful on availing healthcare services. The ultimate aim of the economic evaluation of chronic healthcare is to assist the decision-making process for the policymakers for the treatment of the patients suffering from chronic disease. The chronic healthcare decision and values have become more explicit to sustain cost and benefit with equal balance. This study will unfold the ethical principles of chronic healthcare principles. Ten principles will be discussed for a better understanding to provide cost effective treatment to the patients suffering from chronic disease. The importance of market concentration along with the capability of the supply chain in chronic health care economics will also be discussed in the study. The importance of elasticity, volume and the demographic population will be discussed in the context of chronic health economics to resolve the chronic healthcare disease. The associated risk factors will be analysed and probable regulatory authority to mitigate the chronic healthcare risks and financial risks will be discussed. The execution of the overall chronic healthcare framework will be analysed followed by some key recommendations for the development of chronic healthcare issues keeping sustainability with the health economics. The concluding part of the study will summarise the whole discussion and will outline an overall recommendation.
Health care reform system
The traditional health care system of Australian is becoming rigid and needs to be upgraded in a proper way. The traditional chronic health care system needs to be upgraded to meet the challenges of the healthcare industry in a proper way (Oster, 2018). According to the researchers, it is seen that there is an exponential rise in the demand for chronic illness care. This present rising trend is due to the Aging population of the country. Change in the lifestyle is also responsible for the growing demand (Kindig, 2015). This is the main reason a transformation in the traditional system of the healthcare industry is needed. It is seen that due to the growing demand of the chronic illness healthcare settings it is a growing industry (Wedge & Currie, 2016). If the cost analysis is done then it is seen that the cost of chronic disease health care is increasing in a steady state. According to the data analysed by the researchers, it will continue to increase in the future. It is to be said with the increase in the cost of the quality of the nursing care in the chronic illness setting is improving at a steady rate.
 The above data signifies that the demand for the healthcare facility in the chronic disease is rising in an exponential way. If the cost management is properly done in the values-based health care settings of the chronic health care system it will have a good amount of benefit for the industry (Sampalli, Christian, Edwards &Ryer, 2015). The sustainable development is possible if the cost-benefit analysis and the cost management are done according to the demand in the value-based healthcare practice. The outcome focused value-based approach is very much important for the healthcare industry (Davidsson, 2018). The main objectives of the outcome based health care industry are as follows:

A nationally unified health system should be prevalent in case of handling the chronic disease patients. Besides national unification, it must be controlled in the regional base to serve according to the regional demands of the patient (Younossi& Henry, 2014).
Some of the important components in case of value-based chronic health care reforms are performance, information and reporting. These parameters should be properly implemented in to make the reform cost efficient and outcome focused (Davidsson, 2018).
To meet this exponential demand for chronic illness health care an efficient health force will be required to serve the nation with an outcome focused service.
To implement the values based health reform system the most important point that is the funding. If there is no appropriate funding then the reforms will not be possible in a proper way. It is very much important for the sustainability of the healthcare industry to have proper amount of funding. Sustainable reforms help in enhancing the quality and efficiency of the service given to the chronic healthcare patient in the healthcare settings (Sampalli, Christian, Edwards &Ryer, 2015). It is possible to make values-based reforms of the chronic disease healthcare settings following some guiding principles. The principles will help to implement the health care reforms in such a way that the sustainable development in the health care settings will be possible (Wedge & Currie, 2016).

Guiding principles of the health care reforms
Due to the exponential increase in the demand of the chronic disease and primary care in Australia, value-based medical reforms have become one of the essential needs. If the value-based reforms in the chronic disease and primary care are performed then there will be sustainable development of the healthcare industry (Kourlaba, Hillas, Vassilakopoulos & Maniadakis, 2018). There are some guiding principles that help in the implementation of the value-based guided reforms in the healthcare industry.  The principles are as below:

Principle 1: A holistic view of well being of the patient
Principle 2:  Service provided the centre with the patient  and his family
Principle 3: Collaboration and continuous relationship
Principle 4: A holistic team-based approach
Principle 5: Shared decision making and engagement of patient care in a proper way.
Principle 6:  Coordinating proper care across the chronic disease health care system.
Principle 7: Maintenance of equitability, affordability in the appropriate care of the patient
Principle 8: an Evidenced base system with quality care  and improvement
Principle 9: Efficient workforce and infrastructure to support the quality care.
Principle 10:  Proper funding to make the reform sustainable for the feature.

Principle 1: A holistic view of the wellbeing of the patient
According to the principle, the fundamental aim is to provide a holistic care for the chronic healthcare patient in a proper way. The total health care system should be patient oriented. The problems of the patient should be dealt with the highest priority (Mozaffari, Peyrovi, & Nayeri, 2015). According to this principle, there are broader views which should be attended if the holistic transformation of patient-centric healthcare is to be attended. This transformation in the healthcare industry includes the emotional spiritual and economical attributes. Community culture and patient-centric approach should be taken to have a holistic transformation (Ali, Marhemat, Sara, & Hamid, 2015).The Cross Sectoral relationship and economical components should be considered properly during the value-based transformation in the healthcare settings.
Principle 2:  Service provided centring the patient and his family
This principle depicts that patient should be at the middle of every transforming steps. The chronic disease healthcare setting should be totally patient-centric. It explains that chronic health care setting should be person oriented (Chiara, 2018). The social and cultural and economic background of the patients should be acknowledged for the holistic development of the care settings.  The patient’s preferences should be comprehended and respected in a proper manner (Patton & Dalton, 2015). It is said that the patient should be the partners in care planning and design. According to the Australian Commission on safety and quality in health service standard consumers can be made partners in the implementation of the value-based transformation through proper cost management (Chiara, 2018).
Principle 3: Collaboration and continuous relationship
There should be a proper collaboration between the departments in implementing the transformation needed for the healthcare purpose. In this principle, it is said that the relationship between the patient and the chronic healthcare team should be longitudinal in nature (Markowski&Dabhilkar, 2016). To provide the optimum care in the chronic illness care setting through proper cost benefit analysis is the main aim. By nurturing the health and economic relationship between the medical professionals and the patient’s holistic transformation can be possible (Yan, 2017). Through this holistic approach sustainable development in the chronic illness care setting is possible.
Principle 4: A holistic team-based approach
A holistic team-based approach is very much essential to implement the transformation in a proper way. The accountability of the medical professionals towards the chronic healthcare patient should be increased (Huljev&Pandak, 2016). A holistic team-based approach will optimize resource use and decrease the overall cost. Through proper funding and capacity building training, it should be implemented. A holistic team-based approach will help to achieve sustainable development in the transformation of chronic disease healthcare settings (Dyess, 2015).
Principle 5: Shared decision making and engagement of patient care in a proper way
This principle depicts the proper capacity building of the employees through proper training. Investment is also required that will enable the training to be conducted. It helps in enhancing the quality of service in emergency situations (Rehman, 2016). Decision-making process is enhanced through a proper capacity building. Documentation of chronic healthcare reports should be done in a proper way. Consent should be taken from the patient before starting the treatment procedure (Tappet al., 2016).
Principle 6:  Coordinating proper care across the chronic disease health care system.
Proper coordination is one of the most essential parameters needed for the sustainability of the transformation in the healthcare sector. Pro activeness enhances the coordinated care among the chronic healthcare patients (Kim, 2014). It helps to develop interpersonal relation among medical professionals in giving quality service in economic manner.
Principle 7: Maintenance of equitability, affordability in the appropriate care of the patient
This is another major reason for the reforms. There is not much lack of equitable distribution of appropriate care and sustainable cost. This can be implemented by proper economic reforms of the settings (Warshaw, 2015). It is one of the most essential requirements that must be fulfilled in chronic disease care settings.
Principle 8: the Evidenced base system with quality care and improvement
There should be more practice of evidence-based nursing. This will improve the quality care received by the chronic healthcare patient. Through evidence-based nursing and equitable distribution of quality care and proper cost management the main transformation can be in the chronic illness care settings (Hamer, 2013).
Principle 9: Efficient workforce and infrastructure to support the quality care.
Proper funding should be provided for the capacity building of the workforce. The proper capacity building of the workforce will help to enable the transformation. Infrastructure development is also essential (Hamer, 2013). The infrastructure should be upgraded with the installation of the modern equipment of nursing assessments. Steady funding from the government agencies is required for the sustainability of the transformation (Kim, 2014).
Principle 10:  Proper funding to make the reform sustainable for the feature.
Principle 10 is almost the same as principal 9. It states that for the sustainability of the transformation a steady funding source is required.
Market concentration
The evaluation of health economics for chronic disease care in Australia is helpful to understand the present care setting. Additionally, the comparison of the chronic disease care setting between Australia and the international market is effective in planning for care programs (Brunt&Bowblis, 2016). Thus, on the theory of market concentration, the objectives of chronic disease care in Australia healthcare setting are :

To provide ethically integrated care at a low cost
To provide evidence care practice to the patients suffering from chronic disease
To bring the financially backward patients under national free health check-up skims
To utilise the government resources for the treatment of patients suffering from chronic disease.

The elasticity of the supply chain
The supply chain in the Australian chronic healthcare setting has the effectiveness to provide efficient care service to the patients. The cost of the supply chain in the chronic healthcare setting in Australia is second largest (Jia, 2017). It is presumed that the supply chain cost would surpass the labour cost by 2022. The present trend of Australian healthcare supply chain is centralised and customer specific. The effective policies taken by the decision makers are helpful to reduce the supply chain cost in Australia (Johnson & Miller, 2018).
Elasticity of demand
The growing number of chronic disease in Australia is the key reason for the increase in demand for cost-effective healthcare services in Australia. The patients require ethical care, potentially developed care plans and effective health care policies(Brunt &Bowblis, 2016). The reasons for elasticity in demand are :

Advancements in the chronic care treatments in Australia
Self-management policies, regular visits and follow up treatments by healthcare professionals
The easy availability of medical services through effective marketing policies, low pricing, long trading house and quality treatment

The need for volume
There is a vast requirement of expanding the volume of chronic healthcare services on Australia. It is notable that Australia has only 3.4 active physicians per 1000 patients and 3.7 hospital bed for per 1000 chronic disease patients.  Thus, the volume must be increasingly focusing on cultural response, the direction of the goal, healthcare promotion, self-management and evidence-based and it must be cost effective (Johnson & Miller, 2018).  
Population demography’s
The effective chronic healthcare policies must be aligned with the demography of Australia. The diversified population in Australia have their specific healthcare preferences (Provenzano, 2016). The demographical chronic healthcare services include cultural respect, person-centred care and systematic approach to each of the patient (Jia, 2017). Moreover, the chronic patients under the poverty level must get free of cost health care check-up and must be included under national healthcare skims.
Risk transfer
The economic risk factors associated with the Australian chronic healthcare setting are lack of resources, the inefficiency of the caregivers, lack of effective evidence-based practices and economic discrimination in the healthcare setting. These barriers must be broken with immediate priority(Warshaw, 2015).
Regulatory Authority
The regulatory authorities of chronic health care diseases under Australian health economics system are:

Australian Commission for Safety and Quality in Healthcare(ACSQH)
Australian Healthcare Reform Alliance (AHRA)
Australian Health Practitioner Regulatory Agency (AHPRA)
Australian Institute for Patient and Family Centred Care (AIPFCC)

Execution of the health reform framework
The chronic health reform framework in Australia is supervised under the leadership of National Primary Healthcare Strategy skim. The effective execution of this healthcare reform framework can be done by supporting the paper discussed in more details identifying the key issues (Rehman, 2016). Thus, the objective of this healthcare framework is to reform the healthcare strategy for chronic disease and decrease the healthcare challenges in the most efficient manner. This would include providing proper information, effective communication, cost-benefit chronic care treatment and evidence-based practices. This healthcare framework aligns the need of the consumers and the carers (Chiara, 2018). The patient centred focus must be on the highest priority. Moreover, no negligence should be tolerated in patient care. The overall structure of the future chronic healthcare framework should be

Developing five key building blocks: Regional integration, free flow of information, skilful care givers infrastructural development and systematic financial performance.  
Directional change: Improvement in accession, skilled management, effective preventive measures and ensuring quality and safety healthcare.

Future prospect: Access to MBS and PBS plan, use of updated technology, integrated healthcare solutions, prevention activities and improvement of healthcare outcome.
The increasing demand for chronic disease is one of the biggest threats to the health care system in Australia. The requirements of preventive measures are necessary to decrease the issues associated with chronic disease.
Enhancement of official funding: Effective funding is required for both government and non-government organisations. Proper monetary resources must be provided to all the healthcare setting for the infrastructural development. The treatment process for chronic health must be expanded to the rural areas of Australia with proper funding(Huljev&Pandak, 2016). This could be helpful for the overall structural development of chronic healthcare setting in Australia.
Medical insurance: Medical insurance must be provided to all the patients suffering from chronic disease. The rise of medical cost is one of the key healthcare problems in Australia. This requires quick reform (Robinson & Tracy, 2015). Thus, medical insurance should for the all the people living under the financial problem. Additionally, the government must take initiative on proper execution of medical insurance plans.  
Maintenance: Proper maintenance is required to develop the existing situation of chronic healthcare setting in Australia.  The maintenance includes managing healthcare staffs, effective implementation of the healthcare policies and proper management of financial resources (Kourlaba, Hillas, Vassilakopoulos&Maniadakis, 2018). Moreover, low-cost chronic healthcare campaigns must be arranged properly in rural Australia to develop the healthcare situation.
Capacity building training: Effective training program must be arranged for the chronic healthcare staffs for better care. Most of the healthcare practitioners are not ethically aware of nursing care ethics, the ethical perspective of effective nursing care, development of a care management program and evidence-based nursing practice (Robinson & Tracy, 2015). Thus, an effective capacity building training can be effective for the treatment procedure of chronic diseases.
 According to the recent trend of chronic illness among the Australian population is increasing in an exponential way. It is very much necessary to perform the reforms following the principle guidelines provided in the nursing care setting.  According to the data, it is seen that a demand in the chronic illness care setting is increasing in an exponential way. Through the implementation of proper principles and cost management the transformation in the chronic disease care setting can be sustained. The holistic approach is the key to sustainable development. The proper holistic approach through effective cost management strategies should be taken to develop and transform the health care system according to the demand of the patients. The analysis of the people’s demography and market demand should be done properly for the implementation of the action plan.   The roles and responsibility of the regulatory authority are essential in the transformation. The role of the government is essential in performing this kind of transformation. If the steady funding resource is provided by the government for transformation and development of the chronic care setting it will in the holistic development of the chronic disease health care setting of Australia.
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