How can the knowledge of economic theory be utilized by advanced practice nurses? How can economic theory be applied in analysis of interventions?
The realization that economic theory plays a crucial role in the management of patients may promote the adoption of effective methodologies of nursing administration among advanced practice nurses. Economic theory is a decision-making model for how people allocate scarce resources. The goal of economic theory is accurate prediction of the choices people make regarding resource allocation. Among the main elements of economic models are the concepts of scarcity, utility, cost, supply, demand, price, and marginal analysis. (Jones & Yoder, 2010). The US healthcare system, for example, focuses on value-based practicing (VBP) to ensure it provides high quality healthcare, incurs low loses, and meets the customer’s expectations (Turkel & Ray, 2000). Therefore, by embracing economic principles of the economic theory, an advanced practice nurse in the can ensure that the fundamental precepts of VBP are met. Also, the nurse can advise other nurses on the steps to take to provide quality healthcare to the patients. Ultimately, the proliferation of the economic theory amongst advanced practice nurses will promote the continuity of the health institution and enhance efficiency in healthcare provision.
The knowledge of economic theory in nursing can help nurses manage scarce resources such as time. When a nurse is allocated a specific amount of time based on the patient’s needs, the nurse should ensure that each patient acquires quality care (Jones & Yoder, 2010). Consequently, the nurse will find it easy to determine which interventions are logical, time-saving, and effective. By considering the time allocated to each patient, a nurse can also develop effective intervention techniques with help of evidence-based practice. Therefore, EBP can help the nurses improve the quality of care and satisfy the needs of each patient.
Economic theory suggests that nurse managers would incorporate marginal analysis when making decisions regarding resource input and production output. Few would argue that scarcity of resources plagues our current healthcare environment. Reports of missed nursing care and rationing of nursing care because of inadequate staff now appear in the literature with increasing frequency. Decisions regarding allocation of nursing care significantly impact the financial performance of hospitals, the job satisfaction of nurses, and most importantly, the health outcomes of patients. (Jones & Yoder, 2010).
An advanced practice nurse may also determine the success of a health care system and provide recommendations to improve the quality of care based on the analysis of the healthcare system using the precepts of the economic theory.
Public health care reforms are often at odds with the realities of government economic policies. Nurses should understand economic arguments put forth to better understand the benefits and pitfalls of proposed reforms. Competition in health care is particularly problematic because economic principles of competition are often misapplied. Modern economic thought developed as society industrialized and sought to understand exchange of scare resources. Why would economics as a science cease to exist without the concept of scarcity?
