You reference David (2011) in your post. You stated, “The measure of opportunity cost in health care requires a comprehensive evaluation of disaggregated information for individual patients (David, 2011).” What do you mean by this statement?
Opportunity Cost In Health Care
Opportunity cost is the value of the best-foregone alternative. It refers to what consumers give up to buy what they want. Opportunity cost is classified into implicit opportunity cost and explicit opportunity cost. Implicit opportunity cost it the cost that arises when a company uses its internal resources in the implementation of a project hence no explicit compensation made for the use of the resources (Guinness & Wiseman, 2011). Explicit opportunity costs are the costs that arise when a company makes decisions. For example wages, water and electricity bills.
Opportunity cost in health care is the health benefits foregone if the dollar was other health functions. Example of the benefits includes quality health care, ease from pain, extended life expectancy. Health care organizations need to acquire resources to satisfy new health demands. The measure of opportunity cost in health care requires a comprehensive evaluation of disaggregated information for individual patients (David, 2011). Opportunity cost is important in health care because they help health care organizations and government to plan on which resources and programs can be adjusted or used elsewhere to grant quality health care.
David, M. (2011). Everything economics book. Avon, Mass: David & Charles.
Guinness, L., & Wiseman, V. (2011). Introduction To Health Economics.
Maidenhead McGraw-Hill Education Ann Arbor, Michigan ProQuest 2011