Journal of Research in International Business and Management

Health Care Economics and Policy: Bridging Theory and Practice

Romanda Hock^* Department of Management and Entrepreneurship, De Montfort University, Leicester, UK
^*Corresponding Author:
Romanda Hock, Department of Management and Entrepreneurship, De Montfort University, UK, Email: hock_ro7@gmail.com

Received: 24-May-2024, Manuscript No. 138374; Editor assigned: 27-May-2024, Pre QC No. 138374; Reviewed: 13-Jun-2024, QC No. 138374; Revised: 22-Jun-2024, Manuscript No. 138374; Published: 26-Jun-2024, DOI: 10.14303//jribm.2024.028

Unlike other markets, the demand for health care services is often unpredictable and urgent. The elasticity of demand can be influenced by factors such as insurance coverage, price sensitivity, and the necessity of services. Health care markets frequently experience market failures. Externalities, such as the spread of contagious diseases, justify government intervention. Public goods, like herd immunity, are another reason why the free market alone cannot efficiently allocate health resources (Ashley, 2021).

This occurs when one party (usually the provider) has more information than the other (the patient). This imbalance can lead to overutilization or underutilization of health services, adverse selection, and moral hazard (Baig et al., 2019). Theories around health insurance revolve around risk pooling, adverse selection, and moral hazard. Understanding these concepts is essential for designing insurance systems that balance comprehensive coverage with cost containment (Black & Kulkarni, 2020).

Practical Challenges in Health Care Policy

Policymakers struggle to design systems that provide high-quality care to all citizens without escalating costs. The trade-offs between these three aspects are a persistent issue. Ensuring sustainable financing for health care systems is a perennial challenge. Governments must decide the extent of public versus private funding and how to manage the rising costs associated with aging populations and technological advancements (de Moissac et al., 2019).

Health care policy must navigate complex regulatory landscapes and ethical considerations, such as end-of-life care, access to experimental treatments, and the allocation of scarce resources. There is significant variation in health care quality and access between countries. Policies that work in one context may not be transferable to another, requiring tailored approaches that consider local conditions and resources (Kombe et al., 2019).

Bridging Theory and Practice

Utilizing data and empirical research to inform policy decisions can ensure that theoretical models are adapted to real-world complexities. Health economics research can provide insights into the effectiveness of different interventions and policies (Krahe et al., 2020). Implementing pilot programs allows policymakers to test theoretical models on a small scale before a broader rollout. Incremental reforms can help in fine-tuning policies and avoiding the disruption of sweeping changes (Peterson et al., 2020).

Involving a broad range of stakeholders, including patients, providers, insurers, and policymakers, can ensure that diverse perspectives are considered. This collaborative approach can lead to more practical and acceptable policies. Health care systems must be adaptable to new information and changing circumstances (Read, 2019). Continuous learning and the ability to adjust policies in response to feedback and new evidence are crucial for long-term success. Learning from the experiences of other countries can provide valuable insights. Benchmarking against international best practices and participating in global health initiatives can drive improvements (Syn & Kim, 2022).

Bridging the gap between health care economics theory and practice is essential for developing effective health care policies that improve health outcomes while ensuring economic sustainability. By leveraging evidence-based policymaking, engaging stakeholders, and remaining adaptable, policymakers can design health care systems that are both efficient and equitable. The interplay between theory and practice is dynamic, and continuous efforts are needed to align them for the betterment of public health (Zuo et al., 2020).

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Citation: Hock R (2024). Health Care Economics and Policy: Bridging Theory and Practice. JRIBM. 11: 028.