The US health care industry consists of a variety of non-profit organizations, for-profit businesses, government agencies, and independent regulators that all come together to impact individuals’ health and wellbeing.
But just because a business operates within the health care sector doesn’t mean it’s freed from the economic concerns that drive all businesses: how to lower costs, increase revenues, drive profit, and offer value to the end customer. Or, in this case, patients.
This is where health care economics comes into play. Below is an overview of what health care economics means, as well as a discussion about why understanding it is so crucial for those in the industry.