Please write a discussion post reply of 300 words to the following post. Must have at least 2 scholarly peer-reviewed sources using APA format. Sources must be within the last 5 years. Must include one biblical integration that is NOT to be listed as a resource. Original post instructions are listed here: Discuss the ways in which the concept of elasticity informs strategic choices.
Post you will reply to is here: Healthcare in the United States (U.S.) strives to deliver an adequate supply of care to meet the needs and demands of the patient without alienating the consumer or organization in the process. Lee (2019) explained how such efforts involve the manager making strategic choices surrounding the concept of elasticity, which is a principle that influences income and price as it relates to quantity and demand. Foremost, managers must be able to interpret how sales impacts price and how “changes in prices affect revenues directly and indirectly”, correlating to change among products and services (p. 126). Healthcare facilities are in the business to influence the consumer into utilizing and ultimately purchasing the product/service they have to offer. Nevertheless, healthcare delivery institutions have overhead costs and supply management that the agency economist and manager must consider. This is in addition to the factors that influence demand including income, status, and needs of the patient.
Bäuml et al. (2022) conducted a study that outlined a relationship between price and income elasticity corresponding to hospital length of stay (LOS) and likelihood of patient incurrence of nosocomial infection. The latter is categorized as an in-hospital related illness/disease and a reasonable concern the longer a patient stays at the healthcare facility. The authors expressed that consumers categorized within a lower income rely upon emergency departments (ED) and forego preventive care with a primary care manager, which leads to a longer LOS and amplified exposure to in-hospital maladies (Bäuml et al., 2022). Because of these findings, it is vitally important for healthcare managers to comprehend measurement components of LOS, as well as why LOS is an important elasticity metric to monitor.
Vinh et al. (2019) conveyed many financial and therapeutic advantages to shorter LOS. Specific benefits include a change in procedural dynamics that correlate to expense management completed through supply/service allotments and appropriate utilization of provider and patient-hours (Vinh et al., 2019). Moreover, regulation of LOS leads to “reduced medical errors and hospital-acquired conditions”, in conjunction with efficiency in throughput of patients (p. 170). Secondary to organizational productivity, the patient is provided with the benefits of adequate/acceptable healthcare delivery at a price that is more reasonable and affordable (Vinh et al., 2019). Such measures are strategized via utilization of hospitalists, acting as a complement to cross-price elasticities and increases consumption (Lee, 2019). Hospitalists work within the hospital setting with much of their time dedicated to managing procedures and ensuring achievement of processes as effectively as possible (Vinh et al., 2019). Through their studies, the authors ascertained that hospitalists within the clinical setting reduce cost, improve quality, and certainly minimize LOS (Vinh et al., 2019). Hospitalists are not the only organizational resource that influences elasticity, specifically price elasticity of demand.
Adie et al. (2022) expounded upon elastic demand when they pointed out that cost and availability to meet with competent doctors/providers are two of the “important factors impacting patient decision making” (p. 140). Cost and quality influence consumer behaviors within healthcare systems and reinforce the necessity to gain favor among such clientele (Adie et al., 2022). Lee (2019) emphasized the requisite to consider these healthcare benefactors when exploring the concept of substitution. It is in human nature to be resistant to change. Although managers can replace a healthcare product with little ill effects, replacing an experienced provider that has rapport with the consumer and aids in comfort has implications upon the healthcare system (Lee, 2019). Correlation is not causation, but healthcare managers do have choices to make when examining and strategizing supply and demand where their actions and words have outcomes.
Vocalized in Ephesians 4:29 (2023), “Do not let any unwholesome talk come out of your mouths, but only what is helpful for building others up according to their needs, that it may benefit those who listen” (NIV). Within the context of this Scripture passage, some heard the Lord’s Message while others did not. Yet, hearing and listening are not always reciprocal. The same is said of the Word and The Great Commission. Messengers share the good news of God’s blessings meant to benefit mankind even if others are not accepting of such news. Healthcare managers utilize elasticity in a similar sense. Within an evolving dynamic, healthcare settings strategize and forecast. Healthcare facilities choose to integrate their own delivery of products or services with a focus on price, cost, and income. Such collaboration of concepts and ideals correspond to effectual practices toward a long-term level of care to the patient in need of honest attention. Christian managers and leaders within a healthcare system must be messengers for good adopting and adapting to the needs of the patient (God’s flock) for the physical and spiritual benefit of all.
References
Adie, J. W., Graham, W., & Wallis, M. (2022). Factors associated with choice of health service delivery for after-hours, urgent, non-life-threatening conditions: A patient survey. Australian Journal of Primary Health, 28(2), 137-142. https://doi.org/10.1071/PY21078Links to an external site.
Bäuml, M., Dette, T., & Pollmann, M. (2022). Price and income effects of hospital reimbursements. Journal of Health Economics, 81(102576), 1-31. https://doi.org/10.1016/j.jhealeco.2021.102576Links to an external site.
Lee, R. (2019). Economics for healthcare managers (4th ed.). Health Administration Press.
New International Version. (2023). Zondervan. (Original work published 1978)
Vinh, K. P., Walston, S. L., Szychowski, J., & Hernandez, S. R. (2019). The effect of hospitalists on average length of stay. Journal of Healthcare Management, 64(3), 169-184. https://doi.org/10.1097/JHM-D-18-00042Links to an external site.