Economic systems and scarce resource allocation

Cons First come, first served The person who arrives at the resource first, gets to decide its distribution. Many times concert tickets, lockers at school, seats in a restaurant, and items on store shelves are distributed partially this way.

Economic systems and scarce resource allocation

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Answers to concerns about high cost and complaints about the quality of care are explained by the conditions under which administrative and care decisions are made on a day-to-day basis. This article provides an introduction to the complexities and challenges of making ethical resource allocation decisions about health care.

It introduces the ethical dimensions of decision making as concerns accountability and resource allocation in a complex health care system. Additionally, it presents a recommendation for the use of distributive justice in the allocation of scarce resources. While the subject matter is relevant for all nurses, this article focuses on nurses who are particularly interested in policy-making and management practice.

Recent incremental health reform efforts have placed increasing emphasis on market forces. These forces have in turn created incentives to change the structure of the U.

In spite of increased spending on health care in the U. Some of the answers to concerns about high cost and complaints about the quality of care are explained by the conditions under which administrative, and care decisions are made on a day-to-day basis.

According to Silvathe nursing profession has been largely silent about ethical dilemmas in management practice. Such "silence" is perplexing given the frequency of ethical problems experienced by managers.

Competent and effective nurse leaders and managers must be able to deal with a wide array of issues: This is critical not only to ensure the success of the organizations and systems in which they work but also to ensure that recipients of services obtain ethically appropriate quality care and treatment.

In the past, those who provided health care were presumed to be governed by beliefs in a set of ethical and social responsibilities that took precedence over economic concerns. Whether or not all providers have been guided by such ideals, providers, managers and policy-makers alike must now take them into consideration along with the health needs of recipients and the financial ramifications of treatment.

Today, some executives and managers are accountable to profit-oriented boards, depending upon the nature of the organization and its mission. State regulators must exercise regulatory oversight on local institutions associated with sophisticated multi-institutional arrangements.

Some of these arrangements even span a variety of communities in different states. In the face of changing institutional missions and arrangements, third-party payers are likely to impose limits on expenditures based on criteria that neither reflect nor embody the traditional altruistic values previously associated with providing health care and professional service.

The mechanisms of accountability that were once appropriate to a health care system comprised largely of medical professionals and non-profit institutions no longer apply. This new, evolving accountability is complex, involving formal structures and new regulations.

The question is whether this new accountability can ensure that public, private and professional interests health related and financial will be served.

Policy makers and managers must reconcile the ideals of community service, trust, and professionalism that have long been associated with those who provide health care, in a world in which financial performance is demanded.

Overview of Ethical Principles With the cost of health care rising rapidly, third-party payers are increasingly less willing to underwrite the cost of various procedures. Both physicians and managers alike face resource allocation decisions that were unheard of only a few years ago.

When resources are limited financial, technical and knowledge resources equitable and appropriate distribution is necessary.

Economic systems

Ethics as a disciplined study of moral decision making provides tools that individuals, organizations and communities may use to determine and justify the norms and structure the terms under which scarce resource allocation decisions are made. Ethical Principles, Context and Decision Making According to Hillersix ethical principles are relevant for health care leaders.

Policy-makers, managers and providers who face difficult resource allocation decisions may find distributive justice useful in making difficult decisions. The use of ethical principles in decision making by health care providers, policy-makers and managers varies depending upon the context.

Among providers, consideration for privacy, individual liberty, and freedom of choice is usually focused on the individual.

Among policy-makers, managers, and in public health, autonomy, the right of privacy, and freedom are recognized as long as they do not result in harm to others. From a public or organizational perspective, autonomy may be subordinated to the welfare of others or to society as a whole.

Each represents a different context.

Economic systems and scarce resource allocation

Beneficence involves doing no harm, promoting the welfare of others, and doing good. In a public or organizational context, beneficence is the overall goal of policy and practice public and organizational. As such, it is usually interpreted broadly in light of societal, population, or organizational needs.

This is profoundly different than the usual concerns of providers who focus on the more narrow term of rights of the individual. Justice, whether defined as equality of opportunity, equity of access, or equity in benefits is the core of public health.

In serving an entire population, concern is focused on equity among defined social groups. This is an especially important consideration for policy-makers and managers alike regarding the need to protect vulnerable populations and to compensate for persons with disadvantages related to health, culture, education and economics.

Distributive justice is important as it involves equitable and appropriate distribution of limited resources.It introduces the ethical dimensions of decision making as concerns accountability and resource allocation in a complex health care system. Additionally, it presents a recommendation for the use of distributive justice in the allocation of scarce resources.

Free market economies

in a set of ethical and social responsibilities that took precedence over economic. It introduces the ethical dimensions of decision making as concerns accountability and resource allocation in a complex health care system.

Additionally, it presents a recommendation for the use of distributive justice in the allocation of scarce resources. SCARCITY, CHOICE, AND ECONOMIC SYSTEMS 2 CHAPTER CHAPTER OUTLINE The Concept of Opportunity Cost Opportunity Cost for Individuals Opportunity Cost and Society Production Possibilities Frontiers The Search for a Free Lunch Economic Systems Specialization and Exchange Resource Allocation Resource Ownership Types of Economic Systems Using the.

Fundamental Economic Concepts; Economic Systems Learn with flashcards, games, and more — for free. Search. Create.

Economic systems and scarce resource allocation

allocation of resources. decision on how to divide scarce resources among different uses. Full employment occurs when an economy's scarce resources, especially labor, are .

Since resources are scarce, decisions must be made about how to allocate or distribute these resources. For example, if there is 1 doughnut left and 5 people want the doughnut, the way the group decides who should get the doughnut is a way to allocate the scarce resource (the doughnut in this case).

scarcity and allocation - Free download as PDF File .pdf), Text File .txt) or view presentation slides online.

Administrative Ethics and the Allocation of Scarce Resources