The role of economics and policy in shaping the healthcare workforce and care outcomes

Abstract

Healthcare economics informs policymakers at the macrolevel and microlevel, ultimately functioning as a key driver of policy change. The appropriate use of economic incentives, including legal liability, is a powerful force for changing provider behavior. Each states licensing board still defines and regulates qualifications, so Advanced Practice Registered Nurse SOP laws vary from state to state. Drivers that incentivize providers to prescribe less expensive generic medications demonstrate the value of healthcare economics on healthcare costs and outcomes. In fact, health economic concepts inform policies regarding the healthcare workforce supply, demand and distribution of resources, all of which impact quality of care. Ultimately, it has been found that in states with full SOPs, patients had better quality outcomes for measures sensitive to primary healthcare.