Order Applying Economic Principles Assignment

Order Applying Economic Principles Assignment
Consider the health care issue that you identified in the Week 2 activity and address each of the following in a 3-4 page Word document:
Explain how economic principles can be applied to this issue to effectively guide decision making.
Demonstrate how supply and demand curves are used to accurately assess the issue.
Analyze how the cost curve can be used to assess the issue. Provide an example.
Compare capitation, fee for service, and pay-for-performance financing payment models to accurately reveal their similarities and differences.
Use at least three sources to support your writing. Choose sources that are credible, relevant, and appropriate. Cite each source listed on your source page at least one time within your assignment.
Week 2 activity:
Aging Population
The world’s older population continues to rise at an extraordinary rate. Reports
show that by 2030, one in six people in the globe will be sixty years or above. At this
time, this population will increase to 1.4 billion. Similarly, the overall population of
individuals aged sixty years and older will reach 2.1 billion by 2050 (World Health
Organization, 2022). Further, the population of individuals aged eighty years and
more senior is more likely to reach over 420 million by 2050. Biologically, aging
occurs due to the accumulation of cellular and molecular damage. This leads to a
gradual reduction in mental and physical abilities, increased risk of diseases, and
death. Several factors have contributed to the increasing aging population. These
include increasing longevity, declining fertility, and internal migration.
Order Applying Economic Principles Assignment
The aging population is driving change in healthcare. Due to the increasing
population, a staffing shortage is expected globally. Also, there will be an increased
demand for healthcare services, including in-home care, hospice care, palliative care,
and nursing homes. Furthermore, population aging will increase healthcare costs due
to the increased use of age-related treatments and procedures. Lastly, with the
increasing aging population, certain healthcare conditions are expected to challenge
the healthcare system. These include dementia, diabetes, chronic obstructive
pulmonary disease, arthritis, and cancer. Reports have shown that over sixty percent
of older adults will have more than one chronic illness by 2030 (Garza, 2016).
Managing these conditions will increase the cost of healthcare, considering the
increased physician visits and many hospital admissions among older adults.