The study of economics allows insight into systems that regulate populations of people. The two main sub fields of this disciple are microeconomics and macroeconomics. Microeconomics focuses on the behavior of individuals and firms within markets. Macroeconomics on the other hand, is concerned with large-scale issues related to markets as a whole. (Krugman, P. & Wells, R., 2018). Healthcare, as a system, has become one of the largest industries in the world, according to Johns Hopkins (The Economic Impact of the John Hopkins Healthcare System, 2015), and is projected to continue growing exponentially. This fact is expressed in the growing percentage of public and private health expenditure in relation to the Gross Domestic Product. In other words, the growth rate of health spending is higher than the rate of GDP growth (Economic, 2015). Adding more years to each individual’s lifetime means that, on the whole, people will have more years during which to become ill. This means more hospital stays and more prescription drugs being consumed. The health system, the set of institutions that care for the health of citizens, is of growing importance in economic systems.

Economic science is equipped with analytical tools for the allocation of resources that provide answers and solutions to problems of accessibility and efficiency in the production and distribution of goods and services (Krugman, 2018). However, the economic concepts of demand, supply, production and distribution take on a special meaning when they refer to goods and services intended for the health of human beings. The United States, according to the OECD, is currently spending twice as much on healthcare per capita as every other advanced industrial nation (Economic, 2015), which negates the idea that healthcare is functioning like a normal competitive market.

In most cases, situations that economists would call optimal for an ordinary material good, would be considered socially unacceptable when referring to health. Decisions about how to allocate doctors’ and nurses’ labor, whether to build a new hospital, whether to pass a new law, how much research to put into a new drug and once the research has been completed, decisions about how to price the drug, are made almost solely based on questions related to economic principles. Where will labor be most valuable? How can we find the most cost-effective materials for the hospital? How much did it cost to develop this drug, and what kind of long-term returns can we expect from it? People asking these, and other healthcare-related questions, will turn to those with knowledge of economics for the answers. With exponential growth expected in the global healthcare industry (Economic, 2015), being knowledgeable of the issues facing the industry and familiar with the players involved will prove invaluable.

There are various indicators used when discussing a healthcare system; access, quality of care, and economic efficiency (Raghupathi, W. & Raghupathi, V., 2014). The indicator of most importance to the researcher or the government directly determines their views on the functionality of the system. The indicator that researchers are most focused on is determined by their views on healthcare as a right or a commodity. If healthcare is viewed as a commodity, then quality and economic efficiency become the most important indicators of system functionality. If healthcare is viewed as a right, then access and quality become the most important indicators of the systems functionality. There is no way to balance economic efficiency, access and quality in a healthcare market. One or possibly two of the indicators must be sacrificed.

The balance of access, quality and economic efficiency in a healthcare system is determined by the identity and goals of the price-setters (Health, n.d.). Healthcare does not follow