In the first part of the course, we have applied foundational economic principles to the healthcare industry. For the first part of your final project, you will analyze these same microeconomic and macroeconomic principles and their impact on the healthcare markets, healthcare service, and organization. In this milestone, you'll apply the knowledge you have gained through the first half of the course, as well as research current economic environments and legistlavite changes to gauge the impact on the healthcare industry through policy research report. 

Introduction

Economic analysis in healthcare is based on the fundamental ideology of the efficient use of available resources to maximize health benefit. It is important to note that health economics is derived from two basic economic points that is resource allocation and efficient use of resources in healthcare (Olsen, 2017). This can be understood by pinpointing the production functions involved in the provision of healthcare services. This process is not a straightforward exercise because of the complex nature of healthcare products or service. Healthcare is not like a normal commodity in the market because the desired outcome cannot be guaranteed and it’s dependent on several factors which are beyond the healthcare providers.