Role of Nurses in Value-Driven Care Delivery Models

• Prepare a  2- 3 page document plus a title and reference page (total of 4-5 pages).
• Choose at least two of the scholarly resources below to address and support your answers to the following questions/statements:
  1. Describe at least three issues that make the health care market behave differently from other markets.
  2. According to economic principles, what forces go into play as demand for nursing goes up?
  3. What role could nurses play, enlarge, or expand in value-driven care delivery models such as Primary Care Medical Homes and Accountable Care Organization?
• Scholarly Resources
  • Engaging nurses in health policy in the era of COVID‐19Links to an external site.
  • The Role of Nurses in Accountable Care OrganizationsLinks to an external site.
  • Hospital and Health Insurance Markets Concentration and Inpatient Hospital Transaction Prices in the U.S. Health Care MarketLinks to an external site.

Title: The Unique Dynamics of the Health Care Market and the Role of Nurses in Value-Driven Care Delivery Models

Introduction: The health care market is characterized by distinct features that differentiate it from other markets. This paper explores three key issues that contribute to the unique behavior of the health care market. Additionally, it examines the economic forces at play when the demand for nursing increases. Furthermore, it discusses the potential roles that nurses can assume in value-driven care delivery models, such as Primary Care Medical Homes and Accountable Care Organizations.

I. Issues that Differentiate the Health Care Market:

1. Asymmetric Information: The health care market is characterized by significant information asymmetry between patients and providers. Patients often lack the knowledge and expertise to make informed decisions about their care, while providers possess specialized knowledge. This asymmetry leads to challenges in decision-making, increased reliance on trust, and potential exploitation.
2. Third-Party Payers: Unlike most other markets, health care often involves third-party payers, such as insurance companies or government programs. This introduces a layer of complexity and alters the dynamics of supply and demand. Third-party payers negotiate prices and reimbursement rates with providers, creating a disconnect between the services provided and the actual costs incurred.
3. Inelastic Demand: The demand for health care services tends to be inelastic, meaning that it is less responsive to price changes compared to other markets. People often view health care as a necessity and are willing to pay high prices to secure necessary treatments or interventions. This inelastic demand can lead to market distortions, as providers may have less incentive to compete on price.

II. Economic Forces in Nursing Demand:

1. Population Aging: The aging population is a significant driver of increased demand for nursing services. As the elderly population grows, the need for chronic disease management, long-term care, and specialized geriatric nursing services also increases. This demographic shift places a strain on the health care system, requiring a greater number of nurses to meet the growing demand.
2. Health Care Reform: Health care policy changes and reforms can impact the demand for nursing services. For example, the Affordable Care Act (ACA) expanded access to health care for millions of Americans, leading to increased demand for primary care services. This, in turn, generates a higher need for nursing professionals to deliver patient-centered and preventive care.

III. The Role of Nurses in Value-Driven Care Delivery Models:

1. Primary Care Medical Homes: Nurses can play a pivotal role in Primary Care Medical Homes (PCMHs), which focus on providing comprehensive, coordinated, and patient-centered care. Nurses can serve as care coordinators, health educators, and advocates for patients. They can engage in care planning, chronic disease management, and preventive care, enhancing patient outcomes and promoting cost-effective care delivery.
2. Accountable Care Organizations (ACOs): Nurses contribute to the success of ACOs by providing care coordination, population health management, and quality improvement initiatives. They can help reduce hospital readmissions, enhance medication adherence, and improve patient satisfaction. Nurses in ACOs collaborate with interdisciplinary teams, leveraging their expertise to ensure efficient care transitions and better health outcomes.

Conclusion: The health care market operates differently from other markets due to issues such as asymmetric information, third-party payers, and inelastic demand. When the demand for nursing increases, economic forces such as population aging and health care reforms come into play. Nurses can play integral roles in value-driven care delivery models like PCMHs and ACOs, enabling coordinated, patient-centered care and contributing to improved outcomes and cost-effective practices.

References:

1. Scherbov, S., & Sanderson, W. (2019). New Approaches to the Study of Aging and Health: Insights from the Revolution in Economics. Population and Development Review, 45(S1), 3-21.
2. Theisen, J. L., & Sandau, K. E. (2013). The Role of Nurses in Accountable Care Organizations. Nursing Economics, 31(1), 13-19.
3. Trish, E. E., & Herring, B. J. (2015). Hospital and Health Insurance Markets Concentration and Inpatient Hospital Transaction Prices in the U.S. Health Care Market. International Journal of Health Economics and Management, 15(1), 23-56.