The document discusses how healthcare leaders must understand how economics impacts the US healthcare system and how supply and demand shape the industry. It describes a scenario where a rehabilitation center manager has seen their elderly patient population decline due to people moving or dying. This has reduced the center's revenues. The manager must analyze cost and revenue data related to insurance payouts and suggest solutions to their director to address the demographic shift and maintain revenues exceeding costs.

1. In the present paradigm, it has become evident that operational
leaders and strategic leaders in health care must be able to
appraise how economics impacts health care in the United
States. Furthermore, it is critical successful leaders to possess
an understanding of the variables and nuances that shape how
supply and demand in this heavily regulated industry so they
may observe trends and opportunities that lead to a functional
organizational system.
Imagine that you are a manager running a unit in a
rehabilitation center. Up to this point, your primary population
of payers has been elderly patients who come into the center for
physical therapy. Recently, there has been a demographic shift
in the community. A large number of your primary population
has moved out of the area or died, which has caused a shift in
your revenues. You have been tasked by your director to
illustrate the cost and revenue numbers relative to insurance
payouts to ensure that your cost does not exceed your revenue.
Drawing on your current professional expertise and
understanding drawn from the required resources for this week,
create an initial post in which you communicate how the
potential payer mix relates economically to changing
demographics in your given community. What potential
solutions would you suggest to your director that might
overcome the demographic shift? Analyze economic theories
that are germane to your provision of services and identify one
theory that might apply to this specific situation.