Question: add a comment to this post: Opportunity cost is a foundational economic principle that plays a significant role in healthcare decision making. It refers to
add a comment to this post: Opportunity cost is a foundational economic principle that plays a significant role in healthcare decision making. It refers to the value of the alternative when a choice is made. In healthcare systems with fixed budgets, every decision to fund a new service or technology inherently displaces other potential uses of those resources (Sampson, Leech, & Garcia-Lorenzo, 2023). A hospital may choose to invest in robotic surgery which might enhance its competitive position and attract higher acuity patients; however, the opportunity cost may be the foregone expansion of primary care, which could improve access and outcomes. If a department allocates fixed labor hours to mandatory education and administrative meetings, the opportunity cost may be reduced bedside time with patients requiring complex ventilator management or aerosol therapy (American Association for Respiratory Care, 2021). Also, choosing to implement standardized care protocols may improve efficiency, but it could limit personalized treatment plans that better address individual patient needs. Understanding opportunity cost enables healthcare leaders to make more informed decisions that balance innovation, access, and sustainability. Recognizing these trade-offs enables healthcare leaders to align operational decisions with strategic goals, ensuring that resource allocation supports both clinical excellence and organizational resilience. In healthcare, every dollar spent carries signifi
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
