Aspects of Utility in Healthcare Industry

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Defining the Concept of Utility

The concept of utility is closely associated with the value and benefit that a specific product or service brings to a consumer. When consumers buy goods, they seek to get the maximum benefit from it, either physical or psychological. In this respect, utility contributes much to determining to what extent an individual is willing to acquire a product. If the utility exceeds the price, a consumer gets the maximum benefit from the purchase. The greater the benefit or pleasure from the product is received, the greater utility it will have (Finkler et al., 2007, p. 57). In case the utility rate is minimal, we refer to such concept as marginal utility (Ward, n. d.). These concepts significantly influence business management in the sphere of nursing (AmosWEB, 2011). Specifically, increase in the utility of nursing services is possible through introduction of greater quality of care and improvement of the benefit package for the patients.

With regard to the above-presented considerations, the true patients preferences can be identified through analysis of patients explicit choices (Bennet and Stinson, p. 16, 1998). In this respect, the quality of services and efficiency of security managers can be presented as the main pillars of enhancing the utility values of the patients.

Providing a Brief Example from Personal Experience

When a person buys milk, he/she can receive either physical or psychological benefit depending on persons preferences and needs. In case person buys milk for precaution methods for preventing acute respiratory disease, he/she will definitely get physical benefit. If an individual purchases the product because he/she get the maximum pleasure from it, the product has a psychological benefit. However, due to the fact that not all buyers have equal utility values pertaining to a particular product and the average information about the benefits and utilities, it is possible to define the overall demand and supply rates of a product.

Providing a Brief Example in the Context of Healthcare Industry

Working as the Director at the Ambulatory Center, I realize the apparent connection between nursing services and business area. In particular, much importance should be attained to the patients concerns with the quality of care and results of treatment. Owing to the fact that the majority of services provided at hospital are self-paid, patients should be motivated to test the products before buying those. Absence of insurance, therefore, can be substituted by a collaborative approach to treating patients implying the introduction of high quality health care and effective behavioral treatment of patients. While taking into consideration cultural and psychological backgrounds, it is possible to increase the utility values of our patients.

Aspects of utility are relate to patients who apply to breast reconstruction services. Due to the fact that our hospital ensures professionalism and competence of the nursing staff, the application of high quality equipment is also indispensible to meeting our patients demands.

Competition among hospitals is also a crucial component influencing nursing activities. Each hospital or health care organization strives to introduce the best options for their patients and provide them with professional support. In this respect, acute center introduces utility raising strategies for increasing the patients demands. Aside from strong technical support, transparent system of management, financial insurance, hospitals are also inclined to introduce innovative approaches to treating patients. In such a manner, many organizations can gain recognition and increase their performance among other competing hospitals.

References

  1. AmosWEB (2011). A PEDestrians Guide to the Economy. AmosWEB.
  2. Charles, L. B., and Stinson, T. J. (1998). Cancer Policy: Research and Methods. NY: Springer.
  3. Finkler, S. A., Kovner, C. T., & Jones, C. B. (2007). Financial Management for Nurse Managers and Executives. US: Elsevier Health Sciences.
  4. Ward, W. (n. d.). Foundational Economic and Accounting Concepts. Walden University.

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