ECO 605 Discussion 3.1: Quality versus Cost Relationship
Discussion 3.1
An example of a medical treatment that has increased in quality over the past few decades is chemotherapy. This increase in quality has also resulted in a higher price for chemotherapy. The quality increased because the chemotherapy is able to more precisely attack tumors while leaving nearby, healthy cells relatively unharmed (Mayo Clinic, 2022). This then may allow for a surgery where the tumor is removed or for radiation to kill the tumor cells (Mayo Clinic, 2022).
The quality increased due to scientific and medical advancements. The price increased because the research for these advancements is expensive and giving these medications is expensive. Globally, over $150 billion U.S dollars are put towards cancer research and treatment (Mayo Clinic, 2022). Chemotherapy agents also need to be administered by highly trained personnel. There are cancer treatment centers all across the United States that patients attend on a scheduled basis to receive their chemotherapy. The system that has been established around cancer treatment is expensive and requires specialized equipment and additional education for healthcare workers in the hematology/oncology field.
Reference
Mayo Foundation for Medical Education and Research. (2020, March 5). Chemotherapy. Mayo Clinic. Retrieved January 14, 2022, from https://www.mayoclinic.org/tests-procedures/chemotherapy/about/pac-20385033
Discussion 3.1: Quality vs Cost Relationship
An example of a medical treatment where an increase in quality results in increased costs is with microdermabrasion. Quality improvements, such as the operator skill, the products used, along with the experience will all increase the associated cost for the treatment. While one could say that a person could do a microdermabrasion treatment at home, products available off the shelf will not be medical grade and obtain the same results over time as those provided by a licensed medical esthetician working within a dermatology office. The experience and the skill level of the esthetician would also increase treatment cost because of the number of hours spent training and applying it on-the job to multiple persons where fine-tuning occurs and increased positive results ensue. That same experience and skill level would apply to the products used – there are many more levels of ingredients and with that, knowledge of the effects would also increase cost.
Utilizing our textbook, there are a few different factors where increased quality correlates to increased cost for the example of microdermabrasion treatments. Costs of production resulting from changes in the price of inputs relates to higher quality products being used resulting in increased costs paid. Changes in technology used in the production of goods or services provided. This relates to the machine used for microdermabrasion, multiple types at a dermatologist versus very few at the local Walgreens or CVS. Changes in the general environment (economic, physical) would relate to having few experienced and skilled estheticians which would increase treatment procedure under licensed medical provider establishments.
Hicks, L. L. (2021). Economics of health and medical care. (7th ed.), Chapter 6, pages 93-103. Jones & Bartlett Learning. ISBN-13: 9781284183535
Discussion Guidelines
Initial Post
Provide an example of a medical treatment or medical procedure in which an increase in quality also resulted in an increase in cost. Describe how the quality increased and why this resulted in an increase in cost.
Response Post(s)
As follow up, post a response to at least two of your peers. Provide additional reasons as to why an increase in cost resulted from an increase in the product’s quality. Suggest how these changes may impact the end users of the product.
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