Economic theory mainly studies how people make decisions in strict financial and resource-dependent circumstances. Because contemporary nursing involves not only providing health services but also caring within the constraints of budgetary conditions, knowledge of economic theory will significantly improve the decision-making capabilities of practicing nurses. It will also facilitate the development of nurse leaders since they are often responsible for the budgeting and coordination of supplies (Dyess, 2016). The effectiveness of interventions can be analyzed with the help of economic theory because interventions are the process of converting resources into positive patient outcomes. Economic theory is a universal subject that has its uses even in nursing practice.
In the modern world, health delivery institutions are complex business entities. The advent of the Theory of Bureaucratic Caring, which describes hospitals as sophisticated production firms, shows the applicability of the economic theory to the nursing industry (Ray, 2018).
A production firm has resources and a process that converts those inputs into deliverables. In the context of hospitals and nursing, the firm delivers favorable health outcomes to patients, and the process which converts resources into outputs implies various interventions that are applied by nurses and doctors. The efficacy of interventions is influenced by decisions clinicians make (Perry, Potter, & Ostendorf, 2019). As the economic theory studies decision-making, it can be utilized by nursing practitioners to make correct choices. The professionals may also use the theory to analyze the effectiveness of interventions by looking at the usage of resources and the output.
Hospitals are no longer simple units but sophisticated production facilities. They incorporate a diverse range of processes that cover financial management, politics, resource administration, and technological advancements. Advanced nurse practitioners play a paramount role in this system because they not only deal with caring but also with management. The application of economic theory will allow them to make informed decisions and analyze the efficacy of utilized interventions.
References
Dyess, S. M., Sherman, R. O., Pratt, B. A., & Chiang-Hanisko, L. (2016). Growing nurse leaders: Their perspectives on nursing leadership and today’s practice environment. OJIN, 21(6).
Perry, A. G., Potter, P. A., & Ostendorf, W. (2019). Nursing interventions & clinical skills (7th ed.). Beijing, China: Elsevier.
Ray, M. A. (2018). Theory of bureaucratic caring. In M. J. Smith & P. R. Liehr (Eds.), Middle range theory for nursing. New York, NY: Springer Publishing Company.