Understanding economic modeling aids in decision making.
With the problems some hospitals are facing in raising capital, the importance of careful economic analyses increases. Four economic models, the demand model, economic feasibility model, economic impact model, and econometric model, can all be used by the healthcare industry to perform a thorough analysis. By doing economic analyses, hospitals will be able to more effectively allocate scarce financial resources and identify potential returns and risks associated with investments.
Decision Making, Organizational↗