The Impact of Economy on

the Health Care Market.

Prepared by:
Fawziah AL-Sufyani
Muneera Al-faifi
Kholod AL-sufyani

Supervised by:
Prof.Dr:Abeer Seada
Learning Objectives:
By the end of this lecture,the students should be able to :

.Differentiate between health care market & other markets

.Explore the impact of the economy on health care market

.Examine the advantages of marketing in the health care market

. Identify health Care Marketing Process

.Discuss the Interrelation Between Health Care and Economy

.Examine policy implications for the health care market

Outlines:
1. Introduction.
2. Definitions
3. Difference between health care market & other markets.
4. Advantages of Marketing in Health Care.
5. Marketing Process in the Health Care Market.
6. Interrelation Between Health Care and Economy.
7. Impact of economy on health care market.
8. Policy Implications.
9. Conclusion.
10.References.
Introduction
■ Demand for health care is increasing due to the
continuous development of new medical technologies,
changing demographics, increasing and more diversified
real income, and increasing expectations from patients.

■ The relationship between the economy and the health care

market is complex and interconnected. In this presentation,
we will explore the current state of the health care economy
and its influence on various aspects of health care.
Definitions

■ Health economic: It’s a branch of economics used to

promote healthy life and outcomes through concerned

with issues related to efficiency, effectiveness, value

and behavior in the production and consumption of

health and healthcare.

■ Marketing: social and managerial process by

which individuals and organizations obtain

what they need and want through creating

and exchange values with other

■ Healthcare marketing: is the process of
developing marketing and communication
strategies to reach new patients and improve
patient care by developing an open line of
communication between providers or healthcare
organizations and their patients.
 Difference between health care market & other
markets.
1. High Barriers to Entry:
Health care market has high barriers to entry due to
■ need for specialized skills, regulatory requirements,
and high capital investments.
■ This makes it difficult for new entrants to
participate in the market, leading to limited
competition and high prices
 Difference between health care market & other
markets.
2. Information Asymmetry:
■ Patients often lack the knowledge, expertise, and
information to make informed decisions about
their health care needs.
■ This information asymmetry between the
providers and patients results in a lack of
transparency and trust, which can lead to higher
costs and lower quality of care
 Difference between health care market & other
markets.
3. Third-Party Payers:
■ third-party payers like insurance companies and
the government pay for a significant portion of the
cost of care.
■ This leads to a separation between the consumer
and the actual cost of care, which can lead to
overutilization of services and higher costs.
 Difference between heaith care market & other
markets.

4. Ethical Considerations:
■ Health care is often considered a basic human right,
that must be taken into account when providing care.
■ This can include respecting patient autonomy,
providing equitable care, and ensuring patient
confidentiality, among other considerations.
■ This ethical dimension of health care adds another
layer of complexity to the market
Advantages of Marketing in Health Care.

■ Improved Awareness
Effective marketing strategies can raise public awareness
about preventive measures and available health care options.
■ Enhanced Patient Engagement
Marketing efforts can empower patients to take an active role
in their health through education and access to information
■ Building Trust
Through targeted marketing, health care providers can build
trust with patients and foster long-term relationships.
Marketing Process

Evaluation Implementation Planning

Marketing Process

Planning SWOT
Market product
and Marketing
phase analysis
Goals Focus
program
Marketing Process

Obtain recourses Implementation

Develop schedules phase

Compare results
Identify deviations
Evaluation
phase
.The Interrelation Between Health Care and Economy

■ Economic Growth
Improved access to quality health care can contribute to overall
economic growth and productivity.
■ Employment Opportunities
The health care sector creates jobs and stimulates local economies,
supporting employment opportunities.
■ Investment and Innovation
A strong economy fosters investment in health care innovation,
leading to advancements in treatments and technologies.
.Impact of economy on health care market

Positive impacts:
■ better affordability of health insurance
■ policies and increased demand for healthcare
services and pharmaceutical products.
■ Availability of funding for healthcare research
and development increases, which can drive
innovation in the industry.
.Impactof economy on health care market

Negative impacts:
■ Rising Health Care Costs
Addressing the escalating costs of health care requires
innovative solutions and efficient resource allocation.
■ Health Inequalities
Ensuring equitable access to quality health care remains a
significant challenge in many communities.
■ Supply chains can become disrupted, leading to shortages
of critical medical equipment and drugs.
Health Care Reform : Policy decisions

Policy
play a significant role in shaping the health
care landscape and can impact access,
.quality, and affordability
Implications
Health Insurance Regulations :
governing health insurance coverage and
reimbursement impact both health care
.providers and patients

Investment in Prevention : Policies that

prioritize preventive care can have long-
term benefits by reducing the burden of
.chronic diseases

Support for Research : Government

investments in medical research are crucial
.for advancements in treatments and cures
 CONCLUSION
Understanding the relationship between the economy and the
health care market is essential in addressing the challenges
and opportunities that lie ahead.
By leveraging effective marketing strategies and embracing
emerging trends, we can create a future where accessible,
affordable, and high-quality health care is a reality for all.
References

■ Smith, J. (2020). The Role of the Economy in Health Care. Journal of Health Economics,
25(3), 123-135.

■ World Health Organization. (2020). The impact of the economy on health. Retrieved from
https://www.who.int/sdhconference/background/news/economy-health/en/

■ Johnson, M. (2019). Health Care Spending During Economic Downturns. Journal of Health
Services Research, 12(2), 67-78.

Kotler, P., & Lee, N. R. (2019). Marketing in the age of Google: Your online strategy IS
.your business strategy. John Wiley & Sons
THANK YOU