Supply and Demand Solution Summary
Economics is the “the scientific study of the choices made by individuals and societies in regard to the alternative uses of scarce resources which are employed to satisfy wants” (Rodda, 2004, p. 1). One basic principle of economics is supply and demand, which is considered the most useful concept in economics. The theory of supply and demand is a powerful tool in predicting future behavior. Supply and demand is two key concepts for health care.
Problem
Baby Boomers make up about 78 million Americans. According to Sanderson (2010) “they account for 90% of nursing homes, 38% of emergency medical responses, 34% of prescription, 35% of hospital stays, and 26% of physician office visits” (p. 2). The Baby Boomers will need health care so the demand for employees will continue to increase over the next decade and beyond (Gigane, 2012).
“The Baby Boomer generation is aging and will need more health care support (demand) over the next few years. “Nurses and primary care physicians (PCP) will be needed (supply) to meet this demand. Reduction in Medicare payments leaving PCP’s scrambling to keep their practices complicate the supply chain for this increasing demand” (UOPX, 2012, para.). According to the American Hospital Association “a Boomer population that is more ethnically and racially diverse will require delivery systems and caregivers that are sensitive to cultural differences and how those differences impact care” (p. 7). The nursing shortage problem is the increasing demand, and nurses going into specialty fields, and aging of the Baby Boomer nurses. Physician shortages are because of new doctors not going into fields that have high need, such as geriatric care, orthopedic care, and endocrinologist as well as cardiothoracic surgeons.
Requirement
The Baby Boomer Generation brings a requirement of more health care. The majority of increase is required with general practitioners and nursing numbers. There are also other medical professions that will be required to help treat the Baby Boomer Generation. One of these other professions is holistic medicine. As Baby Boomers become elderly with chronic pain, the patients may turn to holistic medicine to help the symptoms. Other providers that will see increases in patients are chiropractors, acupuncturists, and massage therapists (Sanderson, 2010).
Medicare Payments. According to Donvan (2010) article “the increase in the number of people eligible for benefits paired with the rising costs of health care and longer life spans threatens the program's sustainability. It could force the administration and Congress to come up with a plan to reduce costs, either by cutting benefits or raising taxes” (p. 1). In addition to the possibility of continuing decreases in reimbursement, PCP also has to deal with the increase of liability cost. These situations and better pay are leading those interested to becoming physicians are making the decision to pursue specialty medicine (Lubell, 2008).
Proposed Solutions. The approach to solve the shortage of health care professionals is a three-prong plan recruitment, reimbursement, and retention. Recruitment plans include advertising to young people at schools and job fairs to encourage them to select the medical profession. It will also target under-educated adults or those looking for a new career.
Reimbursement plans already exist for people who can use tuition funds from employers. People can obtain entry-level jobs at health care facilities and complete medical degrees as they are paid to train. Other people do not have life circumstances or tuition opportunities, and federal, and state funds are required to assist with tuition. These loans must be forgiven as the individuals work in the field. The last step is recruitment. Existing and new professionals require incentives, such as increase pay, benefits, and vacation time that will encourage them to stay in the field until retirement.
Conclusion
According to The American Hospital Association (2007) health care of the future is changing daily, Baby Boomers will require more control over his or her care as well as advanced ways of delivering the care that will be essential to meet the increased demand and the growing incidence of chronic disease. New technology will make it easier to deliver care remotely through telemedicine (p. 21).

References
American Hospital Association (2007) When I’m 64: How Boomers Will change Health Care Retrieved from EBSCOhost
Donvan, J. (2010, December 31). Baby boomers expected to drain Medicare ABC World News Retrieved from http://abcnews.go.com/US/baby-boomers-projected-drain-medicare/story? Id=12507968#. T24o7Xg9oRl
Effects of baby boomers on nonprofit hospitals and Medicare (2008) Retrieved from http://wwwpugetsound.edu
Gigane, S. (2010) CNBC.com
Retrieved from http://www.cnbc.com/id/35524106/how-boomers-will-impact-the-health-care-industry.html
Lubell, J. (2008). 'Primary care isn't dead'. Modern Healthcare, 38(8), 24

University of Phoenix (2012) read me first HCS 552 week two. Retrieved from University of Phoenix, HCS552 website.
Sanderson, E (2010) The Rising Health Care Needs of Aging Baby Boomers Retrieved from http://medical-careers-review.toptenreviews.com/the-rising-health-care-needs-of-aging-baby-boomers.html