Applying economic principles and tools to a health care issue

Consider the health care issue that you identified in the Week 2 activity and address each of the following in a 3-4 page Word document:

Explain how economic principles can be applied to this issue to effectively guide decision making.
Demonstrate how supply and demand curves are used to accurately assess the issue.
Analyze how the cost curve can be used to assess the issue. Provide an example.
Compare capitation, fee for service, and pay-for-performance financing payment models to accurately reveal their similarities and differences.

Use at least three sources to support your writing. Choose sources that are credible, relevant, and appropriate. Cite each source listed on your source page at least one time within your assignment. 
Week 2 activity:
Aging PopulationThe world’s older population continues to rise at an extraordinary rate. Reportsshow that by 2030, one in six people in the globe will be sixty years or above. At thistime, this population will increase to 1.4 billion. Similarly, the overall population ofindividuals aged sixty years and older will reach 2.1 billion by 2050 (World HealthOrganization, 2022). Further, the population of individuals aged eighty years andmore senior is more likely to reach over 420 million by 2050. Biologically, agingoccurs due to the accumulation of cellular and molecular damage. This leads to agradual reduction in mental and physical abilities, increased risk of diseases, anddeath. Several factors have contributed to the increasing aging population. Theseinclude increasing longevity, declining fertility, and internal migration.The aging population is driving change in healthcare. Due to the increasingpopulation, a staffing shortage is expected globally. Also, there will be an increaseddemand for healthcare services, including in-home care, hospice care, palliative care,and nursing homes. Furthermore, population aging will increase healthcare costs dueto the increased use of age-related treatments and procedures. Lastly, with theincreasing aging population, certain healthcare conditions are expected to challengethe healthcare system. These include dementia, diabetes, chronic obstructivepulmonary disease, arthritis, and cancer. Reports have shown that over sixty percentof older adults will have more than one chronic illness by 2030 (Garza, 2016).Managing these conditions will increase the cost of healthcare, considering theincreased physician visits and many hospital admissions among older adults.
ReferencesGarza, A. (2016). The Aging Population: The Increasing Effects on Health Care.Pharmacy Times.World Health Organization. (2022). Ageing and health. World Health Organization.