Health Care Effect on the Economy

Health Care Effect on the Economy


            An integrated delivery system refers to a network of health care firms that are under the management of the parent company. Most of the IDS consist of a network of medical experts only or doctors and hospitals while others consist of HMO component (Gedeon, 2006). The term integrated delivery system is commonly used in defining an organization that plays a role of providing continuum of services in health care sector. Robot technologies have continued increasing its importance both in reality and imagination. Different robots have emerged in the economy that helps in improving the quality of work done and reducing operational cost in most organizations. In Kilic, In Kose and In Ertan (2013) postulates that even though most of today’s robot are intelligent, many companies have increased strides concerning their application. Industries and other organizations including medical sectors use robots in performing of highly precise, specific research and dangerous tasks including surgery in hospitals. St and Still (2007) argues that robotics have been entering the field of medicine slowly. Absence of crossover between medicines particularly in the surgical unit is at an end. Robots that ease surgery operations are strongly entering into the field.

Telesurgical robots have been applied in performing trans-continental cholecystectomy different surgical robots including routine arm maneuver, endoscopic cameras, voice activated cameras among others are being approved and marketed and applied in performing different procedures. However, it is seen as in future, the development of robotic surgery will be profound as paradigm shift.

Economic aspects

            In implementation and incorporation of robotic unit in the surgery sector, different economic aspects must been put into consideration. Gedeon (2006) states that robots increase the quality of the work performed reduce cost and improve the efficiency in operation. Organizations applying robots tend to perform the operations faster because the computerised machines perform the tasks that the human being can perform and perform at a faster rate as compared to human beings. Application of robots tends to increase the level of unemployment in the area. Robot unit in the surgery department would reduce the number of surgeons from the sector.


In Kilic et al., (2013) postulate that automated robots has the potential of dramatically improving the quality of the product or service delivered. The management of the integrated delivery system in Denver should focus on the quality difference that can occur due to application of robots in performing different operations in the theatres in comparison to when specialised personnel are used to handle the tasks. Clear testing of the technology should be conducted before purchasing the unit for the management to be sure or certain concerning the effectiveness and the quality to be produced by the application of the technology Gedeon (2006) records that the application of most robots are performed with high repeatability and precision in most of the times. The high precision and repeatability can be hard to achieve through the application of other techniques of performing the operation. Technology is consistently improving and therefore most robots in different organizations and improvement in the level of repeatability and precision that qualified and experienced workers cannot provide. If the quality of the services performed by the robots outweighs the quality of professional medical assistants and surgeons, the management of integrated delivery system should consider installing the unit in the set-up of the medical centres in Denver.


            The management of the integrated delivery system should consider the speed of the robots to be incorporated in the organizations. The work output performed by the machines should be compared with the speed of the workers in the organization. The speed of the robots determines the efficiency with which the tasks are performed in a firm. St and Still (2007) postulate that automated robots have the ability and potential of employing or working at a constant high speed without pausing unless stopped by the supervisor, without sleeping and going for vacations as compared to professional human beings. The manufacturers of the machines to be incorporated in the medical set up in Denver should explain the speed of the tools and practically demonstrate to the management and other stakeholders in the set up to convince them about the importance of the robot unit in boosting the production. The time that would be used by the robots in performing an operation would determine the number of operations performed that would determine or affect the profit accruing from the use of robots.

As In Kilic et al., (2013) state, in choosing the production techniques, an organization should select the one whose productivity is high in comparison to the other techniques. The higher the productivity of the robots together with the quality of the services rendered would determine the profit made by the firm and create loyalty of the clients to the organization. The stakeholders making the decision concerning the purchase of the robot unit in the integrated delivery system should therefore consider the production speed. The speed would help in reducing overloading of unhandled cases in the orthopaedic centre.


Purchase of robot unit would involve heavy investment by the organization. Before purchasing the unit, the stakeholders making the decision should make an economic consideration of the savings that the technology would bring to the organization in substituting other techniques involved in the provision of similar services (St & Still, 2007). The implementation and installation of the unit in the system would translate to elimination and reduction of the professionals that used to perform the task. The management should take into consideration the savings that the robots would bring to the system in elimination of the employees. The robots require less labour involvement where only the supervisors are required to oversee and to some extent control the operation made by the machines. Robot work has return on investment calculator that help in determining the amount of financial and human resources that a robot can save. Furthermore improved safety of the workers would encourage financial saving with decreased insurance and health care concerns for the management and the government in the country. While focusing on the savings from the investment, the decision makers should consider the quality of the services offered and customer satisfaction which act to encourage the patients to the service creating royalty and boosting the return made by the organization.

Cost and other expenses  

            Gedeon (2006) postulates that the initial cost and other expenses used by an organization may be significantly high. Before purchasing the robotic unit, the decision makers should consider the cost and maintenance cost for the unit.

Stakeholders in the scenario

            A stakeholder is a group or individual who have concern or interest in an organization. The stakeholders can affect or even be affected by the actions of the organization, policies and objectives (St & Still, 2007). Stakeholders in a set up may include directors, creditors and employees. In the given scenario, the stakeholders include the CEO of the organization. The CEO should oversee every activity that is undertaken in every branch or subsection of the organization. In the purchase of the robotic unit, the CEO should be involved to give insight and advice concerning the investment. Department manager of the orthopaedic centre should be among the team to provide the activities and services that the robots are supposed to offer to the clients. Suppliers of the robotic unit should also be involved in order to provide the information concerning the unit including cost, speed and functionality. The purchase of the unit can have significant effects on the clients. A representative from the general public should also be included in the group to demonstrate the reactions of the clients and to represent the patients in the group.

Impacts to the stakeholders

            Purchase of the robotic unit would result to increased speed of handling surgical cases that the organization faces. The increased speed would result to high number of cases attended per given time period increasing the returns of the organization due to increased efficiency. The clients that consult the organization can find more satisfaction to the company because of the speed of handling cases. The implementation of the unit can result to decrease in the amount charged to the clients. The supplier would benefit from supplying the organization with the unit to ease operation. The supplier would also be involved in educating the management and the supervisor on the control and maintenance practices to be carried out on the system.

Furthermore, the repair and spares of the unit would depend upon the suppliers to provide and fix on the installed system (Gedeon, 2006). The unit would increase the number of clients seeking services from the organization increasing the revenues and profit. The share received by different investors in the company would be higher. The general community would benefit from increased service delivery. The purchase and installation of the unit would benefit the department manager through acquisition of new and advanced knowledge concerning the use of the robots in the medical set up and in the management of supervisors. The unit would act to reduce the number of attendants in the organization thus raising the level of profit obtained from the operation. The CEO of the Integrated Delivery system would benefit from increased operation of the organization.

Factors that will impact the decision

            According to In Kilic et al., (2013) many diverse internal and external factors affect decisions concerning implementation of new technologies. The decision to purchase robotic unit would be affected by lack of efficient information and knowledge concerning the technology. The supplier may fail to clearly demonstrate the features and the importance of the unit in the set up and how to appropriately manage and run. In addition, the reaction of the clients towards the unit can affect and change the decision of the organization. The clients are the main focus of the organizations and their feelings and reaction concerning the move of an organization can affect the long run operation of the firm. Cost of the unit and the maintenance expenditure can hinder the decision. The stakeholders may hold diverse views concerning the investment and lack of understanding may greatly hinder the decision. Concern and conflict by the employees may affect the decision. The purchase of the unit would reduce the number of employees from the company resulting to increase in the level of unemployment in the region.

St and Still (2007) record that in the implementation of a new technology in an organization, the operators or the supervisors must possess the required level of skills for effective utilization and operation of the innovation. Lack of skilled personnel that would operate the unit would greatly affect the decision. The size of the organization may affect the decision.

Reaction of the clients

            Application of robots would substitute the human to use of machines to perform different surgery and operations. The clients may pose negative attitude towards the technology especially due to lack of proper information concerning the technology and how it functions. However reactions toward the technology would develop as the popularity, efficiency and information spread across the region.

Impacts of acquiring the technology on the competitiveness of the organization

Implementation of the robotic unit technology would improve the competitiveness of the organization in the market. Application of the technology would indicate that different drivers for improving the healthcare access, quality, personalization and affordability can be handled by robots (Gedeon, 2006). The implementation would improve the competitiveness of the organization by improving the procedures in medical and reduction of cost. The new technology would facilitate the medical procedures by precisely guiding diagnostic tools and equipment’s and guiding instruments for therapy and diagnosis. The technology would also result to improved quality and safety in the medical surgery. The innovation would result to enhanced effectiveness in the cost paid by the patients increasing the number of clients to organization. Implementation of technology would increase the competitiveness of the organization by improving the education and training of medical assistants who help to deliver effective services to the clients.


            Robotic unit or technology improves the accuracy and efficiency of the medical procedures reducing the rates of complications in surgeries. Robotic procedures in addition to being accurate it offer cost saving in terms of pre operations and post operations costs and reduce the length of staying in the hospitals. In implementation of the technology, the stakeholder should pay particular attention to different economy aspects that may affect the technology. The factors that the management should focus on include the cost, savings, and productivity of the unit.


Gedeon, A. (2006). Science and technology in medicine: An illustrated account based on ninety-nine landmark publications from five centuries. New York: Springer.

In Kilic, S. G., In Kose, M. F., & In Ertan, K. (2013). Robotic surgery: Practical examples in gynecology. N.p.

St, A. K., & Still, B. (2007). Handbook of research on open source software: Technological, economic, and social perspectives. Hershey, PA: Information Science Reference.

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