ECONOMIC MEASURES AGAINST A PANDEMICS

Main Article Content

Oleksandr MELNYCHENKO

Abstract

Introduction. For the first time in many years the civilized world has faced so many restrictions on freedoms: the closure of international and domestic borders, a state of emergency, and a ban on urban movement are a non-exhaustive list of measures taken to stop the further spread of COVID-19. Without being able to predict, one should prepare, in particular, economically for such a level, scale and depth of problems, and in this article we will focus on the mechanisms that can and should be used.

Purpose. The purpose of this article is to improve the concept of resource allocation as an economic means to increase the capacity of the health care system during medical emergencies.

Results. Hospital space, staff and consumables are economic resources (including material and rehabilitation), which are directly related to the fight and overcoming of COVID-19. Capital and labor have a clear value in monetary terms: in the first case for a hospital or other health care facility, it will be represented by the value of assets (buildings, equipment, consumables, etc.), and in the second - the amount of staff salaries.

When it comes to limited resources and the transition of the hospital to one of the modes of operation of the appropriate level of capacity, should take into account not only the limited number of resources available in the hospital, but also the possibility of increasing this level at the appropriate time. It is clear that the profile and scope of activities of the health care institution does not provide for the production of consumables, which are key in the fight against diseases and treatment of patients, so their increase and increase in staff and space also requires financial resources to it is possible and necessary to solve the problem of limited resources that are directly involved in realizing the potential of hospitals.

Therefore, by increasing funding and purchasing the necessary resources in the relevant market, the problem should be solved. Moreover, in today's globalized world, it is not a problem to increase the volume of each of these hospital resources for a corresponding price, albeit increased as a result of increased demand. This can be done in a relatively short period of time. At the same time, as folk wisdom says, if the problem can be solved with money, then it is not a problem, but a cost.

Initiating the purchase of equipment or other materials will cause demand for them and, accordingly, supply in the market, provided a balanced policy, physical and organizational access to markets. Company managers, footballers are invited to work for other companies or teams for a correspondingly increased salary. Similarly, in the labor market you can find medical staff, which in times of medical surges can be hired to work in relevant hospitals. The purchase of tents or containers for the proper organization of patients' access to hospitals should not be an obstacle at all, as there are no restrictions on the import or manufacture of such goods in the country, which, in addition to increasing hospital capacity, will also provide additional employment and business. This will increase the capacity of hospitals, when even the surge will be within the capabilities of the health care system. However, it is not necessary to purchase fixed assets or hire staff now and forever to increase the capacity of the hospital at the right time. It is necessary to use economic and legal mechanisms of temporary attraction of resources: rent, leasing, fixed-term contracts, etc.

Originality. This article contributes to improve the concept of resource allocation as an economic means to increase the capacity of the health care system during medical emergencies. Initiating the purchase of equipment or other materials will cause demand for them and, accordingly, supply in the market, provided a balanced policy, physical and organizational access to markets.

Conclusion. The appropriate level of treatment during periods of increasing workload in the health care system or a particular hospital is ensured either by changing the organization of the system and the principles of use of resources such as space, staff and consumables or their redistribution, or by financial resources such resources are increased or replenished.

Article Details

Section
Статті

References

Ajao, A., Nystrom, S., Koonin, L., Patel, A., Howell, D., Baccam, P., . . . Meltzer, M. (2015). Assessing the Capacity of the US Health Care System to Use Additional Mechanical Ventilators During a Large-Scale Public Health Emergency. Disaster Medicine and Public Health Preparedness, 9(6), 634-641. https://doi.org/10.1017/dmp.2015.105

Bochulia, T. & Melnychenko, O. (2019). Accounting and analytical provision of management in the times of information thinking. European Cooperation, 1(41), 52 – 64. https://doi.org/10.32070/ec.v1i41.21

Burlaka, O., Kuzior, A., Hanych, O., Kravchenko, S., & Melnychenko, O. (2019). Implementation and legal regulation of electronic insurance in Ukraine. Journal of Legal, Ethical and Regulatory Issues, Volume 22, Special Issue 2. Retrived from: https://www.abacademies.org/articles/Implementation-and-legal-regulation-of-electronic-insurance-in-Ukraine-1544-0044-22-SI-2-356.pdf (Accessed: 12.01.2021).

Coronavirus response: Transport measures. Retrieved from: https://ec.europa.eu/transport/coronavirus-response_en (Accessed: 12.01.2021).

Dorsch, M. J., Törnblom, K. Y., & Kazemi, A. (2017). A Review of Resource Theories and Their Implications for Understanding Consumer Behavior. Journal of the Association for Consumer Research, 2(1), 5–25. https://doi.org/10.1086/688860

De Gregori, T. R. (1987). Resources Are Not; They Become: An Institutional Theory. Journal of Economic Issues, 3(21), 1241-1263. https://doi.org/10.1080/00213624.1987.11504702

Dzwigol, H. (2019a). The Concept of the System Approach of the Enterprise Restructuring Process. Virtual Economics, 2(4), 46-70. https://doi.org/10.34021/ve.2019.02.04(3)

Dzwigol, H. (2019b). Research Methods and Techniques in New Management Trends: Research Results. Virtual Economics, 2(1), 31-48. https://doi.org/10.34021/ve.2019.02.01(2)

Dzwigol, H. (2020b). Methodological and Empirical Platform of Triangulation in Strategic Management. Academy of Strategic Management Journal, 19(4), 1-8.

Dźwigoł, H. (2020c). Interim Management as a New Approach to the Company Management. Review of Business and Economics Studies, 8(1), 20-26. https://doi.org/10.26794/2308-944X-2020-8-1-20-26

Dzwigol, H., & Dzwigol-Barosz, M. (2020a). Sustainable Development of the Company on the Basis of Expert Assessment of the Investment Strategy. Academy of Strategic Management Journal, 19(5), 1-7.

Dźwigoł, H., & Dźwigoł-Barosz, M. (2020b). Determinants of the World Investment Market Development in the Context of Global Transformations. In K. S. Soliman (Ed.), Proceedings of the 36th International Business Information Management Association (IBIMA) (pp. 9109-9116). Granada, Spain: IBIMA Publishing.

Dzwigol, H., Shcherbak, S., Semikina, M., Vinichenko, O., & Vasiuta, V. (2019a). Formation of Strategic Change Management System at an Enterprise. Academy of Strategic Management Journal, 18(SI1), 1-8.

Dzwigoł, H., Dzwigoł–Barosz, M., Zhyvko, Z., Miskiewicz, R., & Pushak, H. (2019c). Evaluation of the Energy Security as a Component of National Security of the Country. Journal of Security and Sustainability Issues, 8(3), 307-317. http://doi.org/10.9770/jssi.2019.8.3(2)

Economic Resources: Definition and Significance. Retrieved from http://www.yourarticlelibrary.com/economics/economic-resources-definition-and-significance/25272 (Accessed: 12.01.2021).

Hick, J. L., Barbera, J. A., & Kelen, G. D. (2009). Refining Surge Capacity: Conventional, Contingency, and Crisis Capacity. Disaster Medicine and Public Health Preparedness, 3(S1), S59-S67. https://doi.org/10.1097/DMP.0b013e31819f1ae2

Hick, J. L., Hanfling, D., Cantrill, S. V. (2012). Allocating Scarce Resources in Disasters: Emergency Department Principles. Annals of Emergency Medicine, 3(59), 177–187. https://doi.org/10.1016/j.annemergmed.2011.06.012

Hick, J. L., DeVries, A. S., Fink-Kocken, P., Braun, J. E., Marchetti, J. (2012) Allocating resources during a crisis: you can’t always get what you want. Minn Med, 95(4), 46–50.

Institute of Medicine (US) Forum on Medical and Public Health Preparedness for Catastrophic Events. Medical Surge Capacity: Workshop Summary. Washington (DC): National Academies Press (US); 2010. The Communications Challenge: Definitions, Standards, and Metrics. Available from: https://www.ncbi.nlm.nih.gov/books/NBK32856/ (Accessed: 12.01.2021).

Ivanov, S., Dzwigol, H., & Trushkina, N. (2019). Proposals for the Formation of a Transport and Logistics Cluster as an Institution of Regional Development (on the Example of Donetsk Economic Region). Economic Herald of the Donbas, 58(4), 51-60.

Kearns, R. D., Cairns, B. A., & Cairns, C. B. (2014). Surge capacity and capability. A review of the history and where the science is today regarding surge capacity during a mass casualty disaster. Front. Public Health, 2(29). https://doi.org/10.3389/fpubh.2014.00029

Kharazishvili, Y., Kwilinski, A., Grishnova, O., & Dzwigol, H. (2020). Social Safety of Society for Developing Countries to Meet Sustainable Development Standards: Indicators, Level, Strategic Benchmarks (with Calculations Based on the Case Study of Ukraine). Sustainability, 12(21), 8953. https://doi.org/10.3390/su12218953

Kwilinski, A., Dzwigol, H., & Dementyev, V. (2019). Transnational Corporations as Entities of International Entrepreneurship. International Journal of Entrepreneurship, 23(SI4), 1-6.

Kwilinski, A., Vyshnevskyi, O., & Dzwigol, H. (2020). Digitalization of the EU Economies and People at Risk of Poverty or Social Exclusion. Journal of Risk and Financial Management, 13(7), 142. https://doi.org/10.3390/jrfm13070142

Melnychenko, O. (2021). The Energy of Finance in Refining of Medical Surge Capacity. Energies, 14, 210. https://doi.org/10.3390/en14010210

Melnychenko O., Kwiliński A. (2017). Управление энергией: анализ ретроспективы в контексте перспективы экономического развития. European Cooperation, 7(26), 66 – 80.

Melnychenko O., Hartinger R. (2017). Role of blockchain technology in accounting and auditing. European Cooperation, 9(28), 27–34.

Melnychenko, O. (2020). Is Artificial Intelligence Ready to Assess an Enterprise’s Financial Security? Journal of Risk and Financial Management, 13(9), 191. https://doi.org/10.3390/jrfm13090191

Melnychenko, O. (2019). Application of artificial intelligence in control systems of economic activity. Virtual Economics, 2(3), 30-40. https://doi.org/10.34021/ve.2019.02.03(3).

Mitchell, W. C. (1941). Conservation, Liberty, and Economics. The Foundations of Conservation Education. New York: National Wildlife Federation, p. 1.

Resource: Meaning, Concept and Its Classification. Retrieved from http://www.yourarticlelibrary.com/geography/resources/resource-meaning-concept-and-its-classification-geography/74529 (Accessed: 12.01.2021).

Shkodina, I., Melnychenko, O., & Babenko, M. (2020). Quantitative easing policy and its impact on the global economy. Financial And Credit Activity: Problems Of Theory And Practice, 2(33), 513-521. http://dx.doi.org/10.18371/fcaptp.v2i33.207223

Solow, R. M. (2008). The Economics of Resources or the Resources of Economics. Journal of Natural Resources Policy Research, 1(1), 69-82. https://doi.org/10.1080/19390450802504048

Vatamanyuk-Zelinska, U., & Melnychenko, O. (2020). The effectiveness of financial and economic regulation of land relations in the context of stimulating entrepreneurial activity in the regions of Ukraine. Problems and Perspectives in Management, 18(3), 11-27. http://dx.doi.org/10.21511/ppm.18(3).2020.02

Viola, M.G., Diamantopoulos, A. Determining the Baseline Strategy in a Cost-Effectiveness Analysis with Treatment Sequences. Appl Health Econ Health Policy, 18, 17–29 (2020). https://doi.org/10.1007/s40258-019-00514-2

Zimmermann, E. (1933). Resources of the South. The South Atlantic Quarterly, 216 p.

Zimmermann, E. (1951). World Resources and Industries. New York: Harper & Brothers, 10 p.