Scarcity in healthcare, where resources are limited but needs are vast, poses challenges in allocating funds effectively, as seen in the Medicaid program. To address this, prioritizing essential services like life-saving surgeries and critical treatments, considering both demand and cost, is key. Ethical principles such as favoring the sickest and maximizing overall benefits guide the allocation process to ensure fairness and social usefulness. By balancing the number of patients in need, costs, and ethical considerations, the Virginia State Committee can make informed decisions to optimize healthcare resource distribution within the Medicaid program