The United States healthcare industry is facing some serious long-term issues. The number of uninsured people is in millions.
When contemplating health care policy changes, several economic issues in health care must be considered. These include the financial issues affecting the health sector and have an impact on health policies. Policy makers face unending challenges due to the health sector revenues that are always rising. Another challenge is decreased funding and failure of the health insurance services.
One of the biggest challenges fueling the primary care shortage is the increase in demand mainly due to the population growth, ever increasing aging population and the full implementation of the Affordable Care Act. According to the data released by the economic modeling and forecasting firm, the estimated shortfall of primary care
Impact to Healthcare organizations - These increases in cost raise questions of health care expenses at the hospital level. As higher profits are sought, the cost will become unstable for all, thus causing many to postpone going to the doctor. However, there are many complicated problems associated with our healthcare system. We will focus on main issues that can correct many related problems within the current structure. More importantly, we need to find ways to ensure all Americans have access to health care; and we need to hone in on how we can get the best value for the $2 trillion dollars we spend annually on healthcare.
The main economic challenge for the healthcare system in the United State will be the rising expenses associated with Medicare and Medicaid. The Governments share of healthcare spending is predicted to rise to 31 percent by the year 2020 (Keehan, Sisko, Truffer, Poisal, Cuckler, Madison, Lizonitz, and Smith, 2011). This may jeopardize the economic stability and financial security of the nation.
There will be an increase in budget deficit in the short-term due and due to the increased demand for primary care visits, we might experience a shortage 12,500-31,000 physicians by 2025
The health care system is one of the largest industries in the nation. It employs nearly twelve and a half million people. Even though this many people are employed by health care systems, there is little to no competition between the many different systems. This results in the cost being whatever the system wants. People who are ill or
The cost of healthcare has and will continue to rise in the United States. Some factors that contribute to those hikes are due to the consumer demanding more complex services from health care providers. Things such as new technology, equipment, research and testing procedures, along with pharmacy, and the number of uninsured are all dynamics of the increased cost in health care. The U.S. health care system relies heavily on third-party payers; these payers include commercial insurers and the Federal and state governments. According to the Centers for Medicare and Medicaid Services, or CMS, the National Health Expenditure grew 3.6% to $2.9 trillion in 2013, or $9,255 per person, and accounted for 17.4% of Gross Domestic Product (GDP). Id.
Overall, economic factors will always be unpredictable. Within the healthcare arena, today’s political aspects have directly impacted current and future economic variables. Obamacare places restrictions on insurance spikes without approved justification. The regulatory measures will keep citizens with medical coverage for longer timeframes. Affordability will be the
Demand is simply defined as goods and services that people are willing and have the ability to buy during a certain time at various prices. Demand in this study will be the request of the patient for medical services. The physicians demand estimates are focused on the recent utilization of healthcare and the delivery patterns. A current pattern of the utilization of physician services is observed as the level of services for what the U.S is willing and able to pay. The demand determinants are based on future demand trends in one of the
It takes a long time to increase the supply of health care professionals. Health care costs were soon rising rapidly. As a result, health care expenditures as a percent of GDP increased from 5 percent to 16 percent (Finkelstein, 2005)
Healthcare in America is a very complex system. It is very different from what it used to be. It is moving from what was considered an indemnity type of care plan into a more managed care plan. There are a lot of factors that has influenced the fast growing system. Factors that are considered a contributing to this is the growth in the US population, people are living longer than before. An increase in technology, easier access to information. There is an alarming growth rate in the allied healthcare professionals. The cost and dependence on drugs and the pharmaceutical cost has increased. The rising cost of individual and family healthcare insurance. Because of the rising cost of malpractice insurance, case settlement and jury awards.
While the effects of political and government interferes with the fluency of our health care system. What is the effect on the health care industry? In the past my experience is the natural flow of most hospitals is a peak in the summer, which is due to the ability of people having time off and kids being out of school. Then the spike in the winter, those last months of the year, where Americans have paid their deductibles allowing for them to use the insurance they pay for. It would not be a far stretch to say that if doctors are being paid less, and have fewer patients to consult, that hospitals and clinics are
(as cited by Yee, Boukus, Cross, & Samuel, 2013). Poghosyan, Lucero, Rauch, and Berkowitz (2012) reported that the U.S. will be deficient by more than forty-five thousand primary healthcare physicians by the year 2020 and that the affordable care act (ACA) health care reform will increase the demand once thirty million residents acquire coverage.
The healthcare system plays a key role in the economic stability of our country, as every year trillions are spent in attempt to combat disease and health issues that plaque humanity. As it makes up a significant amount of the expenditures in the economy, so the costs associated with health care of those in pain from illness and injury, including lost productivity, increased need of assistance in living and also the cost of death in some cases, is important to the economic stability and over all standard of living in our country. The key to economic prosperity is balancing the need for care with the costs of illness to keep as many people healthy and well without breaking the bank of collective society. The costs of healthcare have been increasingly problematic in recent years with so many issues surrounding the current system. With the “total health care spending in the United States expected to reach $4.8 trillion in 2021, up from $2.6 trillion in 2010 and $75 billion in 1970, meaning that health care spending will account for nearly 20 percent of gross domestic product (GDP), or one-fifth of the U.S. economy, by 2021” (Aetna). With this in mind it is apparent that as we look at the trillion-dollar industry of the medical community it seems that it needs to be a major focus of our nation as a whole and with the many issues come many creative solutions. First let us analyze the reasons behind the current cost and the major problems facing this industry and than discus what