History and Evolution of Health Care Economics Essay

873 Words4 Pages
History and Evolution of Health Care Economics
Lauren Michaud
Eric Oestmann
August 12,2012

History and Evolution of Health Care Economics

Healthcare economics has drastically changed over the years. It makes up for one sixth of American budget (Johnson, 2009). Health care economics has drastically changed partly due to new advances in technology over the years. Money is the factor of health care economics. Money drives economics and makes up health care and how far it can go. Economics will continue to change and financial advisors who have more education on health care economic advances will be beneficial to keep with changes in economics. Economics focuses on market. Market is like the buyer buys a product or
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One particular factor for the drastically changing health care economics is the fact that as wealthier people became, the more willing they were to pay for goods and services. Even now, health care is most often on people’s list after they buy food for their families and essentials for their home. With all the new advances in technology it has created a change in the supply and demand of health care economics. People in the 1900s were not as eager to consult with getting health care services as they are in today’s time. Medical services have advanced with medications, surgeries, exams, and patient care. Shifting the financial burden also makes medical care more desirable to individuals. Insurance companies paying for all or most of medical costs give people more incentive to seek treatment or get regular visits by the doctor. The value of health care is also the change that has come to health care economics. People feel their health is priceless and valuable. They are willing to pay to make sure they are healthy and live a long life. Although the feeling has changed about health care and people have more money to spend, health care has made dramatic changes in their costs as well. These changing costs have made a change in health care economics as well. Debt in the US now is mostly credited to health care bills that Americans rack up. People are willing to spend as much as money as possible to pay for
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