Supply And Demand Dynamics For The Hospital Industry 's Products

The health care industry is a major industry with a peak in employment opportunity in most of the United States. The states of Illinois, Indiana, and Wisconsin created the largest creation of jobs for General Medical and Surgical Hospitals, with over 160,000 jobs in 2013 alone. ( brage.bibsys.no) Workers in Individual and Family Services are at the highest peak in Pennsylvania, New Jersey, Delaware, and Maryland, covering over 50,000 jobs. The healthcare industry is an oligopoly. An oligopoly is an industry structure in which market power is shared among a limited large producer. While some small producers may also function in the market, there are a few large companies that dominate. Though it’s possible that an oligopoly can be competitive

There is a move from a noncompetitive insurance environment to a competitive one because the competition was not by hospitals to provide the best and cheapest care, but rather among the insurers to get the healthiest patients. Consumer driven plans are central to the process because they are ideal for risk selecting the young and fit who have been driven to new plans. Healthy people could watch their account balances grow which leaves the truly sick behind in traditional plans. This particular type of competition is being used to attract the healthy and in turn lead to price increases because insurers have little incentive to control the prices medical providers are charged. It is the responsibility of the patients to worry about the cost and the patient does not have the same power as the insurance competitors do. According to a key South African regulator, Alex van den Heever of the Council for Medical Schemes, “Competition based on the shifting of risk

More and more people with medical insurance are relying on the health care system as new technologies and treatments become available. This leads to a grater number of claims for payment by insurance companies, the costs of which are passed back to health care consumers. The baby-boom generation is entering its peak health-care using period. Over eighty million Americans will turn 50 in the next 10 years. The cost of providing heath care for these individuals will be staggering

This paper will look at the impact of Affordable Care Act on supply and demand in healthcare. The goal is to show if there is equilibrium of supply and demand since the Affordable Care Act was enacted. This has been done by looking at a variety of articles such as The Impact of the Affordable Care Act on the Health Care Workforce. The Affordable Care Act has created provisions to address some of the supply shortages. Through the provision it will take time for the full effects to come to light. This paper will provide valuable information regarding the Affordable Care Act impact on supply and demand.

“The amount people pay for health insurance increased 30 percent from 2001 to 2005, while income for the same period of time only increased 3 percent.” (Source: Robert Wood Johnson Foundation). The rising cost of healthcare is a huge problem in America today. In this paper I will analyze the different issues and causes for the increase in cost.

There are many factors that have influenced the changes of health care economics. Money and technology has definitely been the reason for the change of health care economics over the years. Money is want makes the economy evolve. There will be advancement in technology and there needs to be people are managing these to keep up with the changes. The U.S. has definitely progressed as far as influencing factors to change in new advancement of technology and medical care. Having a good financial manager in your organization will prepare for these upcoming advancements and changes. Money drives these advancements in

On the same level from a patient’s perspective, providers are even challenged with increased costs. Even though insurance is becoming more affordable the money, unfortunately has to be recovered utilizing other

A challenge that the healthcare nation is facing is to provide the quality of care that is expected and obtain low healthcare cost. Working hand in hand with the private sector and government is in hopes of improving the quality of care that each patient deserves and maintaining the cost so that research can continue. The purpose of this paper is to look into relationships between healthcare cost and quality healthcare.

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

Another issue for fee-for-service system is that the providers set the prices for services. Patients were free to seek any type of healthcare services that they thought they required, while providers set the costs for each service that was billed to indemnity insurance companies (Shi & Singh, 2015). Insurance companies had little control on the types of services that the patient received and prices billed for each service. The fee-for-service model encourages excessive and unwarranted procedures and offers no incentives to utilize economical services (Smith, 2010). While the patients enjoy the freedom of being able to seek out their own services, over-utilization of expensive services on unnecessary and highly technical services increased healthcare costs.

Delivery of health care is under an imperfect market: Various providers exist with varying prices. Hence, the lower the price, the higher the demand and vice versa.

There is a high demand for health care services, supply, the price of health care procedures, and shortages. The price for health care services can be very high because the demand is high. There was recently a health care reform. Meaning, that health care insurance is more affordable. Giving consumers that need extensive health care services, affordable insurance will bring the demand for health care to increase. With more consumers seeking health care services we have to increase our supply of doctors, nurses, and hospital services including procedures and testing. But is that possible or even realistic? The purpose of this paper is to analyze the supply and demand of health care.

In other words, more people are receiving healthcare benefits due to the Affordable Care Act. In fact, ever since the act was passed, millions of Americans are finally able to afford health insurance, increasing the total number of physician and emergency visits for this non-profit. The increase in health insurance raises the total amount of revenue at Yale New Haven Hospital on a yearly basis. Therefore, the demand theory within this organization is constantly in full

and foreign pricing where U.S. drug prices are among the highest in the world. A key factor that prevents the insurance companies from covering the upfront cost of the expensive treatments is the high rate of policyholders switching from one plan to another due to job changes, relocation, retirement etc. Despite having the methods and financial means to provide care, each day patients fail to receive optimal care due to the current political atmosphere. Lack of health education and engagement in risk behaviors significantly increase the rate of infectious diseases that require expensive curative therapies. On the other hand, if they are left uncured it can pose a significant threat to the public health.

There is a spacious room for lemon in insurance field. The price for health insurance is not fixed, it varies based on the level of the need an applicant may require for the insurance. As in the case of elderly people over the age 65, it is well known that it is very difficult for them to get health insurance because of its high price as they certainly will need it more than other applicants. On the other hand, employees working in companies are offered health insurance as a part of the companies’ policies and regulations. This actually create more room for lemon in the insurance field and less chance for old people who need it more. This ended up with adverse selection by the insurance companies. (A.Akerlof, Aug