Economic Terms and Health Care History Essay

1014 WordsOct 15, 20125 Pages
Economic Terms and Health Care History Yolanda O’Shea University of Phoenix Economics: The Financing of Health Care HCS/440 Michele Burka October 07, 2012 Economic Terms and Health Care History Over the course of history in the United States, health care economics have gone through drastic changes. With all of the changes health care organizations have endured, adjusting their financial strategies in addition to their organizational strategies has been one of the most complicated to overcome. The economy has played a vital role in these changes along with the demands they are faced with. Some of the changes health care organizations are enduring are due to advancements in medicine such as pharmaceutical and diagnostic procedures. Over the years there have also been changes in insurance payments. It used to be that persons with health care coverage did not worry about their health care costs being covered and paid for over the years. Due to the changes in the payment system more people with health care coverage have to pay out of pocket for part of or all of certain procedures, medications, and doctor visits. The following will focus on the key terms such as supply and demand, microeconomics, macroeconomics, elasticity, inelasticity, and gross domestic product. Elaborating and summarizing these key terms will provide the reader with knowledge about economics in the health care history. According to Encyclopedia.com (2001), The American Medical Association was founded by a group of doctors in 1847 who were affiliated with various local and state medical associations. During this time hospitals and doctors began to emerge and doctors made house calls. During these early years of health care the majority of people paid for medical services with private funds; today we have insurance companies who cover the majority of the payment, with patients

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