Economic Terms and Health Care History Essay

980 Words4 Pages
Economic Terms and Health Care History Tanella Valenzuela HCS/440 May 6, 2013 Lori Geddes Economic Terms and Health Care History As individuals we have unlimited wants and needs. The reality is that our wants and needs often go unmet. Our available resources have limits that cannot be exceeded usually because of the cost. Due to the fact that our resources are limited we must choose which goods and services to buy and which ones to forgo. This includes health care for ourselves and our families. Although the phrase wasn’t coined until 1935 the practice of economics had been in place for many years prior to that. It is the science of studying goods and services including the production, distribution, and consumption of those goods and services. The economic evolution of health care began in the late 1800s when private fraternities provided care in private lodges to its members for a dollar or two a year. In the early 1900s surgeries became more common and doctors were no longer expected to provide their services for free. Railroads were one of the first industries to develop employee medical programs. By 1910 hospitals had become scientific institutions and the American Association for Labor Legislation (AALL) had its first national conference on “social insurance” and the idea of health insurance was gaining support. In the 1920s the emphasis was placed on the cost of medical care instead of the wages lost because of an illness. The cost of medical care was high for the middle class. Physician’s wages were high and rural health care facilities were inadequate. The demand for health care was growing and the supply was not keeping pace. During the depression in the 1930s Blue Cross began offering private coverage for hospital care. In the 1940s wage controls were placed on workers so in an effort to entice new employees companies began to offer
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