So far, it has been proven impossible unless the circumstances that prevent poor and uninsured people from getting medical care are addressed concurrently. Evidence of rising health care expenditures is nationwide. Hogan and colleagues estimate that private expenditures increased by 6.6 percent per insured person in 1999, as compared with increases of 5.1 percent in 1998 and 3.1 percent in 1997 (Hogan C, 2000). Currently the U.S. spends 16 percent of gross domestic product on health care, compared with 8 to 10 percent in most major industrialized nations. The Centers for Medicare and Medicaid Services which is also known as CMS, guesses that growth in health spending will continue to outpace GDP over the next 10 years.
Judging on the past of health care and the major developments that have been made in the last 150 years, the economics of it all have also changed dramatically. The demand for health care is nowhere near meeting the supply, struggling with retaining employees and offering efficient care all over the world. The health care economy is the most grossing industry in the United States, with a gross domestic product of 3.5 trillion dollars. With results like that, elasticity in health care seems somewhat unheard of. The need for health care is dire, yet the prices just increase.
The current health care system in the United States is a structure that is intertwined with both a private and public sector. The system that is set up in the United States is the most expensive health care system in the world (Institute of Medicine, 2010). In the United States people spend more money on medical care than anywhere in the world. In addition, people are more concerned with the rising costs of health care than collective access for the American people (Shi and Singh, 2008). I think that this is the time for the government to step in and make some changes in the health care system.
New drugs, treatment protocols and technologies have been invented to treat the diseases easily and efficiently. But there are many factors which make those health care systems fail to bring the intended outcomes compare to the cost invested. The demand of the population is increasing as the size of population around the world is increasing and the resources are scarce which brings the need of efficient management of the resource allocation and utilisation. When health organisation fails to efficiently manage and utilisation of those scares resources it results in very high cost of health services or poor quality of services or deficiency of resources etc. The causes of those economic failures are discussed in the report and the possible prevention strategies too.
In order to provide free education for medical students, malpractice insurance for physicians, and free health care for everyone, taxes need to be raised. Ultimately, all Americans can have health care if we pay higher taxes instead of paying the insurance companies. Bibliography 1. Karen Davis, Cathy Schoen, & Kristof Stremikis, Mirror, Mirror on the Wall How the Performance of the U.S. Health Care System Compares Internationally 2010, http://www.commonwealthfund.org/~/media/Files/Publications/Fund%20Report/2010/Jun/1400_Davis_Mirror_Mirror_on_the_wall_2010.pdf. 2.
Economists estimate about 2 trillion will be spent on medical care in 2007. That is about $6,830 per person, which amounts to 16 percent of the nation’s gross domestic product. Clemmitt, Marcia (2006, April 7) Rising health cost (vol.16, Issue 13). Recent reports from (Clemmit,2006) recognize the fact that rising health care costs have made health insurance too expensive for many employers to offer and health care itself too costly for tens of millions of Americans.
Preventable medical error is defined as failure in the treatment by a healthcare provider. Medical error could be obvious or not harmful to the patient. Medical error could be human error or equipment malfunction. These errors include: wrong site surgery, incorrect laboratory result, wrong prescription, lack of information, and misdiagnosis. These can occur anywhere within the healthcare system such as outpatient and inpatient settings, provider's offices, long term care, pharmacies, and any other areas that medicine is a practiced.
The Rise In Health Care Spending And What To Do About It Abstract and Introduction Abstract Reforms for slowing the growth in health care spending and increasing the value of care have largely focused on insurance-based solutions. Consumer-driven health care represents the most recent example of this approach. However, much of the growth in health care spending over the past twenty years is linked to modifiable population risk factors such as obesity and stress. Rising disease prevalence and new medical treatments account for nearly two-thirds of the rise in spending. To be effective, reforms should focus on health promotion, public health interventions, and the cost-effective use of medical care.
Compared with other developed nations, America lags behind in the provision of quality and affordable healthcare to its citizens. This research paper will discuss some of the challenges facing the industry and solutions that can be applied to rectify them. Rising costs of medical care Healthcare is the leading socio-economic challenge affecting Americans. The ever increasing cost of medical care and insurance in affecting the American way of life in many aspects. Having problems paying for primary healthcare is no longer the preserve of the poor or the unemployed, but is affecting even those with medical insurance (Shea, 2005).
Vicki Parker Professor Oz Aydemir ECO 110 8 May 2014 The Impact of Health Insurance Health care is one of the fastest growing sectors of the economy. In the past ten years health insurance premiums have doubled. The health care market cannot be analyzed by using the normal supply-and-demand curve, due to informational problems, market power by suppliers, and government intervention. Balancing the cost of care with the quality of care is a major issue, because the market structure of the health insurance industry impacts rising health care costs and limits access to affordable health insurance and health care. Health care is a unique product compared to other goods and services, as it is not easily defined.