According to a report released by CMS the national health expenditure is expected to increase on average of 6.1% from the year 2009 to 2019 (CMS, 2011). During this same projection period spending on Medicare is expected to raise an average of 6.9%, and Medicaid 7.9% per year. In 2009 spending on hospital related services in the United States were estimated at $761 billion dollars and will average an increase of 6.1% over the next decade (CMS, 2011). Spending on physician cost and clinical services will grow by 5.4% while prescription drug cost will grow 6.3% during the projected period (CMS, 2011).…
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 providing successful health care industries. Most of the funding that comes to make these changes comes from insurance companies but it also affects patients. Patients have to pay for insurance and the money adds up. It can be very expensive to pay for health insurance as well as medical bills and prescription medication. Today in society we provide services in health care for money. Money creates revenue for the organization can pay for supplies, workers, and other things to keep the organization running. Before money was involved physicians would trade in their skills and work for supplies to help you live.…
Our Healthcare system is clearly business based according to the article “Cost Conundrum” and on the movie “Escape Fire”. In the movie it had an impacting story of an older lady who had heart problems where she went to a doctor and they were going to charge her thousands of dollars were later she went to a different doctor and they charged her a couple hundred dollars for t he same procedure. I couldn’t believe that in a different office she would get the same procedure done for a lot cheaper than in the other doctor’s office. Also, it surprised me how the medical staff are giving all these medications to our soldiers were they are clearly abusing the medication and taking much more than they should. I was really happy to see that later the soldier who was overdosing on medications decided to stop and later tried a different form of medication of acupuncture. Although overdosing on medication is a problem in our country it is not the biggest one in our healthcare. Our healthcare system is the one that is collapsing. Our healthcare system is not like it was many years ago, our healthcare system is market based and doctors don’t focus on quality care on their patients and rather view them as dollar signs. In the article “Cost Conundrum” it states that McAllen is one of the most expensive healthcare markets in the country, many are unsure why it spends more per capita but it states that because the people there are obese and have cardiovascular diseases and fall under the poverty line. In the article it states “the way to practice medicine has changed completely before it was about how to do a good job, now it’s about how much will you benefit”. I clearly agree to this statement because I have gone through this experience with my father. He was diagnosed with diabetes at a late stage in which it caused a retina detachment on his left eye. When he was diagnosed I would…
There are millions of people in the world who are in need of care and the more care people need the more equipment and treatments are needed. There is new technologies coming out every year and new treatments causing prices to go up, this is where supply and demand comes in. Health care is one of the largest items that are going to have a supply and demand because of the needs of its patients. The more that people get sick the greater the need for health care, this may not be the best thing for certain patients because with the greater demand for health care the higher the costs may go.…
Medical technology can help improve both patient and user safety, reduce medical errors when documenting patient information or using equipment, and also helping with employee job satisfaction which will in turn help the keep the staff employed at the healthcare organization. “One might not readily associate technology with work force shortage issues; however, it is an area rich with the potential for effective technological solutions.” (Larsen, Marc G. 2012) These kinds of improvements can only be achieved if a healthcare organization decides to change…
The White House. (2013). The Economic Case for Health Care Reform. Where We Are Ad Where We Are Headed. Retrieved from http://www.whitehouse.gov/administration/eop/cea/TheEconomicCaseforHealthCareReform…
There are some adjustments that need to be made in order for healthcare in this country to be more affordable and effective. One thing is to consider the time verses quality concept which is where the doctors see more given patients within a day and save time…
What is Moral Hazard and discuss the consequences and why they might not be desirable. Also, the deductible feature of an insurance policy can affect the impact of Moral Hazard. How so?…
Medicare is a government health insurance program. Medicare provides health care assistance for people 65 or older. Medicare provides insurance for people younger than 65 who have chronic illnesses, disabilities, or permanent kidney failure. Medicare will not cover all medical expenses, but it gives basic protection against some health care cost. Medicare beneficiaries are enrolled and giving specific information about insurance by the Social Security office. Medicare is divided into two parts. Medicare Part A which covers inpatient hospital. Medicare Part B which covers some doctors' bills and few health…
From the analysis of the above information, overload is the larger problem at our facility. The facility acutely experiences adoption challenges and must actively work within a limited environment to overcome them. Finding the right program, exploring how to incorporate it, updating and training the staff on how to use it. Additionally, our facility is more likely to bear adverse outcomes of a dynamic, a volatile health IT field, especially since we face significant financial risk if we take on debt to invest in health technology and fail to meet meaningful use. It is imperative to consider the availability of financial, operational, and institutional resources within our small environment, all of which ultimately affect the success of…
Without a doubt healthcare costs are rising out of control. Not one of us are happy with the increases, but we have to understand what the reasons are for the increases in healthcare. American people look at their insurance bills, co-pays and drug costs, and do not understand why they continue to increase. The insured should consider all reasons behind the increase before getting upset. In 2004, employer health care premiums increased over 11 percent, four times more than the rate of inflation. In 2003, premiums rose 10.1 percent and in 1002 they rose 15 percent. Employee spending for coverage increased 126 percent between 2000 and 2004. These increases were lower than expected. The site to look up information on the cost of health care coverage and the breakdown on the cost is (National Coalition on Health Care, Facts on health care costs). Premiums have risen five times faster than workers’ wages, if medical spending continues to rise by just two percent more than a person’s personal income, by 2040 Medicare and Medicaid will rise 8.4 percent of gross domestic product this year’s 15.6 percent by 2040, according to Congressional Budget Office projections. If all government programs stay at the same size relative to the economy, the budget will grow from 19.9 percent of GDP in 2003 to 27.1 percent by 2040, (http://www.cato.org/sites/cato.org/files/pubs/pdf/tbb-0306-15.pdf). There are huge impacts of the rising costs of healthcare. Many people cannot afford health insurance today and struggle to pay for their medical needs. Of the families that do have health coverage, 50 percent are concerned about having to pay more for the coverage in the future, while 42 percent fear they will not be able to afford coverage at all if the rate increase keep s going the way it is. This leads to believe one of the reasons for health care cost increases: cost sharing or cost shifting. When an individual or a family does not have insurance, and cannot…
Expenditures has an impact on the health care industry, looking at this article “Health expenditures increased from 12.2 percent of the gross domestic product (GDP) to 13.5 percent in l997 (Levit et al. 1998), and they are expected to reach 16.6 percent of GDP in the year 2007 (Smith et al. 1998). The devotion of a large percentage of the total GDP to health costs is a concern because such dollars are then not available…
The fee- for- services system was used in the U.S. until the twentieth century and, than advance payment was put into place to finance and, manage health care. The reasons for all the rising exposure to health care costs comes from hospitals that choose to become more advanced, have more new technologies which, increased costs onto the patients with higher premiums, patients paying more for services. Hospitals started using new technologies such as, new imaging devices, diagnostic machines, electronic patient filing so, this helped to transform hospitals in keeping up with the new trends, demands of industries and, demands of patients wanting more from hospitals and, getting services they needed yet, it increased costs as, the machines are costly and, hospitals have to have qualified staff to…
One of the biggest problems small employers face today is the steadily rising costs of health coverage for its employees. This paper covers how health care premiums have risen in double digits for the past five consecutive years, how many small businesses are forced to drop health care coverage for their employees because of the out of control costs, and what small businesses are doing to control the costs and still offer health care coverage to their employees.…
Here in the United States, new medical technology is responsible for half of the growth in health care costs. As new and more effective medical procedures, drugs, and technologies are introduced into the market, the demand grows and more money is invested in them. The money is invested by the government, manufacturers, private investors, and in a minor scale by the health insurers. All the health care benefits and investments are the motivation for technological research and development to continue and accelerate in order to generate more profit (Fuchs & Garber:…