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Economics in Health Care

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Economics in Health Care
Michele R. Morris

HCS/

April 25, 2011
Instructor Name

History and Evolution of Health Care Economics

History and Evolution of Health Care Economics

Over the course of history in the United States, the economics of health care has changed. Economics is the science that deals with the production, distribution, and consumption of goods and services, or the material welfare of mankind (Getzen & Moore, 2007). This paper will discuss that history along with the evolution of heath care economics. This paper will also discuss the timeline of health care funding. Some factors that contributed to the evolution of health care are technology and medical advancement. If one understands the flow of funds system and the history of health care economics there would be an easier task of planning for the future. Money is the driving force when it comes to health care economics. Over the past 60 years health care funding has changed. In the past a larger number of individuals paid privately for health care. Over the years Funding began to come more from third party agencies and health insurance companies. That leaves individuals paying only a portion of the total flow of funds with private money (Getzen & Moore, 2007, p. 3, para. 1).
Flow of Funds The flow of funds is a system that is used. This flow of funds system is a system in which financial managers can determine the flow of finances through the health care system. Before the Great Depression people were known to trade physical items for health care. These items consisted of livestock, cotton, and other items that might have been worth something at that time. During this time period people were essentially paying 100 percent of medical cost. After the World Wars a new system needed to be implemented so that people could get medical care. After these hard times it was necessary for some financial aid to the people.
The Depression Around the 1930’s the Great Depression had forced changes


References: Getzen T.E., 1807-2007, (Health Care Economics), (Temple University with Bruce Allen), University of Phoenix Materials, Received 4/19/11   PBS. (2010). Health Care Crisis. Retrieved from http://www.pbs.org/healthcarecrisis/history.htm
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