Healthcare Cost In Health Care
Health Care Cost
There are many reasons to why the costs in health care continue to increase. This cost increased started in the early 1990’s, health care expenditure increasing at a faster rate than the inflation, gross domestic product (GDP), or the population. In 2014, national health expenditures reach $5.4 trillion, or $18,709 per person. Some of the issues that contribute to expenditure increase were changes in population demographics, supply and demand; cost inflation, advances in new technology, and resources utilization. According to The Effect of Health Care Cost Growth on the U.S. Economy, (2014) the United States spends more on health care …show more content…
services than any other country, exceeding $2.6 trillion, or about 18 percent of gross domestic product. As a share of GDP, health spending has increased 18.3 percent. Medical expenditures exceeded the nation’s economy and everyone was affected by these issues in health care. New technology was purchased which led to more spending in health care organizations and this will continue to increase in the future. According to Control Health Care Costs, Workplace health programs can impact health care costs: (2013) the gap between the growth in health care expenditures has increased to 9.3 percent and overall economic growth and population demographics to 3.6 percent, which means a larger share of more resources are being devoted to health care relative to other goods, will impact the economy both in the public and private sectors. Ten years ago, the US healthcare system was concerned, broken and that hasn’t changed much with the current health care market. Fixes promised by government intervention and managed care programs have not materialized. Insurance premiums continue to increase. According to Containing the Cost of Health Care (2013) nearly 45 million Americans are uninsured. Increasing concerns that this will only continue over the next decade, these problems will only get worse as health care organizations, physicians, and patients face new challenges. The use of new technology will only increase efficiency, but the cost will only increase with little profitability from treatments received. Physicians will get better results from newer technology, which will lengthen the patients’ lives and add to the growth of population demographics and inflation of people requiring access to health care. Baby boomers are now older adding to the growth of population that will require access to quality health care which will only add to increases in health care cost. As health care cost increase, the impact on the employer also increases, like providing affordable insurance to their employees. Currently, many employers are eliminating health care benefits entirely, which will cause the number of uninsured employee to grow. Providers can now refuse uninsured patients or insurances like Medicare. Providers that do refuse to accept Medicare patients, have done so because of having referral trouble, hassles or threats from Medicare carries, and increasing fear of government retaliation, investigation or prosecution. Medicare patients receive lower priority appointments or restricted services such as surgery. The current health care system represents both public-private mixed system that is about to change to a government system known as Affordable Care Act.
By using the Affordable Care Act, Government, State, and regional agencies would have to use quality programs and cost data to produce future health care plans for the changes in population demographics, supply and demand; cost inflation, advances in new technology, and resources utilization. Physicians then could practice throughout the different health care plans and the providers of these plans would compete on quality and cost. According to National Coalition on Health Care, The Impact of Rising Health Care Costs on the Economy: Effects on Business Operations (2009) guidelines would rely on public input and the Healthcare Research and Quality agency, would be based on cost-effectiveness and other criteria. This would allow health care coverage to the whole population either by the basic plan or by paying extra for supplemental coverage. Since, health care costs and quality are impacted by many issues, like genetic predisposition, social circumstances, behavioral patterns, health care, and environmental exposures. Patient care coordination between different markets participants will continue to be a challenge to the health care organization. Current health care providers receive very small financial incentives in areas of improving patients health, providing top quality care for practices, improving the organization safety, minimizing medication errors, sharing transparent quality and price information, changing towards higher-quality for the organization, decreasing costs for patient care, educating patients on healthy after leaving the physicians care, sharing with other providers, reducing overall health care expenditures or creating a competitive health care market. There are many approaches that an organization can use to reduce health care system expenditures, one is pay less for care and another is
the use fewer services, but will this improve the future process of our health care with regard to quality. It’s been research that cost-effective reforms may not reduce spending, as a matter of fact reforms will most likely increase spending and value with management programs for quality. In conclusion health care is in the process of reforming and organizations required to implement performance and quality improvement tools in regards to the health care. The main purpose of health care is to provide all resources available in medicine at the highest quality to the growing patient population. Organizations must work to set standards and measures for health care quality in the Government health systems for the future. According to Essentials of the U.S. Health Care System / Edition 3, (2013) organizations must implement changes of quality, have a means to measure quality, and then promote the regular practice of measuring that quality, record quality as to demonstrate that health interventions are effective. Health care organizations need to create health care quality indicators systems that will allow patients access and a way to attain medical records. Organizations must implement standard system for reporting, measuring quality, and the development of a patient domain tool kits used by providers, administrators, and staffing groups that want to participate in reviewing and improving quality which is vital in the reforming process. As the health care system moves forward the process must include quality, quality measurements, and the ability to managed health care costs which is extremely important to the success of any health care organization and vital to our future so that the growing patient population has the necessary tools in place if health care is to be affective of all it services.
References:
Essentials Of The U.S. Health Care System / Edition 3, (2013) by Leiyu Shi,Douglas A. Singh Sudbury, MA: Jones and Bartlett Learning. ISBN-13: 9781449683740
National Coalition on Health Care (NCHC). The Impact of Rising Health Care Costs on the Economy: Effects on Business Operations. National Coalition on Health Care: Washington D.C., 2009.
Containing the cost of health care. Wroe,T.,The Boston Globe, March 16, 2007.
Control Health Care Costs, Workplace health programs can impact health care costs: 2013 http://www.cdc.gov/workplacehealthpromotion/businesscase/benefits/costs.html
There are many reasons to why the costs in health care continue to increase. This cost increased started in the early 1990’s, health care expenditure increasing at a faster rate than the inflation, gross domestic product (GDP), or the population. In 2014, national health expenditures reach $5.4 trillion, or $18,709 per person. Some of the issues that contribute to expenditure increase were changes in population demographics, supply and demand; cost inflation, advances in new technology, and resources utilization. According to The Effect of Health Care Cost Growth on the U.S. Economy, (2014) the United States spends more on health care …show more content…
services than any other country, exceeding $2.6 trillion, or about 18 percent of gross domestic product. As a share of GDP, health spending has increased 18.3 percent. Medical expenditures exceeded the nation’s economy and everyone was affected by these issues in health care. New technology was purchased which led to more spending in health care organizations and this will continue to increase in the future. According to Control Health Care Costs, Workplace health programs can impact health care costs: (2013) the gap between the growth in health care expenditures has increased to 9.3 percent and overall economic growth and population demographics to 3.6 percent, which means a larger share of more resources are being devoted to health care relative to other goods, will impact the economy both in the public and private sectors. Ten years ago, the US healthcare system was concerned, broken and that hasn’t changed much with the current health care market. Fixes promised by government intervention and managed care programs have not materialized. Insurance premiums continue to increase. According to Containing the Cost of Health Care (2013) nearly 45 million Americans are uninsured. Increasing concerns that this will only continue over the next decade, these problems will only get worse as health care organizations, physicians, and patients face new challenges. The use of new technology will only increase efficiency, but the cost will only increase with little profitability from treatments received. Physicians will get better results from newer technology, which will lengthen the patients’ lives and add to the growth of population demographics and inflation of people requiring access to health care. Baby boomers are now older adding to the growth of population that will require access to quality health care which will only add to increases in health care cost. As health care cost increase, the impact on the employer also increases, like providing affordable insurance to their employees. Currently, many employers are eliminating health care benefits entirely, which will cause the number of uninsured employee to grow. Providers can now refuse uninsured patients or insurances like Medicare. Providers that do refuse to accept Medicare patients, have done so because of having referral trouble, hassles or threats from Medicare carries, and increasing fear of government retaliation, investigation or prosecution. Medicare patients receive lower priority appointments or restricted services such as surgery. The current health care system represents both public-private mixed system that is about to change to a government system known as Affordable Care Act.
By using the Affordable Care Act, Government, State, and regional agencies would have to use quality programs and cost data to produce future health care plans for the changes in population demographics, supply and demand; cost inflation, advances in new technology, and resources utilization. Physicians then could practice throughout the different health care plans and the providers of these plans would compete on quality and cost. According to National Coalition on Health Care, The Impact of Rising Health Care Costs on the Economy: Effects on Business Operations (2009) guidelines would rely on public input and the Healthcare Research and Quality agency, would be based on cost-effectiveness and other criteria. This would allow health care coverage to the whole population either by the basic plan or by paying extra for supplemental coverage. Since, health care costs and quality are impacted by many issues, like genetic predisposition, social circumstances, behavioral patterns, health care, and environmental exposures. Patient care coordination between different markets participants will continue to be a challenge to the health care organization. Current health care providers receive very small financial incentives in areas of improving patients health, providing top quality care for practices, improving the organization safety, minimizing medication errors, sharing transparent quality and price information, changing towards higher-quality for the organization, decreasing costs for patient care, educating patients on healthy after leaving the physicians care, sharing with other providers, reducing overall health care expenditures or creating a competitive health care market. There are many approaches that an organization can use to reduce health care system expenditures, one is pay less for care and another is
the use fewer services, but will this improve the future process of our health care with regard to quality. It’s been research that cost-effective reforms may not reduce spending, as a matter of fact reforms will most likely increase spending and value with management programs for quality. In conclusion health care is in the process of reforming and organizations required to implement performance and quality improvement tools in regards to the health care. The main purpose of health care is to provide all resources available in medicine at the highest quality to the growing patient population. Organizations must work to set standards and measures for health care quality in the Government health systems for the future. According to Essentials of the U.S. Health Care System / Edition 3, (2013) organizations must implement changes of quality, have a means to measure quality, and then promote the regular practice of measuring that quality, record quality as to demonstrate that health interventions are effective. Health care organizations need to create health care quality indicators systems that will allow patients access and a way to attain medical records. Organizations must implement standard system for reporting, measuring quality, and the development of a patient domain tool kits used by providers, administrators, and staffing groups that want to participate in reviewing and improving quality which is vital in the reforming process. As the health care system moves forward the process must include quality, quality measurements, and the ability to managed health care costs which is extremely important to the success of any health care organization and vital to our future so that the growing patient population has the necessary tools in place if health care is to be affective of all it services.
References:
Essentials Of The U.S. Health Care System / Edition 3, (2013) by Leiyu Shi,Douglas A. Singh Sudbury, MA: Jones and Bartlett Learning. ISBN-13: 9781449683740
National Coalition on Health Care (NCHC). The Impact of Rising Health Care Costs on the Economy: Effects on Business Operations. National Coalition on Health Care: Washington D.C., 2009.
Containing the cost of health care. Wroe,T.,The Boston Globe, March 16, 2007.
Control Health Care Costs, Workplace health programs can impact health care costs: 2013 http://www.cdc.gov/workplacehealthpromotion/businesscase/benefits/costs.html