Economic Terms and Health Care History
The American Medical Association (AMA) was founded when healthcare was still getting started with doctors and hospitals (American Medical Association, 2011). During the beginning stages doctors would see patients using a bartering system. Doctors would make house calls and patients would pay with goods such as, food, fuel, cooked meals, animals, or anything else that the doctor could be in need of. Supply and demand, the doctor had something the patient needed and in return the patient supplied the doctor with something that he needed. Between 1901 and 1940 healthcare and medication improved greatly. Hospitals became very important to healthcare. President Truman proposed a national healthcare plan, but it was shot out of the water by both the AMA and Congress (American Medical Association, 2011). In the 30’s the Social Security Act was passed. They omitted health insurance. Blue Cross, Blue Shield started offering private insurance for hospitals in dozens of states. In the past fifty years, health care costs have continued to rise to the point that some low-income families and the elderly are unable to get medical treatment. Decentralization of the hospital care system has prompted private companies to enter the health care industry. The 21st Century ushered in the biggest "can of worms" our health care system had ever seen! As time has gone on the economics of health care have changed just as much. The supply and demand of health care and the products that are used in today economics the demand for health care is great. More people are becoming sick and need the treatment from the hospitals and doctors. Health care is accounts for about one-sixth of the entire economy, which is more than any other industry. In 2009 the health care total spending was around $2.5 trillion, with the most of that gross domestic product being about 18% - a measure of the value of all goods and services produced in...
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