Health Economics

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HSA 500 Health Services Organization
Janeen Whiteside-Harris
Professor: Dr. Maryjane Granoff
October 24, 2012
United States (U.S.) Health Care System (HCS)
Requirements are to write a three to four page paper covering the following: 1. Identify and evaluate at least three forces that have affected the development of the health care system in the U.S. 2. Speculate whether or not these forces will continue to affect the health care system in the U.S. over the next decade. (Include a force that was not mentioned that you believe will impact the health care system of the nation. 3. Evaluate the importance of technology in health care.

HSA 500 Health Services Organization
Janeen Whiteside-Harris
Professor: Dr. Maryjane Granoff
October 24, 2012
United States (U.S.) Health Care System (HCS)
Identify and evaluate at least three forces that have affected the development of the health care system in the U.S.
The U.S. healthcare system has continually evolved due to the success of innovative fore-thought. These innovations have been both strategic and tactical, influenced by all segments of the health care industry. There are many key strategic and tactical innovations, I will elaborate on three forces I feel affect the development of the healthcare system in the U.S.; they are: Increasing cost of healthcare, affect of economics on the healthcare system, and labor force trends in the U.S. as it relate to healthcare. * The steadily increasing cost of healthcare in the U.S. 1. The Unites States is known as the land of plenty, but if you are a native of this great nation you might feel quite differently about that statement. Being poor here has to be much like being poor anywhere else in the world, poor is poor; what might be different is opportunity. The opportunity that we are going to discuss is that of the pursuit of receiving the best healthcare regardless of race, creed, national origin, or station in life (being with or without money).

The cost of health care in the U.S. neared 2.6 trillion dollars in 2010, this is a staggering amount of money; but what make it more astonishing is that this amount is ten times higher than the 1980’s sum of 256 billion dollars that was generated by health care system (population bulletin, 2008). The rate of funds generated by health care has slowed down in recent years, but still is expected to grow faster than the national income. Our country need to address this growing burden and not just let politician say it’s a major policy priority, really make it a priority for the overall good of our nation. Furthermore, the United States has been in a recession for most of the past decade, resulting in a high rate of unemployment and lower incomes for many Americans. These conditions have put even more attention on health spending due to its affordability. Since 2002, employer- sponsored health care coverage for employee and family premiums increased by 97%, making the pursuit of health care a burden on the workers and employers. Medicare covers disabled people as well as the elderly; while Medicaid provides medical coverage for low-income families. Medicare enrollment has grown tremendously over the years due to the aging baby boomers and Medicaid due to the recession.

  This has added considerably to government spending, straining both federal and state budgets. Health spending accounted for 17.9% of the nation’s Gross Domestic Product (GDP) in 2010 (kaiserEDU.com, Health Policy from the Henry J. Kaiser Family Foundation, Explained). * Economic affect healthcare.

2. Economics and health care is very simple to explain, especially by someone who has seen first-hand families being mentally tormented, because they could not afford dental care for their children, the check-up not covered by the company’s insurance to enable your child to be eligible to play football, or not being able to afford the...
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