History of Healthcare and Economics
This paper will discuss the history and evolution of healthcare economics and healthcare funding timelines. In the 21st Century healthcare has proven to be one the largest industries world. The healthcare industry has changed dramatically in the last hundred years. As changes and progression are examined, it becomes clearer that healthcare and the economy it has created, is an important part of American life. The way the funds flow in the healthcare system allows financial managers to track the money through the health care system. The initial flow of funds has drastically changed throughout the years. The economics of healthcare, “the study of how scarce resources are allocated among alternative uses for the care of sickness and the promotion, maintenance and improvement of health, including the study of how healthcare and health-related services, their costs and benefits, and health itself are distributed among individuals and groups in society”, according to The journal of Mental Health Policy and Economy (2006).
There are records as early as the turn of twentieth century that show that healthcare providers charged for services including surgeries such as tumor removal, appendectomies and gynecological operations. Services may have been exchanged for items such as livestock, food items, or cotton. The patient or his or her family may have exchanged services for patient care. No form of health care insurance was available; prices were not set by any organization or person. Physicians of the early twentieth century were tradesmen and essentially businessman. Patients paid the full price for the medical services offered by the physician.
According to PBS (n.d.), in the 1910’s some reformers argue that there should be some sort of health insurance. Although the idea seemed to have some support, many physicians and other interest groups did not approve. War World One took...