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…
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