Economic Term and Healthcare History Essay
Economic Term and Healthcare History
During history, health care economics has changed considerably. The main reason that stimulus change in health care economic are technology and medical care, however a lot has to do with evolutionary changes that the U.S. endured from the beginning. It is very essential to comprehend health care cash flow system and economic history. Administrators use this data to help organize the future of the corporation. In this paper, I plan to use the terms to elaborate on the history and evolution of health care economics and the timeline of finance. Before the year of 1990, there was not a significant health care in America. American medical association was just starting, individual were using home remedy to treat illnesses, physician was making house call and trade service for good, clinic were just getting started, and there were no such thing as health insurance. However, among the age of 1901 and 1940 health care and treatment made some significant change. Clinic became more necessary Antibiotics were found, improvements were made in cleanliness, and individuals came up with ideas for employment benefit. Also, individuals came up with ideas for health insurance. In the year of 1960 social security has been carried out, Medicare & Medicaid contracted into law, and Health Insurance Company were coming up all over (PBS, 1960). In the year of 1970, HMO came in effect, and the cost of health care started going out of control and increasing. Since we place great value on health, health care end up costing a lot. Health is so important to us that it go beyond the staff we have. The number of year’s specialist applies in training the more money government uses on public health.
Also, health insurance plans provide by establishment are result as the significance society put on health care. Most important, the fact that what physician provide is important to us, we are willing to spend a lot on their training. Health care cost continues to increase over the past 50 years. This causes a problem for the elderly and low income individual. For example, elderly and low income people relatives are not able to get health treatment. During the last 10 years, government have pushed for a national health care system. On March 23, 2010 the Affordable Care Act become enact (HHS, 2010). This is to modernize the health care business, making sure individuals are able to get health insurance and service, reduce insurance scam, and reduce the cost of health care. In the year of 2014, this is thought to be complete. Economics, microeconomics (particular aspect economic related to firm), macroeconomics (general aspect economic related to firm), Supply, demand, Inelasticity, elasticity, and gross domestic product (total market value). When concerning with Economics, it is good to explore and test ways to organize and finance the system in order to improve patient care. At its most basic level, health care is a handful of financial transactions, in which patients are obtaining insurance, physicians and hospitals provide services, pharmacies provide medications, and insurance companies pay for those goods and services. So to understand health economics, you must follow the money. When tracing the flow of funds through the health care system, it’s important to be aware that the money trail is constantly shifting, changing direction and size.
Most important, the goal is to improve the delivery of health services, fund innovative and cost-effective medical procedures, cut the costs of health insurance, improve the nation’s health through prevention and better nutrition, and eliminate graft and corruption in the health care industry while raising it to a level that’s steady with the rest of the world. When concerning with supply and demand, competitive markets use prices to allocate goods and services to customers who want them the most (in monetary terms) and to pay suppliers for producing those goods and services (Thomas E. Getzen, 2007). Most real markets and virtually all medical markets depart to some degree from the model of perfect competition. Nevertheless, it’s a useful starting point for evaluating the economic forces that shape human transactions, even when time, pain, risk, and tradition cause substantial deviations from the simple model. The demand curve has been discussed at length. But what about supply? Again, it’s vital to note that the economic concept of supply is always a supply curve. A supply curve is a graph (or schedule) that shows the total amount of a good that sellers wish to sell at each price. This curve emphasizes change, allowing us to focus on a range of replies indicating how firms will vary the amount supplied as the price increases or decreases. Just the demand curve the marginal benefit curve showing how people the market willing pay for more unit good perfect competition the supply curve marginal cost curve showing how much paid induce the market provide more unit. Firms facing inelastic demand see that the total revenue goes down when they sell more units. Firms facing elastic demand find that profits increase when prices are reduced to sell more units. Firms facing unit elasticity see that total revenues remain unmoved.
Most medical care is relatively inelastic. Pain, critical needs, fear of risk, and insurance tend to decrease the role of price in patient decision making. Note what happens to a firm that sells more of an inelastic good: Because increasing the quantity sold by 2 percent requires a substantial decline in value, perhaps 10 percent, the firm loses money. Most hospitals face very inelastic demand, especially for emergency services, yet they charge less than profit-maximizing prices. Why don’t they charge more if doing so would increase profits? The reasons are many, ranging from the desire to help the poor to administrative controls over allowable changes. Also, the sensitivity to price change today is significantly less than the ultimate response to a price change in the long run. Some medical goods—especially those for which consumers have several choices and enough information in advance of purchase, such as allergy medications—are price elastic.
For these goods, total revenues would decline if prices were increased. Thus, it’s more likely that a medical provider facing elastic demand is behaving more like a standard profit-maximizing firm. However, price controls, informal norms about overcharging, and other deviations from perfect competition may still be significant, even in the more price-sensitive medical markets. In conclusion, history health care economics has changed considerably. The primary reason that stimulus change in health care economic are technology and medical care, however a lot has to do with evolutionary changes that the U.S. endured from the beginning. It is very essential to comprehend health care cash flow system and economic history. Administrators use this data to help organize the future of the corporation. Because change healthcare improve the delivery health services fund and medical procedures cut the costs health insurance improve the nation health prevention and better nutrition and eliminate graft and corruption the health care industry while raising it is steady the rest the world Most significant, in this paper I elaborated on the history and evolution of health care economics and the timeline of finance using the term.
HHS. (2010, March). Key Features of the Affordable Care Act. Retrieved from U.S Department of Health & Human Services: http://www.hhs.gov/healthcare/facts/timeline/index.html PBS. (1960). Healthcare crisis History. Retrieved from http://www.pbs.org/healthcarecrisis/history.htm Thomas E. Getzen, J. M. (2007). The Flow of Funds Through the Health Care System. Retrieved from Wiley Pathways Health Care Economics: https://newclassroom3.phoenix.edu/Classroom/#/contextid/OSIRIS:42330586/context/co/view/activityDetails/activity/699329c0-2f30-4b04-b7f8-5fbcc80d8738/expanded/False