Description
Provide a review of these issues in a ten to twelve (10-12) page paper in which you:
Provide a detailed description of the issues that you have researched.
Analyze the most significant economic effects of the researched issues on healthcare industry. Provide at least two (2) examples of these issues to support your response.
Suggest specific strategies that relevant entities / stakeholders may use to address the selected issues from an economic perspective. Justify your response.
Determine the strategic manner in which the United States can apply best economic best practices from other countries in addressing these issues.
Assess the likelihood of government and or private sector effectively addressing the issues.
Use at least ten (10) current references. Five (5) of these references must be from current peer-reviewed sources to support and substantiate your comments and perspectives.
Your assignment must follow these formatting requirements:
Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
The specific course learning outcomes associated with this assignment are:
Analyze the factors that are influencing the demand and supply of health care services in the U.S.
Compare and contrast the U.S. health care system with the health care system of other countries.
Use technology and information resources to research issues in health economics.
Write clearly and concisely about health economics using proper writing mechanics.
Explanation & Answer
Attached.
Running head: FUTURE ECONOMIC ISSUES IMPACTING HEALTHCARE SECTOR
Future Economic Issues Impacting Healthcare Sector
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FUTURE ECONOMIC ISSUES IMPACTING HEALTHCARE SECTOR
Introduction
The US healthcare industry is facing some critical economic issues which are likely to
influence healthcare delivery in the next decade. Most of the issues are common to all other
economic sectors, but their impact in healthcare is a major concern US government and private
sectors. These issues arise from the need to provide high-quality healthcare services. Healthcare
organizations and individual practitioners are committed to implementing evidence-based
practices for improving the effectiveness and efficiency of care delivery. For instance, the
increased cost of healthcare is a major concern in the US, and the government at the federal and
state level is committed to addressing this issue. The survival, profitability, and sustainability of
the hospitals in the current issues are threatened within a proactive policy environment to address
these economic issues. This paper explores some of the key economic issues affecting the
healthcare industry and with potential for future impact. The economic issues in healthcare
explained in this discussion are the market forces that influence the delivery and access to quality
healthcare in the US. The key market forces in the US healthcare industry include increasing
healthcare costs, a high population of uninsured citizens, increasing the role of science and
technology, decreasing supply of healthcare services, and increased competition in healthcare
access which, if not proactively addressed will affect healthcare industry in the next decades.
Increasing Healthcare Costs
Description of the Issue
The cost of healthcare in the US has increased steadily over the last few decades. The
need to provide quality healthcare services has led to the high cost of services. The cost of
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FUTURE ECONOMIC ISSUES IMPACTING HEALTHCARE SECTOR
healthcare delivery has increased, and since organizations also seek to deliver healthcare services
at a profit the average cost is high. Some of the strategies used in the past to control healthcare
costs, such as decreasing the length of stay and cost reduction program, are less preferred (Rana,
Iorio, & Healy, 2011). The cost of labor in the healthcare industry has increased following the
need for highly specialized services. Dieleman et al. (2017) note that the healthcare expenditure
in the US increased by $933.5 billion from 1993 to1996. Within this period, 50% of the increase
is accounted for, increasing service intensity and price.
Other factors, such as population growth and aging, also have contributed to an increase
in healthcare costs. However, disease prevalence and incidences are not a significant cause of
increased healthcare costs in the US (Dieleman et al., 2017). The overall expenditure in the
healthcare industry is also high in the US than in other countries. In 2015 the total expenditure on
healthcare was $3.2 trillion, which accounted for 17.8% of the US economy. This expenditure on
healthcare is higher than for housing and food, and there is potential for a continued increase to
tie 25% of the US dollars to healthcare by 2025. Technology and increased implementation of
evidence-based practices for healthcare improvement will be a major cause of the increased cost
per patient.
Analysis of the Most Significant Economic Effects
One most significant economic effects of increased healthcare costs to the industry are
decreased revenue. In other words, the demand for high-quality healthcare services will remain
low. For instance, there is reduced access to healthcare services to low-income houses following
a decrease in income available for other services. Among the middle-income households such
services as follow-up, regular medical checkups demand will decrease significantly. Another
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FUTURE ECONOMIC ISSUES IMPACTING HEALTHCARE SECTOR
significant effect is decreased profitability and hence the low potential for growth for the
healthcare industry. While healthcare utilization remains, low other costs such as labor, IT,
maintenance are stable and hence limited finances for improving services. In the out of pocket
expenditure on healthcare, patient preference to use counterfeit drugs is high (Blackstone Fuhr &
Pociask, 2014).
Strategic Manner for US Application of Best Economic Practices from other countries
Unnecessary use of healthcare resources accounts for 30% of the healthcare costs in the
US. Some of the practices include exaggerated hospital stays, unnecessary tests, and unrequired
physician visits (Schnipper et al., 2012). These operations are considered not to have a direct
influence on patient health. Compared to other countries such as Norway, Spain, and Japan, the
real benefit of increased costs is lower in the US (Kotlikoff, & Hagist, 2005). The adoption and
adherence of evidence-based guidelines on cost reduction is the most significant strategic
initiative to control the rise in healthcare costs. Reducing unnecessary expenses focus on
improving healthcare quality without a significant increase in healthcare, considering that the
managed care system was introduced in the US in the 1980s and has realized controversy in
defining key benefits, more stringent options such as centralizing healthcare. Compared to other
developed countries such as the UK, Sweden, Norway, France, Australia, Germany, Canada,
Netherlands, Switzerland, and New Zealand, the US affordability and access to insurance
coverage is worst (Schoen et al., 2013). The healthcare insurance coverage is complicated and
includes high costs and complications in payment for insured citizens.
Increasing public funding in the healthcare industry is an effective strategic initiative for
reducing complexities resulting in increased healthcare costs. Public fu...
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