Summary of the Value of Life and the rise in Health Spending The article focuses on individual-level spending and willingness to pay to reduce mortality by elaborating on two key variables aggregate health spending and Life expectancy. These two factors are discussed at length using figure I and II, where they compare the consumption of health services with purchase of services or goods (not including investment in medical facilities) and project the historical growth in life expectancy towards the future. This article emphasizes on the fact that it uses constant which is crucial for understanding the rising health share. In Figure V this model looks back into the mid 1900’s and projects an average of 2.31 percent increase income of the population which would result in an increase in overall health sharing too. The two economic principles that counteract are diminishing marginal utility of consumption and the diminishing returns to the production of health. This model speculates that the health production elasticity declines very gradually, and the declining marginal utility of consumption dominates, producing a rising health share. Figure III estimates the elasticity of adjusted health status with respect to health inputs, by age …show more content…
Elasticity here measures the returns from health spending, in short the health production. It makes sense in saying that Younger age groups have more elasticity when compared to older age groups because of a couple of reasons. Firstly, the cost of health care and health expense is more in older age groups compared to the younger age groups and the second reason is that though the investment in elderly health improves the life expectancy it would not increase the productivity on the overall as, the health income generated through elderly population is low as they mostly utilize the Medicare and Medicaid services Provided by the
The purpose of financial measurement in healthcare is to provide the community with the services it needs, at a clinically acceptable level of quality, at a publicly responsive level of amenity, at the least possible cost. This is done by providing healthcare finance managers with accounting and finance information to help accomplish the purpose of the organization (Nowicki, 2015). When making accounting decisions about budgeting and inventory control, an understanding of economics, statistics, and operations research is needed. Major Financial Measures
The U.S. spending on health care is an outlier compared to other industrialized countries. On an individual basis heath care in the U.S is approximately double what other industrialized countries spend. On a total spend basis, the $3 trillion currently consumed in this sector represents the world’s fifth-largest economy. This high spending on healthcare is unsustainable in the long term. Businesses, individual consumers, and the government are consequently not insulated from the shrinking economic growth due to the ramifications of the high healthcare costs. In a global competitive market the U.S. business will lag behind other industrialized countries unless these high healthcare costs are curtailed. In addition, individuals, even those with insurance face the grim prospect of bankruptcy due to the high cost of care.
Wilper, A. P., Woolhandler, S., Lasser, K. E., McCormick, D., Bor, D. H. & Himmelstein, D. U. 2009. Health insurance and mortality in US adults. American journal of public health. Vol. 99, Issue-12, Pgs 2289-2295.
Variations in life expectancy and its changes are one major cause of rising income inequality. How long a person lives, as well as their quality of health, can have an important and huge impact on their income and social mobility. The life expectancy of the bottom 10% increases at only half the rate that the life expectancy of the top 10% does (Belsie). This shows that improvements in medicine benefit the wealthy more than the poor. The less wealthy have decreased access to good medical insurance and cannot afford more expensive, quality medical care. The poor are less likely to invest in healthy food and exercise, lowering life expectancy and overall health. These changes result in a cycle that causes the poor to be less healthy, and the less healthy to become increasingly poor. On the other side, the rich have different variations of habits, education, and environments, which can affect life expectancy, often positively for the
In order to make ones’ health care coverage more affordable, the nation needs to address the continually increasing medical care costs. Approximately more than one-sixth of the United States economy is devoted to health care spending, such as: soaring prices for medical services, costly prescription drugs, newly advanced medical technology, and even unhealthy lifestyles. Our system is spending approximately $2.7 trillion annually on health care. According to experts, it is estimated that approximately 20%-30% of that spending (approx. $800 billion a year) appears to go towards wasteful, redundant, or even inefficient care.
There is no doubt that health care costs are rising out of control. Look again at the information presented in this paper. It should make sense of things.
The development of value based healthcare reimbursement systems between healthcare payers and healthcare providers is evolving from the need to provide patients with beneficial healthcare technologies under conditions of significant economic uncertainty. The concept examined centralizes on shifting the focus of the healthcare system from volume to value. Value is measured by outcomes achieved based on a full cycle of care not volume of services rendered based on each service performed.
Rising medical costs are a worldwide problem, but nowhere are they higher than in the U.S. Although Americans with good health insurance coverage may get the best medical treatment in the world, the health of the average American, as measured by life expectancy and infant mortality, is below the average of other major industrial countries. Inefficiency, fraud and the expense of malpractice suits are often blamed for high U.S. costs, but the major reason is overinvestment in technology and personnel.
The Healthcare Cost and Utilization Project (HCUP) is a group of databases and software tools that are related and products developed through a Federal-State-Industry partnership and sponsored by Agency for Healthcare Research and Quality (HCUP Home, 2015). The HCUP databases are a data collection of organizations that participate based on their State and are Partners with Agency for Healthcare Research and Quality. Some databases that are listed in the HCUP databases are National Inpatient Sample (NIS), Kids’ Inpatient Database (KID), Nationwide Readmissions Database, State Inpatient Database (SID), and State Emergency Department Databases (SEDD). I am currently stationed in Texas but serving overseas. I decided to look up the state of Texas
With the United Nations listing health care as natural born right and the escalating cost of health care America has reached a debatable crisis. Even if you do have insurance it's a finical strain on most families.
...ions are ageing and increasingly, people are living with one or more chronic conditions for decades (World Health Organization, 2011). If the government can assist in regulating preventive health measure for citizens it will years down the line prove to be a cost effective measure. World Health Organization (2011) states that many chronic conditions were avoidable had the person ben able to receive the preventive education and care needed. Business owners may experience a slight inflation in cost to insure their employees but it does not amount to nearly half as much that will be saved by all citizens having access to preventive medical care.
Dubois, Mikael. “Response to Should People with Unhealthy Lifestyles Pay Higher Health Insurance Premiums.” Journal of Primary Prevention. New York: Penguin, 2011 32-27. Print.
All around the world, there are many families facing similar situations, especially when it comes to health care affordability. No family should have to worry about paying for health care while dealing with financial hardship. However, the term socialized medicine methods “a system in which all are insured (“universal health care”), all medical facilities are owned and operated by the government, and citizens are charged based on their ability to pay” (MacDonald). With this process taking into effect universal health coverage would become attainable, prevention of diseases spreading, and the health of communities would transform economies and nations. To better the health of the people, socialized medicine should become the way people pay for
The healthcare industry of the Bahamas is divided into two sectors, public and private health care. There are five hospitals, which includes two private hospitals and three public hospitals, and numerous public community clinics along with the many private facilities through which medical services are rendered (Doctors Hospital, 2009). The Princess Margaret Hospital, which is the main public facility, according to Smith (2010) in 1905 was people’s last choice when seeking medical attention. Smith described the then hospital as being partitioned into four areas, “for the sick, indigent, lepers and insane” (Smith, 2010). Smith (2010) further expressed that the medical services were free and those that were financially stable paid for treatment to be carried out at their homes. Today, 108 years later, much has changed within health care arena. Presently, there is an increase in the number of persons resorting to the public hospitals and public clinics for medical attention. For those that are in good financially standings they make use of private hospitals or/and other private medical facilities. While some people may use the public medical facilities by choice there are others whom, because of their income or lack of income, have no other alternative but to fall at the hands of the public services. Too, for many years the Bahamas has had the problem of immigrants from Haiti crossing the Bahamian borders illegally and this therefore results in an increase in the funds allocated for the health care industry. According to McCartney (2010) the Haitian nationals accounted for 11.5% of the Bahamas population, hence adding to the government health care budget (McCartney, 2013). The reality is that the Bahamas is far from winning...
The cost of US health care has been steadily increasing for many years causing many Americans to face difficult choices between health care and other priorities in their lives. Health economists are bringing to light the tradeoffs which must be considered in every healthcare decision (Getzen, 2013, p. 427). Therefore, efforts must be made to incite change which constrains the cost of health care without creating adverse health consequences. As the medical field becomes more business oriented, there will be more of a shift in focus toward the costs and benefits, which will make medicine more like the rest of the economy (Getzen, 2013, p. 439).