Supply And Demand In Health Care

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The Keynesian concept of supply and demand clearly captures the population trends in health care and foreshadows the diminishing sustainability of the current financing structure. Substantial demand for health care services will not be waning anytime in the foreseeable future. The jump from 4.4 million Americans over the age of 85 in 2000 to 6.3 million predicted in 2025 comprises a significant increase in demand for health care (Williams & Torrens, 2008). Accordingly, total health care expenditures grew from 1.2 trillion dollars in 2000 to 2.7 trillion dollars in 2015 (National Center for Health Statistics, 2017). Conversely, on the other side of the equation, supply is not increasing at the same rate as demand for health care. For example, 60,000 to 70,000 social workers specializing in gerontology are forecasted to be needed in 2020 while less than ten percent of that was available when measured (Hooyman & Unützer, 2010). …show more content…

While these individuals continue to work and pay into the system, the inevitable rationing of health care may be forestalled for a time. Nonetheless, systems will tend to stabilize to an equilibrium state and that cannot occur without health care rationing. Regardless of what government officials may promise, there is a limit to what services can be provided to a nation’s citizens without additional sources of revenue. Increasing taxation reduces the amount of income to be used to purchase insurance which increases the use of social health care which burdens the system to a greater

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