1. Introduction to the Healthcare system
a. Overview
Conventionally India has been a rural, agricultural economy. Three fourth of the population lives in the rural areas. Healthcare is one of the largest service sectors of India. It can be seen as a glass, which is half empty or half full. The healthcare system of India faces significant challenges like the need to reduce the infant mortality rates, provide health insurance and creating awareness amongst the public. The private health care sector in India is very influential in both rural and urban India and has monopoly over curative services and over hospital care Post-independence India’s most noteworthy achievement in the public healthcare has been the decrease in mortality rates. In 1951 the life expectancy was 37 years, which increased to 65 years by 2011. In recent year’s the public spending on health increased nearly to 15% of the total health related costs. To summarize there has been a progress in the health status- especially in terms of life expectancy. The government spending on the healthcare in India is very small (0.9%) relative to the GDP whereas in developed companies like USA and Germany its 5 percent of GDP or more and for other Asian countries like china and South Korea its almost 3 percent. It makes it quite remarkable that India, which is seen as internationally as a economic powerhouse and as a success stories of economic growth in the past decade has health expenditure less than of 1 percent of the GDP. Health is a major subject of concern for the Indian government. The major spending comes from the private sector which accounts for more than 90% of the total expenditure on healthcare. The main motive of the paper is to understand the relationship between...
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An issue that is widely discussed and debated concerning the United States’ economy is our health care system. The health care system in the United States is not public, meaning that the states does not offer free or affordable health care service. In Canada, France and Great Britain, for example, the government funds health care through taxes. The United States, on the other hand, opted for another direction and passed the burden of health care spending on individual consumers as well as employers and insurers. In July 2006, the issue was transparency: should the American people know the price of the health care service they use and the results doctors and hospitals achieve? The Wall Street Journal article revealed that “U.S. hospitals, most of them nonprofit, charged un-insured patients prices that vastly exceeded those they charged their insured patients. Driving their un-insured patients into bankruptcy." (p. B1) The most expensive health care system in the world is that of America. I will talk about the health insurance in U.S., the health care in other countries, Jeremy Bentham and John Stuart Mill, and my solution to this problem.
To comprehend our current health care system, it is important to understand the history and how health care has evolved in the United States. The healthcare system we have now didn't always exist. Believe it or not, before 1920, most people would not of known what health care coverage meant! So how did the United States turn into one of the few developed countries lacking nationwide healthcare? Understanding U.S. healthcare history will help you understand the dynamics that built the system that, we struggle with today. Furthermore, I will make conclusions on the current problems we are facing.
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Health is by far the most important thing for a human being, so every penny invested on it has to work. This essay is about the study of the current state of American health reforms and why they are desperately required. Unfortunately things are not that bright as they might seem, an American investing most of their money on health care is basically not getting the level of health care they deserves. With all the investment in the medical field and all the advancements of medical domains, government should be providing best health care in the world for its people.
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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.
According to Roy, 2013 the issues of providing the affordable care act will unite both the supporters and offenders of the public policy, but in this current situation where the input costs are rising, it will become impossible for government in managing the public policy related to affordable health care. In order to provide affordable health care, majority of the US government has tried out different policies time to time, but unable to get success in realizing the actual policy goals. By providing the affordable health care to majority of the people who requires more amount as controlling the input cost is not possible (AAMC, 2013). Lack of doctors is one of the primary issue in providing high quality health care to the citizens especially those who are financially poor. The Supreme Court of the country passed an Act related to Health insurance as all should have Health Insurance to all the country people by the year 2014, but the at the same time government is concerned about constitutionality of these act (NYTimes, 2013).
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The demand for medical care is derived from our demand for good health. Michael Grossman was the first to do econometric research on this topic. “Grossman’s work established two approaches for consideration. In the first, medical care is viewed as an input in the production function for health, and in the second, as an output produced by medical care providers (Henderson, p.142).” There are two main factors that determine the demand for medical care. The first is the patient factor. This includes a patient’s health status, demographic characteristics and economic status. The second is the physician factor. This is an interesting topic because it introduces the principal (patient)-agent (physician) problem. We are faced with the problem of diminishing marginal returns for health. At a certain point, we can only produce so much health. The question we need to ask ourselves is what is the optimal budget for medical care? This is a question that can not be easily answered due to our changing demand for medical care. If we get sick we demand more medical attention. Or, if we choose to live more dangerously this will also increase the demand. Therefore, who should pay for these increased costs for medical insurance? “Medical care spending is not the only thing that improves health. Other factors affecting health status, such as life-style, environmental pollution, and technological developments, will shift the total product curve (TV).” Figure 4.1, on the next page graphically shows that health status obeys the Law of diminishing productivity. The graph below the total product curve is the marginal product curve. The derivative of the total product curve is the marginal product curve. This curve represents the marginal change in health status. You can see this curve is negatively sloped and can be negative. The maximum point on the total product curve is the total amount of health that we can get out of life. You may know from calculus that the slope of a line at a maximum or minimum is zero. If you look down on the corresponding point on the marginal product curve it lies on the x-axis. All medical treatment after this point is negative. What does this mean? Yes, medical treatment can be harmful to your health if too much is applied. A good example of this is an X-ray. The radiation from multiple X-rays is extremely dangerous. This negat...
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