ipl-logo

What Are The Three Primary Economic Challenges In Healthcare

999 Words4 Pages

The healthcare system faces numerous economic challenges that significantly affect resource allocation, disease prevention, and health promotion. David Parkin (2017) identifies three primary economic challenges: rising healthcare costs, limited resources, and increasing demand for healthcare services. These challenges necessitate strategic approaches to resource allocation, which directly impact the effectiveness and equity of disease prevention and health promotion programs. This essay explores these economic challenges, the approaches used for resource allocation, and the consequences of these decisions on health outcomes, efficiency, and equity. Economic Challenges to the Healthcare System Rising Health Care Costs: Health care costs have …show more content…

This increasing demand exacerbates the challenge of limited resources and heightens the need for efficient allocation (Parkin, 2017). Approaches to Resource Allocation in Healthcare Given these economic challenges, various approaches are employed to allocate resources in health care. These approaches include: Cost-Effectiveness Analysis (CEA): CEA compares different interventions' relative costs and outcomes. By assessing the cost per unit of health benefit (e.g., cost per quality-adjusted life year), policymakers can prioritize interventions that provide the most significant benefit for the lowest cost (Parkin, 2017). Budget Impact Analysis (BIA): BIA evaluates the financial impact of adopting new interventions within a specific budget context. Given current budget constraints, this analysis helps determine whether an intervention is affordable and sustainable (Parkin, …show more content…

(2017). The 'Paint of the 'Paint of the 'Paint of the 'Paint of the 'Paint of the 'Paint of the ' Assessing the performance of the program. In Medical Sociology, Social Policy and Health Economics. Accessed at: http://www.healthknowledge.org.uk/public-health-textbook/medical-sociology-policy-economics/4d-health-economics/assessing-performance. Parkin, D. (2017). The 'Paint of the 'Paint of the 'Paint of the 'Paint of the 'Paint of the 'Paint of the 'Paint of the ' Financial resource allocation - a.k.a. In Medical Sociology, Social Policy and Health Economics. Accessed at: http://www.healthknowledge.org.uk/public-health-textbook/medical-sociology-policy-economics/4d-health-economics/financial-resource-allocation. Parkin, D. (2017). The 'Paint of the 'Paint of the 'Paint of the 'Paint of the 'Paint of the 'Paint of the ' Systems of health and social care and the roles of incentives to achieve desired end-points. In Medical Sociology, Social Policy and Health Economics. Accessed at:

Show More
Related
1417 Words | 6 Pages

Increasing costs all around the globe due to economic downfalls is making this issue even more challenging. It is vital that we have some focus on revenue, but we can’t lose focus on the costs of running a business. In health care this can be very challenging because of all the changes involved with the government, in laws regarding health care reform. “Understanding the total costs of services will allow the redeployment of resources which provide a higher payback, or will facilitate the elimination of those resources altogether.” (Hughes, 2011).

Read More
1441 Words | 6 Pages

Competition should lead to lower costs and better quality of services, but, unfortunately, the US spends more money per capita than any other advanced country and has poor outcomes for many health indicators. Further, the US has poorer outcomes for many health indicators than other countries. In the United States in 2012, the cost of healthcare per person averaged about $9000 per year. In 2012, data from CMS stated that the total spending on healthcare in 2012 was $2.8 trillion (1). Despite competition in the health care field, two of the very prominent reasons for high costs are high administrative costs, the use of costly new technologies and drugs, and unhealthy behavior on (some, not all) of the patients’ behalves.

Read More
1205 Words | 5 Pages

[Cost] Cost could potentially be the biggest factor of the iron triangle and perhaps the side of the model that leaves administrators most puzzled. With new technology being released quarterly, drug prices soaring, a new aging population that can't be supported by the current workforce, Medicare cutting reimbursement payments and leaning towards insolvency, and the price per service continues to rise it seems as if cutting costs down may seem impossible. Not only have hospitals and clinics began looking for more cost-efficient ways to provide care or, unfortunately which programs to cut, the political arena has been evaluating this as well. Since Obamacare has not lived up to its true potential and glory an alternative method must be identified before the nation's model of healthcare implodes from high costs.

Read More
434 Words | 2 Pages

In 2010, the aggregate shortfall of government funding for Medicare and Medicaid beneficiaries was estimated at $28 billion dollars. Currently, Medicare and Medicaid in combined do not cover the complete cost of care for program recipients but their beneficiaries account for about half the care provided by hospitals . In the chart it shows the uncompensated care and payment shortfalls from Medicare and Medicaid in billions of dollars, 2010 Similarly, between 2000 and 2010, the cost of uncompensated care grew by 82 percent, from $21.6 to $39.3 billion. In the below chart it shows the cost-based uncompensated care in billions of dollars, 1990 – 2010 .EMTALA’s

Read More
547 Words | 3 Pages

Access to affordable healthcare is a major concern that has a significant impact on the well-being of people all across the world. Numerous problems with the current healthcare system exist, including issues with quality, affordability, and access to care. These difficulties are important because they affect how people, groups, and populations fare in terms of their health. Thus, addressing these healthcare challenges is crucial for promoting better health outcomes and improving the quality of life for individuals and communities. In this essay, examples of current healthcare challenges from Kristina Campbell's article "Ready to Respond: EBSCOhost" will be cited to illustrate and reinforce the arguments presented.

Read More
556 Words | 3 Pages

In hopes of having a successful health care system, the United States spends the most on health care but the quality of medical treatment and success is inferior to other countries. Although other countries provide health care at a reasonable cost to their citizens, challenges are still prevalent in their system. Challenges arise when medical treatment is provided to all citizens regardless if the patient has the means to pay for their care. From a humanity perspective, health care is a basic human right, but from an economic and business perspective it is impossible to provide care to

Read More
1270 Words | 6 Pages

Comparing the efficiency of healthcare systems across nations sheds light on the elements, such as access, quality, and cost of care, that lead to better health outcomes (Busse et al., 2019). Policymakers and healthcare professionals can implement evidence-based strategies to improve healthcare delivery, making healthcare more accessible and affordable for everyone, by identifying best practices and areas that need improvement. Researchers can also spot knowledge gaps and new research opportunities to improve healthcare outcomes by contrasting healthcare systems. In the end, contrasting healthcare systems add to the ongoing discussion about how to give people worldwide access to high-quality, affordable

Read More
537 Words | 3 Pages

In the United States, healthcare is primarily a for-profit organization, this has resulted in unreasonable costs. Additionally, the lack of universal healthcare coverage and insurance options for low-income individuals heightens the problem. These issues have led to a system where access to healthcare is a privilege rather than a right. By viewing the high cost of healthcare through the lens of sociological imagination, I can understand it as a symptom of larger societal problems.

Read More
461 Words | 2 Pages

For the past 40 years health care spending has consistently grown faster than the economy. The reasons for the higher levels of spending on health care in America are not totally understood but include higher costs of treatment in the U.S. health care system, including rates of reimbursement for doctors and other health care providers; higher prices for hospital stays and prescription drugs; increased use of medical technology; a lack of reliable comparative information on medical outcomes, quality of care, and cost; and increased prevalence of risk factors such as obesity that can lead to expensive chronic

Read More
410 Words | 2 Pages

Achieving health equity requires valuing everyone equally with focused and ongoing societal efforts to address avoidable inequalities, historical and contemporary injustices, and the elimination of health and health care disparities (Office of Disease Prevention and Health Promotion, n.d., para. 4).” The Beureau of Health Workforce makes available monetary support and policy guidance in conjunction with Healthy People 2020 objective AHS-3, Increase the population of persons with a usual primary care physician (Offices of Disease Prevention and Health Promotion,

Read More
1010 Words | 5 Pages

Controlling healthcare costs has been a primary focus of legislation and healthcare reform for nearly a decade. But, at what cost? Do the strategies intended to control healthcare spending negatively impact patient care? Are payers using the process of utilization review to their advantage to deny claims submissions?

Read More
1257 Words | 6 Pages

Introduction: Throughout the progression of American History one of our nation’s most pressing concerns lie in the discussion around proper healthcare for all. The economic component of healthcare remains, and the burden of medical bills are existent in today’s money driven society. The great economic healthcare debate “began with a dual mandate: to expand benefits and to contain costs. As the debate progressed, talk of cost containment faded.

Read More
331 Words | 2 Pages

By reducing health disparities, vulnerable populations are empowered, increasing the equality in access to health care services, quality of care and efficiency of services. The United States is currently integrating the population health framework into its health care system to be understand the different determinants of health. As described by Jonas & Kovner, population health involves primary prevention, as well as the ability to involve social, behavioral, and environmental determinants of health in a way that the patients will be able to carry out their medical providers’ recommendations about lifestyle behaviors to reduce potential complications as well as to prevent social crises such as homelessness and losing jobs (95).

Read More
989 Words | 4 Pages

Introduction People hope and seeks long and healthier lives. Thus, health care is the act of taking preventative or necessary medical procedures to improve people well-being. Improvement or preventative may be done with surgery, the administering of medicine, or other alterations in a person 's lifestyle. These services are usually offered through a health care system made up of hospitals and physicians. Although, the health care system is set up to reduce or to prevent disease etc., there is a gap or disparity in the US health care system.

Read More
1533 Words | 7 Pages

This is so because, universal access to health will really do good to the world and it is a Necessity in order to reduce the level of discrimination experienced in terms of finances . Universal access to health will ensure that there will be access to equitable quality health care and will also give security to those who are financially incapable at the present to afford quality health care die to their financial status. Although this may be the case in the future, there will face challenges especially in implementing the regulations that would be set up in order to enable equal distribution of medical resource and

Read More

More about What Are The Three Primary Economic Challenges In Healthcare

Open Document