Factors Influencing Healthcare Financing and Delivery in the United States

Introduction

The healthcare system in the United States of America has undergone a massive transformation in the past 20 years. The government finances the health care system to improve its effectiveness and also targets to protect people from financial burdens. In the past years, the system has seen serious changes, involving shifts from indemnity plans initially based on the patient’s wants to a more managed healthcare system. In the United States, healthcare costs have locked people out of the service, and others do receive poor-quality care even when they pay out of pocket.

To address the issue, the government has carefully implemented financial policies such as Medicaid and Medicare to improve the quality of care and ease the financial burden (George Washington University, 2021). Despite government support, the cost of healthcare in the United States continues to rise, making treatment costlier to the middle class. This paper investigates the causes of changes in healthcare delivery and healthcare financing.

Causes of Changes in Healthcare Delivery and Financing

Changing Needs of Patients

Various factors, including the needs of patients, contribute to the transformation of healthcare financing. Much research is conducted to develop new cures for specific diseases a patient may present. These medicines sometimes help to manage the illness, and with such development, the entire healthcare system is affected as much as it positively impacts the patient. Patient care needs also evolve as people become old or once their immunity is compromised, which further demands more financing from the government.

Population Changes

The population of about 76 million people in the United States consists of people born between 1946 and 1964 who are retiring from the workforce. The aging population relies more on the healthcare system to maintain their health (George Washington University, 2021). In the United States, they depend heavily on Medicaid and Medicare, which increases federal spending, resulting in a shift in healthcare policies. It was estimated that retirees would cause an increment of government spending on Medicaid and Medicare by 5.9 percent in 2018 and 2019 (George Washington University, 2021). This impacts government policies as the government seeks balance within the system.

Shift in Healthcare Providers Training

Over the past 20 years, there have been a lot of changes in healthcare policies and advancements in medical technology. Due to these shifts in the field, the providers are also changing to meet the needs of the new working environment. Healthcare providers are the most valuable part of any functional healthcare system worldwide. Any policy change in the healthcare system directly affects their training, and this is more likely to affect how patients receive care in the hospital and demand a lot of finance to equip the medical colleges.

According to George Washington University (2021), the analysis of Harvard Business School physician graduates’ reveals that there has been a substantial increase in the number of doctors taking up Master of Business Administration (M.B.A) in the past 10 years. This drastic shift shows that in the future, most doctors want to venture into private practice or become healthcare administrators. But, this can also be attributed to the high cost of acquiring a master’s degree in a medical-related field.

Technological Advancement

Technology has been another important factor contributing to changes in the healthcare system for the past 20 years. Many inventions, such as biometric wearables that monitor a person’s health, and other technology, such as telemedicine apps, have greatly contributed to the shift. With these technologies, research in the medical sector has been simplified, and healthcare availability has improved as patients can take a more active role in managing their health (George Washington University, 2021). However, these technologies are very expensive as they lead to an additional workforce in the hospital, which leads to additional financing for healthcare.

Conclusion

Healthcare financing is the core of the healthcare system of the United States. Today the country’s healthcare system is not only complex but also changed. The shift in healthcare financing is triggered by various factors, including the patient’s needs, population changes, provider training and technological advancement.

References

George Washington University. (2021). How the Healthcare Industry Will Change. Web.

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StudyCorgi. (2025, March 12). Factors Influencing Healthcare Financing and Delivery in the United States. https://studycorgi.com/factors-influencing-healthcare-financing-and-delivery-in-the-united-states/

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StudyCorgi. (2025) 'Factors Influencing Healthcare Financing and Delivery in the United States'. 12 March.

1. StudyCorgi. "Factors Influencing Healthcare Financing and Delivery in the United States." March 12, 2025. https://studycorgi.com/factors-influencing-healthcare-financing-and-delivery-in-the-united-states/.


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StudyCorgi. "Factors Influencing Healthcare Financing and Delivery in the United States." March 12, 2025. https://studycorgi.com/factors-influencing-healthcare-financing-and-delivery-in-the-united-states/.

References

StudyCorgi. 2025. "Factors Influencing Healthcare Financing and Delivery in the United States." March 12, 2025. https://studycorgi.com/factors-influencing-healthcare-financing-and-delivery-in-the-united-states/.

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