Healthcare Economics in the US

In the US, healthcare is one of the most expensive areas, which limits the access of many people to the required services. 90% of annual spending is allocated to treat chronic diseases, such as cancer, diabetes, cardiovascular issues, and so on. $199 billion is spent annually for heart disease and stroke, $174 billion – for cancer, and $147 billion – for diabetes (Centers for Disease Control and Prevention, 2019). These costs continue to increase due to the high morbidity, multiple complications, and unhealthy lifestyles.

The American healthcare system is supported by the government and businesses, but the growing costs affect them negatively. The companies should provide more funds to treat their employees, while the government has to continuously increase federal and state support. In this case, the government tries to reduce expenditures by increasing patient cost-sharing and limiting reimbursement to care providers (Lee, 2009). In turn, such measures make an adverse impact regarding the extent to which patients can afford care services. Americans who are not eligible for Medicaid and Medicare, those having low income, and unemployed citizens become most vulnerable to a lack of the needed care.

The current care delivery system moves towards a value-driven model compared to focusing on the volume of the provided services. Health plans and health systems tend to be synthesized, patient-centered care is to be promoted, and greater reliance will be placed on technology (Burrill, 2018). These trends are likely to increase care efficiency and competitiveness by offering more options for care and better patient outcomes. Among the main factors to keep costs down, there is disease prevention promotion, proper medical technology use, patient involvement in the care process, affordable prices for basic care needs, and care provider training.

References

Burrill, S. (2018). Health care outlook for 2019: Five trends that could impact health plans, hospitals, and patients. Web.

Centers for Disease Control and Prevention. (2019). Health and economic costs of chronic diseases. Web.

Lee, R. H. (2009). Economics for healthcare managers (2nd ed). Health Administration Press.

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