Health Care Economics

Topics: Economics, Health care, Health economics Pages: 3 (754 words) Published: June 24, 2013




The economics of United States health care has been through many changes over its history. There are multiple factors to what caused the changes to the health care system over time with changes such as technological advances in medicine and surgical devices, new medical discoveries, and financial laws pertaining to health care. Just as with other businesses, the health care industry’s economy would depend upon supply and demand of their services. Throughout the time that health care has been undergoing these changes, it remains that the economical situation in health care has been the main focal point to how well that health organizations in the United States will perform. -------------------------------------------------

In the early 1900s doctors were just beginning to cease being expected to offer care for free, medical care costs were finally becoming emphasized, and insurances were just getting involved into the health care industry (PBS, 2012). The idea of a national health care policy is first introduced by President Truman in 1945, he would be denied by the American Medical Association campaign against the idea. Eventually in 1960 the American Medical Association would develop a national policy as well that would be signed into law by President Johnson and would become the foundations for Medicare and Medicaid (Rebelo 2007). As of the past two decades, the cost of health care have rapidly been on the rise (PBS, 2012). -------------------------------------------------

As new medical discoveries occurred in health care and technology advanced, physicians became more capable of treating patients for their illnesses. Financing in medical organizations is important so that they may afford to do...

References: -------------------------------------------------
Getzen, T., & Moore, J. (2007). Health care economics: Principles and tools for the health care industry. (1st ed.). John Wiley & Sons inc.
PBS. (2012). Pbs. In PBS. Retrieved from
Rebelo, L. P. (2007) The origins and the evolution of healthcare economics: A discipline by itself? Led by economists, practitioners or politics?. Retrieved from http://
Economic Terms Excercise
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