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Current and Future Economic Issues Impacting Healthcare Sector

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Current and Future Economic Issues Impacting Healthcare Sector

S. Ruff Dr. Merle Point-Johnson HAS 510 June 15, 2015

Abstract Not unpredictably, the increases in health care spending and the share of GDP dedicated to health care have raised up concerns about the negative influence of health care cost inflation on the U.S. economy. In an era of global economic markets, these concerns are reinforced by the status of the U.S. as a spending outlier among competing nations. The major concern is that rapid increases in health care spending can affect major economic indicators such per capita GDP, employment and inflation. The effects are likely to occur across all sectors of the economy, governments, businesses and households as all these interrelated sectors play an important role in the delivery, financing and consumption of health care in the US. Yet, the view that rapidly rising health care costs harms the U.S. economy is not without nonconformists, and some projecting economists opinion increases in health spending as having a neutral, or perhaps even a positive, economic effect. Pauly (2003) has contended that increasing health care expenditure naturally consequences in rapid growth in the health care and associated sectors, and in employment and incomes for workers in those sectors. Particularly, health care firms are largely U.S. owned. A related argument is that as total per capita GDP rises, consumers may choose to spend a higher portion of their income on health care consequently improving population health and productivity.

Description of the issues researched
Though most Americans agree that the healthcare system needs to be changed, they remain dolefully oblivious of the problems facing the health care industry at large. There are five main factors that must be addressed in order…...

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