Premium Essay

Hcs/440 Individual

In: Business and Management

Submitted By amrain143
Words 749
Pages 3
Economic Terms and Health Care History
Amber Rainwater
HCS/440 Economics: The History of Health Care
February 26, 2012

Health Care History
Throughout the history of the United States, the economics of the health care system has experienced many changes. There are many factors to consider that has been the drive behind many of the changes within the health care system. Medical and surgical technologies are some factors that relate to the changes in health care. Besides these factors, allocating sources to fund health care services has always been the most critical factor. One might consider the economic term supply and demand when looking at the history of health care economics and the primary funding source. Health care funding has always been a challenge and will continue to be a barrier due to the lack of resources within our nation.

The primary source for funding medical services has faced many changes throughout U.S. history. The need to utilize medical services has increased, which led to the implementation of health care insurance. This came into effect due to the growing demand for health care services at a lower outer pocket expense. The challenge of funding medical services has always been a struggle. It was President Harry Truman that first approach Congress to enact a national insurance program back in 1945 After many failed attempts, President Johnson finally signed into law the Medicare and Medicaid program on July 30, 1965. Medicare is a government funded program that insures individuals 65 and older and those who are permanently disabled. Medicaid is also a government funded program that provides coverage to indigent Americans.

Health care in the United States represents an average of 17% of the GOP. Medical services have grown to be a trillion dollar business. The government is the largest source for funding health care…...

Similar Documents

Premium Essay

Dogs vs Cats

...Jennifer Elliott hcs/440  07/21/2014 Health care history Jennifer Elliott hcs/440  07/21/2014 Health care history Before the 1900s, there really wasn't what you could call major health care in this country. The American Medical Association also known as the AMA was just finally taking off the ground, hospitals were just getting established, doctors still made house calls and traded their services for goods, and people still used a lot of home remedies to treat their ailments. Health insurance was unheard of, but between 1901 and the 1940's medicine and health care made some major jumps and went far. Hospitals became more and more important, advances were made in antiseptics and cleanliness, antibiotics were discovered, and several people were coming up with ideas for health insurance and employer medical benefits. President Truman proposed a national health care plan, but it was shot out of the water by both the American Medical Association and Congress. By the 1960's, though, we started to see health insurance companies popping up all over, Social Security had been implemented, and Medicare and Medicaid had been signed into law. HMO's came into existence in the 1970's and health care costs began to climb radically, eventually spiraling out of control! Over the past fifty years, we've seen health care costs continue to rise to the point that some low-income families and the elderly are unable to get medical treatment. Decentralization of the hospital care system......

Words: 517 - Pages: 3

Free Essay

Hcs 440 Week 4

...Economic Issues Simulation HCS/440 July 9, 2014 Jonathan Foskett Economic Issues Simulation Constructlt is a company, which currently employs 1,000 individuals, 550 men and 450 women in the age group of 26-42. Approximately 60% of the group is married. The group is willing to pay up to $4,000 dollars per individual for their annual premium. Castor Collins must weigh the many considerations when deciding to insure Constructlt, the premiums employees are willing to pay, risks of providing a certain plan or service, and the expected utilization (University of Phoenix, 2014). In order to maintain a profit Castor Collins needs to take all of these aspects into consideration. Thirty-two percent of the individuals at Constructlt have a working profile, which involves significant physical activity, and only 25% have a working profile with moderate activity. When determining which insurance plan is best for Constructlt it is best to look at the health risk factors of the group. Thirty-eight percent of the group, which breaks down to 170 men and 210 women, has no major health risks. Conversely, 18% of the workers, 10% men and 8% of the women are smokers. The principal health risk factor affecting the group is obesity. Of the Constructlt group obesity affects 39% of the group. Hence, increasing the risk for obesity related diseases like high blood pressure, heart disease, and diabetes. Due to the health risk factors utilization will increase......

Words: 1073 - Pages: 5

Premium Essay

Health Care History

...of Health Care HCS/440 November 22, 2011 Humberto Munoz History and Evolution of Healthcare While some can contribute these changes due to the evolutionary changes the US has undergone since her inception, the major contributing factors that influence the changes in health care economics are advances in technology and medical care. By understanding the history of health care economics, and identify the flow of funds system, financial managers are able to be more adequately prepared for the future. It is essential to remember that the driving force behind health care economics is money, and it plays an integral part to the success of the health care industry.     “Who pays for what has changed dramatically in the past 60 years. Whereas in the past, the majority of individuals paid their medical bills with private funds, today insurance companies and other third parties cover the majority of payments, with individuals paying only a small fraction of the total flow of funds with private money” (Getzen & Moore, 2007, p. 3, para. 1).   The flow of funds is a system in which financial managers are able to “follow” the money through the health care system, and as stated above the initial flow of funds have drastically changed from past years. History shows that many physicians would trade services for non-money items (such as grain, cotton, livestock, etc.) as forms of payment if the individual was unable to......

Words: 354 - Pages: 2

Premium Essay

Hcs 440 Week 2 Dq.Docx

...How might a lifestyle choice affect the demand for health care services? The health status of every individual is relative to environmental and heredity factors. In general, the average individual doesn’t have control over their genetic makeup; however, there behavioral lifestyle is and it influences their overall quality of life. Environmental factors are things that an individual can always alter to improve their health. For example, changes in their diet, physical maintenance, and stress. The decisions from the initial case deal with treatment; further along there is areas of discipline, education, responsibility, and adopted healthy lifestyles. With this in mind, the wrong decision will equally influence health care supply and demand significantly. For example, the increasing rate of diabetes in the country is a result of either decision. Type 1 diabetes is a hereditary form of the virus caused from the digestive system not processing insulin. However, type 2 diabetes is caused by environment influences which cause the pancreas to insufficiently produce insulin. Type 2 diabetes is usually caused by obesity. In fact, I researched this information before for a previous class and its been proven that 95% of all diabetes infected individuals have type 2 diabetes. The overall number of individuals with diabetes make up 30% of the U.S. population. The number of individuals with the disease began to spike in the mid 1990’s and the demographic equally expands from young......

Words: 1850 - Pages: 8

Premium Essay

Hcs 440 Week 5 Learning Team Health Care Reform Project Part Iii

...This paperwork contains HCS 440 Week 4 Individual - Economic Issues Simulation Paper General Questions - General General Questions Review the Health Care Economics Issues HMO Simulation exercise posted on your student web page. Follow the Wk 4 WEB LINK “Understanding Economic Issues for HMO’s”. This exercise is for your learning experience only. Do not post any screen short from the exercise as part of your assignment. Economic Issues Simulation Paper Prepare a 1,050- to ,1400 paper in which you present a profile of each company including the demographics of the employees, the health care risk factors (potential areas of high utilization), and the premiums the company is willing to pay. Apply each plan, Castor Standard and Castor Enhanced to each company, Constructit and E-editor, to determine which plan best meets the healthcare needs of the employees – ignore Dearden. As a representative of Castor insurance, your job is to maximize profit and minimize risk for the company. Based on your analysis of potential utilization, give at least two reasons why each plan could be selected for each company. Then select one of the two companies and state which plan you would select to sell to that company? What are the reasons for this decision? Why did you not select the other plan offered? Your paper should be organized so that each question serves as a subheading followed by the discussion, i.e. Two Reasons Why Each Plan Could Be Selected,......

Words: 374 - Pages: 2

Premium Essay

The History of Helathcare

...The History of Healthcare Economics Stephanie Creech HCS/440 December 12, 2011 Bert Munoz The History of Healthcare Economics When healthcare first began just about anyone could practice medicine, and it stayed this way in the United States until 1806 when the first licensing laws were passed in New York (Wellness Directory of Minnesota, 2003). Since then healthcare has evolved; changes in technology, organization, and payment structures just to name a few are constant. Keeping up with them, and understanding how they affect healthcare economics can be challenging to say the least. Although, there are many factors that contributed to these changes perhaps the biggest factor was the technological advances and changes in the quality of medical care. To be able to prosper now, and plan the future one must study the past. Healthcare mangers must fully understand the history and flow of funds in healthcare economics to be effective in their positions. Although, it seems obvious it is important to remember that the driving force behind any organization including healthcare is money. Money is vital because without it the organization would have to close. “Formalized medicine in America began in the 1800’s and continued until the 1930’s. This helped to establish the medical profession through both expanded duties and formal education” (Wasley, 2011para4). When doctors or physicians first began some would barter with their less fortunate patients to ensure......

Words: 703 - Pages: 3

Premium Essay

Healthcare Spending

...Healthcare Spending Heather Satterfield HCS/440 July 19, 2012 Osama Metry Healthcare Spending Healthcare spending involves researching trends of expenditures at a national level as well as researching the effects of the economy. It is important to take into account what best benefits the healthcare system. It is important to discuss how healthcare needs are financed and the immediate attention needed for the future of healthcare. In the current economy the cost of healthcare has risen and wages have decreased. In order for an employer to provide insurance for employees it is necessary for premiums to go up because the insurance companies have doubled the cost for the employer. Over the last ten years the percentage of one’s income that is paid for insurance rose from 12 percent to 22 percent. The reason for this rise is due to private payers’ compensation rising from 5.4 percent to 7.3 percent. This caused the employees’ salaries to go down. Due to this, small business were on a fast pace to going under. In order for the small businesses to stay above water it was necessary to cut insurance coverage from 65 percent to 59 percent. The Affordable Care Act was developed for relief on the premiums. In addition it protected Americans that were uninsured or had preexisting conditions. It was once thought to be impossible to receive healthcare benefits if one had a preexisting condition. In the year of 2014 it is thought that insurance costs will decrease....

Words: 935 - Pages: 4

Premium Essay

Economic Terms

...Economic Terms and Health Care History Courtney Kuhns HCS/440 November 19, 2012 Khaki Weber The history and evolution of health care economics is as changing over the course of time as is our country itself. These changes can be contributed to the evolutionary growth in the United States since the beginning but it is also because of the continuing advances in health care and technology. It is important to understand the history of health care economics and identify the flow of funds system to move forward in health care with better service and change things for the future. As with any business, health care is moved forward and changed with money as the driving force to make profits and sustain business. The health care industry has to find a way to thrive and also make sure people are getting proper and needed care to continue moving forward while keeping the nation healthy. Getzen & Allen (2007) state “Whereas in the past, the majority of individuals paid their medical bills with private funds, today insurance companies and other third parties cover the majority of payments, with individuals paying only a small fraction of the total flow of funds with private money. Just as the source of funds has changed, so has the use of those funds. Increasing intensity in the quality of medical services has resulted in increases in medical spending that surpass increases in inflation, wages, and even the use of health care services”. History shows that back in the 1800s to...

Words: 940 - Pages: 4

Premium Essay

History and Evolution of Health Care Economics

...History and Evolution of Health Care Economics Kimberly Geeter HCS/440 March 28, 2011 Pranab Rout History and Evolution of Health Care Economics Health care economics have changed so much during the course of history. While a lot has to do with the evolutionary changes that the U.S. underwent since inception, the major factors that have influenced change in healthcare economic are medical care and technology. It is important to understand healthcare economic history, and the cash flow system, managers are able to use this information to help prepare the company for its future. It is very important to remember that the drive behind health care economics is money, money helps run health care organization and it’s the key to success “Who pays for what has changed dramatically in the past 60 years. Whereas in the past, the majority of individuals paid their medical bills with private funds, today insurance companies and other third parties cover the majority of payments, with individuals paying only a small fraction of the total flow of funds with private money” (Getzen & Moore, 2007, p. 3, para. 1). History shows that physicians would trade medical services for non-money items (such as cotton, grain, and livestock) as forms of payment if a patient was unable or couldn’t afford the services. As the US advanced in historical factors such as the World Wars, the Great Depression, and technology, a new system had to be used to help the U.S. population......

Words: 860 - Pages: 4

Free Essay

Economic Terms and Health Care History

...Economic Terms and Health Care History Shonda Menezes HCS/440 John Gaze January 16, 2011 Economic Terms and Health Care History Health care economics has gone through many changes over the years. With all of the changes health care organizations have had to adjust their financial strategies as well as their organizational strategies. The economy has had a lot to do with all of these changes. Healthcare organizations have so many demands put on them. Some of the changes that have occurred are due to the advances in medicine such as diagnostic, procedures and pharmaceutical. Insurance Payments over the years have changed. It used to be that you had health insurance and your bills would get paid over the years the payment system has changed and more and more is coming from the patient’s pocket. In this paper the focus will be these key terms supply and demand, microeconomics, microeconomics and elasticity. The issue is not how to fill or reuse empty beds. In this changing environment, hospitals and health systems must focus on streamlining and simplifying operational processes, facilitating case management, promoting the least costly setting for care delivery, and optimizing resource sharing among departments. When hospitals have addressed these issues, then solutions to the “bed problem” will be obvious.Cynthia Hayward, 1996(Marcinko, 2007). Division of economics focused on evaluating scarcity in health care systems in different economies. ("Health Economics"...

Words: 783 - Pages: 4

Premium Essay

Healthcare Economics and Timeline

...Health Care Economics and Timeline By: Morgan Pence HCS/440 Jonathan Foskett Due: May 9, 2016 Economics is described as the science that deals with the production, distribution, and consumption of goods and services, or the material welfare of humankind. The timeline of healthcare is very important because it helps to show what has happened and why the country is where it is today with the healthcare industry. It changes all the time so the timeline will always be changing and it is important to keep up to date with what is going on. This paper will help to show how the country has come to where it is today. Before the 1900’s there was not really anything that could be called major health care in the country. Doctors were still making house calls, people would use supply and demand to be able to get treatment, home remedies were being used a lot and The American Medical Association (AMA) was just getting off the ground, and hospitals were just being established. At this point in time health insurance was unheard of. During the 1900’s Teddy Roosevelt became president was the first to introduce the idea of health insurance and called or all Americans to have universal healthcare. During the Great Depression the Social Security Act was signed which provided states with the funds to build health departments and it established benefits the elderly. During the 1940 President Truman signs the Hospital Survey and Construction Act which allowed the states to access Federal......

Words: 711 - Pages: 3

Premium Essay

Economic Terms and Healthcare History

...Economic Terms and Healthcare History Natalie Ward University of Phoenix HCS/440 1/30/2012 Economic Terms and Healthcare History Health care economics have drastically changed over the course of history in the United States. While some can contribute these changes due to the evolutionary changes the US has undergone since the beginning, the major contributing factors that influence the changes in health care economics are advances in technology and medical care. “To help ease the healthcare problem, Baylor Hospital in Dallas created a system - which eventually became Blue Cross - to help people pay their hospital bills. As science, medicine, and hospitals grew more sophisticated and more successful, more people turned to hospitals and doctors for care - and costs continued to rise. Blue Shield insurance for doctors' services started gaining ground in the late '30s as a way for doctors to protect their interests and their payments” ("How Did Healthcare Come About In The United States?", 2012). It is essential to remember that the driving force behind health care economics is money, and it plays a vital part to the success of the health care industry. In the past, the greater part of us paid medical bills with private funds; today insurance companies cover the bulk of the payment, with people paying only a small portion of the total. It is important to understand healthcare economic history, and the cash flow system. Today, financial managers......

Words: 952 - Pages: 4

Premium Essay

Economic History and Health Care Funding

...Economic History and Health Care Funding Monica Williams HCS/440 July 1, 2013 GEOFFREY SUSZKOWSKI Economic History and Health Care Funding The paper that is being written is covering the history of economics and how the economy and health care funding has changed. The paper will reveal how the two compare in today’s society. It will evaluate the money used to fund certain health care services such as Medicaid/ Medicare, HMO’s, and how places like hospitals and nursing homes receive compensation for taking care of patients. The paper will also go into detail of how elderly pay to have certain services such as home health services provide care in their place of residence. One must wonder what economic history and health care funding is. Well economic history is the way people with supply and demand which is how the price of a commodity or commodities are determined; the cost of the production of a product that is being made, wealth and the level of income, and the structure and operation of overseas trade. Some would believe that Health care funding is how most people can afford health care, seeing that the cost of receiving it is very high. With that being said, the government did not fund health care like they do now. There were no health care programs like the ones that are available today. Back in the old days people would be able to afford health care only if they could pay their doctor in food or whatever little......

Words: 819 - Pages: 4

Free Essay

Health Care Spending

...Economic Terms and Health Care History Tina Hamm HCS 440 November 28, 2011 Nanc Renninger There are many terms that are used in Healthcare History, some of which have been used since the beginning of time and some that have been adapted over the years with the never ending changes in healthcare. In the next few paragraphs we will learn when these terms began and where they take place. When one learns the history of healthcare and the fundamentals of the economic terms they are able to better understand just how the system works. The terms that we will learn about in the paper are as follows: economics, supply and demand, microeconomics, macroeconomics, elasticity, inelasticity, and gross domestic product. There are constant changes and amendments all the time and for this very reason all persons within the healthcare business has to history in order to be prepared for future changes. Let’s start with economics in healthcare and how it has changed over the years. The major reason for the change in economics is due to the continuing change in technology and the different ways healthcare is offered. In the 1800’s is when healthcare began to take a formal way of medical technology. Doctor’s started to form hospital structures and education became necessary. In the 1900’s America was the largest of population to have hospitals only to find a economic decline that made the stock market crash. I am sure everyone has heard of the Great Depression, which made it...

Words: 879 - Pages: 4

Premium Essay

Terms in Health Care Industry

...Economic Terms in the Health Care Industry Nicole Hunter HCS/440 Economics: The Financing of Health Care August 27, 2012 Kristin McFarland, MSA, AASPR Economic Terms in the Health Care Industry In this paper the history of economics will be discussed and how economics pertains to today’s health care world. Understanding terms that are used in economics can help with better understanding this subject. We will discuss terms such as economics, supply and demand, macroeconomics, microeconomics, elasticity, inelasticity, and GDP. Supply and demand will also be researched further and the different issues that it can apply to in the health care industry. Economics Economics is a science that focuses on distribution, production, and consumption of services and goods. Resources that can be used include talent and time available, buildings, land, knowledge, and equipment. Knowledge of how to use all of these resources to create a successful products and services is also useful in economics. Some choices that are made in economics are, just how much time to dedicate, how much money to save, how much money to save, combining of resource, and the role of the government. Supply and Demand The price of a commodity is the relationship between supply and demand. Supply and demand is essentially the backbone of the economy. Demand refers to the quantity of products and services that buyers wants and are willing to buy within a certain price range. Supply is how much can be......

Words: 1035 - Pages: 5