Essay on Funding Health Care Services

Health is a significant driver of our overall quality of life. The health care expenditure of the US has been increasing steadily as a share of gross domestic product over the last half century. The increase had been from 5.0 percent of the GDP to 17.4 % in 2013. Reports indicate that the United States spent $2.6 trillion on health care in 2010 due to the spread in the population. This, therefore, indicates that 17.9% of the nations total economic activities was used (Henry, 2012). The year 2014 and the year 2015 were crucial years in the US health care industry since there was the introduction of the Affordable Care Act which led to the medical insurance expansion and coverage since 1965 and also in 2015, the Medicare and Medicaid programs followed.

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There has been a dramatic change on how health care is provided, consumed and financed since 1960. During the 1960s and the early 1970s, the personal health care prices per person increased as a level of a relatively modest pace with an average growth of 2.1%. The increase in expenditure continued throughout 1961, 1965 and 1973 (Henry, 2012). The increase was faster than the GDP price growth. During the 1974 to 1982 period, the health care prices increased with an average of 9.7% compared to the GDP prices which was 7.7 %.

In the 1990s and early part of the 21st century, the consumers demanded that the management of the health care should be less restrictive and as a result, their services use was increased continuing the strong influence that the non-price had on the health expenditures (Henry, 2012). Between the year 2008 and 2011, the severe economic recession and the modest recovery had an impact on the health spending. Health care spending, therefore, increased along 1960 to 2013 as the responsibility for covering the expenditures shifted among the sponsors of the health care (Henry, 2012). The sponsors included the businesses, households, and governments which ultimately financed health care payers like the Medicare and Medicaid.

When someone indicates that the health care system are different today than they were a decade ago, that might be an understatement (Devers, Brewster, & Casalino, 2003). The use of programs like Medicare, reimbursement reductions and the rise of uncompensated care have created an emergence of an atmosphere where hospitals especially the smaller ones are happy with a break-even balance sheet (Devers, Brewster, & Casalino, 2003). The health care, therefore, has two options which are to cut costs or create a new revenue stream. The implementation of the continuum of the health care like how services are provided within the administration and a more efficient process for an appropriate discharge.

By realigning the hospital's goals towards the continuum care, they can focus on one of the most relevant aspects which are reducing the readmissions. Readmissions impact the hospitals bottom line negatively like the high costs that are associated with the scrutiny from the private health insurers and patients (Devers, Brewster, & Casalino, 2003). Readmissions can be prevented by ensuring that the patients attend post-acute office visits in routine cases after they have been discharged. Provision of resources to people that are guaranteed to taking proper release steps can also be a step in keeping readmission from occurring (Devers, Brewster, & Casalino, 2003). Revamping of the cost strategy especially on energy can also be made ensuring that the health care go green therefore impacting on the environment positively and also save the hospitals bottom line.

References

Devers, K., Brewster, L., & Casalino, L. (2003). Changes in Hospital Competitive Strategy: A New Medical Arms Race?. Health Services Research, 38(1p2), 447-469. http://dx.doi.org/10.1111/1475-6773.00124

Henry, J. (2012). Health Care Costs: A Primer - Report. Kff.org. Retrieved 12 March 2017, from http://kff.org/report-section/health-care-costs-a-primer-2012-report/