Background Evolution of Health Care Economics

Lauren Michaud

HCS/440

Richard Oestmann

September 12, 2012

History and Progression of Healthcare Economics

Health care economics features drastically altered over the years. That makes up for one sixth of yankee budget (Johnson, 2009). Medical economics has drastically transformed partly due to new advances in technology over the years. Money is the aspect of healthcare economics. Cash drives economics and makes up health care and how far it might go. Economics will carry on and change and financial experts who have even more education upon health care economical advances will be beneficial to keep with changes in economics.

Economics is targeted on market. Market is like the purchaser buys a product or service and the owner gains the money from the buyer. Economics is a science that deals with the production, distribution, and consumption of goods and providers or the materials welfare of human kind (Merriam-Webster, 2012). In the past individuals covered their own medical bills and insurance or perhaps government corporations were hard to find. In 2012 we now have services just like Medicare, Medical planning, and many insurance companies through employers or private companies. The stream of money has changed considerably from the early years of health care. For example , in 1929, 81% of medical expenditures originated from individual " out of pocket, ” and only 19% came from federal government or 3rd party organizations (Getzen, 2007). The flow of funds in 2007 reversed and 11% of medical expenditures came from " out of pocket” and 89% came from other organizations or insurance (Getzen, 2007).

Not only was just the percentage of people investing in healthcare but the transactions of flowing cash were totally different. Today exchanges of solutions are done with money via insurance, out of pocket costs, or government cash. In 1900 some doctors would consider exchange of eggs or perhaps flour for health care providers (Getzen, 2007). They nearly acted as vendors in order to...

References: Meeks, L., (2009). Q& A: Why medical care 's monetary impact issues. Retrieved via http://www.usatoday.com/news/health/2009-06-19-health-economy_N.htm

Getzen, T. Moore, J. (2007). Wiley Pathways Health Care Economics (1st education. ). Ruben Wiley & Sons.

Merriam-Webster (2012) Definition of Economics. Encyclopedia Britannica Company.

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