Economic Issues Affecting Healthcare

Economic Issues Affecting Healthcare

Factors affecting the healthcare system are several, including social and economic factors. Economic factors refer to the financial issue that directly or indirectly influences the healthcare system. Due to the newly implemented laws, the healthcare system has experienced dormant revenue growth over the past years. This paper will explore more on three economic factors and their implication in healthcare.

Inadequate Funding to the Healthcare Facilities

Healthcare funds act as a source of income for the facilities without which the efficiency of healthcare delivery is influenced. Reduced or inadequate funds affect the healthcare providers, patients, and the community at large (Kaye et al., 2021). The healthcare facilities get funds from the government and private organizations. Currently, with newly enacted laws, there is reduced hospital funding, probably due to the rising cost of healthcare. Without enough funds, the hospitals cannot hire enough staff, leading to a shortage of staff. The healthcare providers are, therefore, forced to overwork and end up having burnout, affecting the quality of healthcare service.

Increased Uninsured Families

Employment is still an issue in most parts of the world, and the majority of people do not have stable jobs. Some people have even lost their company or employer-funded healthcare insurance coverage. As a result, most families cannot afford to pay for health insurance coverage on their own (Gangopadhyaya & Garrett, 2020). The families are, therefore, more prone to diseases and even death because they cannot afford the healthcare services through their pockets. This will remain an issue in the future because, with the increasing population, there will be no job opportunities, and the rate of unemployment will increase. For example, patients with chronic illnesses such as cancer cannot afford the services without the help of insurance covers, and they end up dying due to the cost of managing cancer.

Advanced Pharmaceutical Companies

Due to the advancing technology and development in medical research, pharmaceutical companies have taken control of healthcare. As a result, the cost of accessing healthcare services and drug subscriptions has increased (Wood et al., 2017). Additionally, the pharmaceutical companies have become greedy, hiking the prices of drugs and straining the Medicaid and Medicare services.

References

Gangopadhyaya, A., & Garrett, A. B. (2020). Unemployment, health insurance, and the COVID-19 recession. Health Insurance, and the COVID-19 Recession (April 1, 2020). https://dx.doi.org/10.2139/ssrn.3568489

Kaye, A. D., Okeagu, C. N., Pham, A. D., Silva, R. A., Hurley, J. J., Arron, B. L., … & Cornett, E. M. (2021). The economic impact of COVID-19 pandemic on healthcare facilities and systems: International perspectives. Best Practice & Research Clinical Anaesthesiology, 35(3), 293-306. https://doi.org/10.1016/j.bpa.2020.11.009

Wood, S. F., Podrasky, J., McMonagle, M. A., Raveendran, J., Bysshe, T., Hogenmiller, A., & Fugh-Berman, A. (2017). Influence of pharmaceutical marketing on Medicare prescriptions in the District of Columbia. PloS one, 12(10), e0186060. https://doi.org/10.1371/journal.pone.0186060

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Examine at least three current and future economic issues confronting today’s healthcare system.

Economic Issues Affecting Healthcare

• Analyze the significant implications of the issues in question for market efficiency of the health care system.
• Provide specific examples to support your rationale from readings throughout your program or peer-reviewed journal articles.