Demographics: The Aging Population
HCS/490
July 8, 2013
Sandra Asbury

As the population ages, it increases the need for more healthcare service as well as the staff to administer those services. Hospitals and other healthcare facilities are constantly hiring for what’s to come, making nursing one of the fastest growing occupations. Health Affairs did an article and study called The Effects of Aging and Population Growth on Health Care Costs. This study was called Data Watch and the purpose of this was to determine the link between the rising personal health care costs and the population growth as well as the aging of the population. The results were recorded from 1975 until 1990 and then projected for the years 1990 through 2005. Some of the findings were as follows:
“All of the calculations described assume that the relative expense of treating each age group, observed in 1987, will remain constant over time. In fact, as noted earlier, historical data for 1977 and 1987 suggest that there have been small changes in the relative expense of the care rendered to each age group. Comparison of the relative levels of spending in each age group between 1977 and 1987 illustrates that spending on those age sixty-five and older seemed to grow more rapidly than overall health spending in both the physician and hospital sectors. Spending on those under age nineteen also appeared to grow more rapidly than total spending in the hospital sector and less rapidly than total spending in the physician sector; spending on those ages nineteen to sixty-four appeared to grow more slowly than overall health spending. These changes probably can be explained by the ongoing development of new medical technology and the disproportionately heavy use of new advances among the elderly and newborns. If technological advances continue to selectively increase the cost of caring for the elderly and the young in the future, we would expect the current gaps in spending to continue to widen between now and 2000. Relative health spending by age group may also continue to change because of decreases in age-specific mortality rates. We therefore offer an alternative calculation of the effects of aging and population growth on costs, which assumes that the relative expense of care for those over age sixty-five and under age nineteen will continue to increase in the future at the rates observed between 1977 and 1987.”
The Workforce Analysis Branch of the Bureau of Health Professions (BHPr), Health Resources and Services Administration (HRSA), commissioned a report synthesizing the literature on one set of factors that will have a profound impact on the future health workforce—changing demographics—and discussing its implications for the health workforce. In addition, BHPr commissioned the update of two requirements forecasting models: the Physician Aggregate Requirements Model (PARM) and the Nursing Demand Model (NDM). The major findings of the literature and these two demand models are the following:

Population Aging

• If health care consumption patterns and physician productivity remained constant over time, the aging population would increase the demand for physicians per thousand population from 2.8 in 2000 to 3.1 in 2020. Demand for full-time-equivalent (FTE) registered nurses per thousand populations would increase from 7 to 7.5 during this same period.

• In 2000, physicians spent an estimated 32 percent of patient care hours providing services to the age 65 and older population. If current consumption patterns continue, this percentage could increase to 39 percent by 2020.

• The aging of the health workforce raises concerns that many health professionals will retire about the same time that demand for their services is increasing. Furthermore, the declining proportion of the population age 18 to 30 raises concerns regarding the ability to attract a sufficient number of new health workers.

• The rise in health care expenditures associated with the rapid increase in the elderly population will likely place additional pressures on the Medicaid and Medicare programs, as well as private insurers, to control health care costs. Such measures would likely decrease the demand for and supply of health professionals.

• The aging population could result in rising average patient acuity, which could in turn require higher nurse and physician staffing levels. One countervailing trend is that tomorrow’s elderly might have lower disability rates than today’s elderly, controlling for age, because of improvements in economic resources, education levels, lifestyle, public health, and medical technology.

As time goes on and individuals age, so does health care and the services provide. Technology is always changing which can cause the cost of health care to increase. Depending on the demographical area, the health care costs might be different as well. In an area that is more modern with up to date technology and equipment you might pay more for the services rendered. The older an individual gets, the more likely they are to use health care services more. This could include frequent trips to their physician or hospital as well as long term care services.
The aging population is more likely to use prescription medications to keep them healthier. Name brand prescriptions can cost more out of pocket rather than using a generic of the same formula. Depending on their needs, they may require home health care services. Equipment just to help them function on a day to day basis, such as walkers, canes or even wheelchairs may be needed. Depending on the area, there are many home health care companies that supply this equipment and it can often be covered by the patient’s insurance.
Certain demographical areas may have more of an aging population than others. Various cities in Florida are known for this since a lot of the aging population goes there for retirement. Other areas, such as New York City have more of a younger generation rather than an aging population. These areas that are known for the aging population should market various services that might be needed such as home health care companies, pharmacies and suppliers for equipment. Also, long term and short term care facilities. By doing this, they also eventually will attract that younger generation as they grow older and the need for these services arise in their life.
The individuals, communities and society as a whole can really do their research to help with these challenges. Various marketing techniques are also very useful in helping to provide the right types of resources to the aging population based on their needs.

References

The Effects Of Aging And Population Growth On Health Care Costs. (n.d.). Retrieved from http://content.healthaffairs.org/content/12/1/119.full.pdf

Changing Demographics. (n.d.). Retrieved from http://www.nachc.org

Aging Population a Boon for Healthcare Workers. (n.d.). Retrieved from http://www.usatoday.com