...economy is healthcare system. The majority countries the healthcare system in the United States is not public, meaning that the state does not provide free or despicable healthcare services. However other countries Canada and Great Britain, for example, the government funds healthcare providers through taxes. The United States being a profoundly capitalistic country for another route and passed the burden of healthcare spending on private consumers as well as other institutions such as employers, insurers, etc. Everything would have been fine unless statistics showed dramatic increases in healthcare spending over the years. American healthcare system is the most expensive one in the world; in 2004 America spent about 16% of nation’s Gross Domestic Product on healthcare services, which is approximately $1.9 trillion (Economist, 2006). Furthermore, annual spending continues to grow 10 to 15 percent every year (Davis et al., 2003), which is faster than the national inflation growth rate. However, healthcare spending in the United States requires abrupt analysis and new policy solutions; or else it would become an uncontrollable fund-consuming machine. American economists are now trying to understand the nature of the growing healthcare costs, and to analyze its impact on the overall nation’s economy. Health and Human Services Department identified the major trends that lead to the rapid growth of healthcare spending. These include (but are not limited to) “changes in healthcare utilization...
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...issues that is widely discussed and debated concerning the United States economy is healthcare system. Unlike in the majority of developed and developing countries, the healthcare system in the United States is not public, meaning that the state does not provide free or cheap healthcare services. In Canada or Great Britain, for example, the government funds healthcare providers through taxes, and such a system is called social. The United States, on the other hand, being a profoundly capitalistic country, opted for another route and passed the burden of healthcare spending on private consumers as well as other institutions such as employers, insurers, etc. Everything would have been fine unless statistics showed dramatic increases in healthcare spending over the years. American healthcare system is the most expensive one in the world; in 2004 America spent about 16% of nation’s Gross Domestic Product on healthcare services, which is approximately $1.9 trillion (Economist, 2006). Furthermore, annual spending continues to grow 10 to 15 percent every year (Davis et al., 2003), which is faster than the national inflation growth rate. Thus, we can see that healthcare spending in the United States requires immediate analysis and new policy solutions, otherwise it would become an uncontrollable fund-consuming machine. American economists are now trying to understand the nature of the growing healthcare costs, and to analyze its impact on the overall nation’s economy. Health and Human Services...
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...finance and provide all healthcare.” Given this common view, whilst making some reference to methods of providing and financing healthcare in other European countries, discuss whether government finance and provision of healthcare is likely to maximise welfare? Healthcare is categorised as a merit good as consuming it provides benefits to society and to the individual consumer. For instance, immunisation against a contagious disease gives us protection and results in a private benefit as well as an external one, to those who are protected from catching the disease from those who are inoculated. However, few would want inoculation only to protect others. Therefore, the demand for healthcare will be less than the socially efficient quantity. Having great advances in new technologies, treatments and drugs improves our health service’s ability to supply, as well as encouraging demand to such an extent that demand substantially exceeds supply. Unfortunately, this creates long waiting lists and therefore a scarcity of beds available for treatment. If we privatised the NHS, it would allow prices to increase to show how much it really costs to supply. But obviously, this would be very controversial and cause immigration rates to drop. This could be seen as a bad thing for some, due to the fact that many are very productive and willing to work for low wages, whilst others would argue that it is a good thing for the British workforce. However, rising costs have forced a re-think on...
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...States were not as hopeful as pervious expansions. Because of the current recession, the gross domestic product or GDP is not as high as past growth. The GDP beginning in 2008 was only 2.5% with a continual growth of 2% annually. This is lower than the previous expansion ending in 2007 that was 4%. This affects individual consumers, public sector spending, military spending, and government spending. (Reddy, 2013) During the Obama administration, recession recovery was slowly on the rise. Consumer spending rose 3.2% but cutback on saving money. Congress also passed a legislation to alter budgets cuts in air traffic control. The effects of this law cut the budget of the Federal Aviation Administration but allowed the company to cut costs in whatever areas necessary. Military spending also decreased since the pervious expansion. It fell 11.5% and reduced payroll raises of Soldiers globally serving the country. (Reddy, 2013) The current unemployment rate in the...
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...Universal healthcare coverage in Indonesia One year on January 2015 Written and produced by www.eiu.com/healthcare an Economist Intelligence Unit business healthcare Universal healthcare coverage in Indonesia— One year on Contents Abbreviations 5 Introduction 6 Indonesia’s version of Universal Healthcare: What is the JKN? What about the KIS? 8 Challenges with Indonesia’s version of Universal Healthcare 12 Teething problems—A short-term affair? 12 Balancing the budget—Fiscal sustainability 13 Chronic undersupply—Another barrier to providing truly comprehensive services 15 How should the healthcare industry prepare in the short to medium term? 17 Healthcare service providers: Pockets of opportunity 17 Med-tech and pharma: Spotting opportunities and tailoring product offerings 19 © The Economist Intelligence Unit Limited 2015 1 Universal healthcare coverage in Indonesia— One year on Foreword Ivy Teh, Managing Director at Clearstate, an Economist Intelligence Unit business. 2014 marked a watershed year for Indonesia, the world’s fourth populous country, with the election of the popular reformist politician, Mr. Joko Widodo, as its president. The year also saw the rollout of the long-delayed universal healthcare scheme (UHC). Indonesia intends to phase-in the world’s largest single player health care insurance program from 2014 to 2019, reaching universal coverage for all Indonesians...
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...registration processes of pharmaceuticals in Singapore (Gross and Weintraub 2005). • From manufacturing to packaging of drugs and healthcare products, Watsons has to follow the rules and regulations implemented. Importing Food Products • The Agri-Food and Veterinary Authority of Singapore (AVA) and Food Control Department are the major governing bodies of Food trade. The exports to Singapore are primarily controlled through regulations imposed on the importers”. • For importing or manufacturing of food products, Watsons has to adhere to the regulations. Economic Factors Higher Inflation Rates • Inflation in Singapore is likely to remain high before easing in mid-2012 as the economy slows. The inflation will average above 5% for the rest of 2011 and may fall to around 4% in the first half of 2012. It may ease further to 2% in the second half of 2012 (Xinhua 2011). • Inflation rates will affect the prices of goods sold. Hence, it will affect Watsons’ sales if customers are price sensitive. GDP Growth • Singapore’s GDP growth is expected to be 5.5% in 2012. Economists have upgraded their outlook for Singapore’s economic growth to 6.2% for the full-year 2011 (Singapore builder 2011). • The economy is expected to remain on a sustainable growth path in 2012-16, when real GDP is forecast to grow by an average annual rate of 5% (The Economist Intelligence Unit Limited 2011). Retail Rental Prices • Singapore’s retail rental remains unchanged for prime and suburban...
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...Abstract Whether you are an economists or the average consumer, Health Care costs and spending seems to always be a hot topic. From my initial research I found that Health Care costs are steadily rising both in the private and public sectors. From what I have read I believe some sort of Health Care reform is required. There are vast numbers of people suffering and even dying because the cost of Health Care is too expensive. Unfortunately people skip doctor appointments and ignore ailments, just because they cannot afford it and it some cases people are paying the ultimate price. I’d like to look a little deeper into the Pros and Cons of Private and Public Healthcare and delve a little into some of the Health Care reform Bills that are in play or will be implemented in the near future. Specifically I want to look at Obamacare, as I hear it in the news, but do not know what impacts it has to the economy, good or bad. List of Figures Figure 1 6 Figure 2 6 Figure 3 7 Figure 4 7 Health Care Reform In recent years, a fair amount of attention has been geared towards Health Care. There has been a number of Economists that have voiced concern that rising health care spending could hurt the economy and lower employment. A December 2004 survey of CEOs found that employee health care costs are the greatest cost concern of America’s business leaders. (via aspe.hhs.gov). Due to the ever rising cost of healthcare, I found that approximately 53 Million...
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...Week 1 From the first e-Activity, determine the most commonly used population and individual measures used in providing healthcare today. Examine the primary impact that these measures exert on the choices that consumers make in order to address their own healthcare needs. Justify your response. Measuring health is used commonly across populations and individual measures used in providing healthcare today. Tracking health of the population is necessary to trend and control cost. The broad health account requires data on medical care expenditures and on the benefits derived, which are what patients and collectively, society seek to purchase. The output side of the account is quantified in terms represented by the population's health. The U.S. spent more than $2 trillion dollars on health care, or $7,026 per capita, in 2006. This is about twice as much per capita as countries such as Australia, Canada, the United Kingdom, Germany and Japan. Not all of the increases in health spending are necessarily bad. Some health economists note that as countries become wealthier, they choose to spend more on health care. Some analysts, such as David Cutler of Harvard, argue that most of the additional expenditure is a worthy investment which pays dividends in terms of decreased mortality and improved quality of life. Also, while health expenditures may be burdensome to some, they provide income to others. Hospitals and health care facilities are the economic engines of many communities...
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...- profit hospitals make up approximately 70 % of the nation’s hospitals, the remaining are for-profit hospitals and government hospitals such as the VA. There are also “other” types of facility type providers such as surgicenters, hospice, and specialty clinics. Individual licensed physicians provide care in such facilities or in private practices. U.S. healthcare costs exceed those of other countries; in 2009 2.5 trillion dollars was spent. This is 17.3% of the gross domestic product. Health Insurance costs are rising faster than wages or inflation, and medical causes were cited by about half of bankruptcy filers in the U.S. The Congressional Budget Office has found that "about half of all growth in health care spending in the past several decades was associated with changes in medical care made possible by advances in technology." Other factors included higher income levels, changes in insurance coverage, and rising prices. Economist Hans Sennholz has argued that the Medicare and Medicaid programs may be the main reason for rising health care costs in the U.S. CMS believes that 20-30% of healthcare spending is a waste due to overtreatment, failure to coordinate care and fraud. Hospitals and physicians are generally funded by payments from patients and insurance plans. Around 85% of Americans have some form of health insurance, either through employers, privately purchased or provided by government programs (medicare/medicaid). “Charity Care” for those...
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...care spending over the past twenty years is linked to modifiable population risk factors such as obesity and stress. Rising disease prevalence and new medical treatments account for nearly two-thirds of the rise in spending. To be effective, reforms should focus on health promotion, public health interventions, and the cost-effective use of medical care. Disease prevention/health promotion approaches are key to slowing the rise in health care spending (Thorpe, Kenneth 2014). Over the past five years the cost of health insurance has risen 54 percent. This persistent rise has recently been attributed to the low out-of-pocket costs paid by consumers. Being oblivious to not knowing the full costs associated with health care, consumers demand more and “overuse” it (moral hazard). The growth in spending has also been linked to the rising use of prescription drugs and new medical innovations and treatments. Many others believe the rise can be traced to the lack of competition in the health care marketplace and have proposed new approaches for health plans to compete on price and outcomes. Economists thinking about rising health care spending note that there are only two approaches for slowing its growth: reduce spending on high-cost medical care that produces no benefits, and reduce spending on high-cost care that yields some health benefits but at even higher costs. Along these lines, some have proposed that we need to “ration rationally” to slow spending growth. Although this may...
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...being analyzed on. Political The effort of the Vietnam’s government plays an important role in determining the healthcare industry performance. With the underdevelopment of the healthcare in Vietnam, the government of Vietnam prioritize government spending on health care at the same time encouraged foreign investor invest in the Vietnam Healthcare industry with several ways such as through Private Partnerships (PPP), joint venture with local players in Vietnam. On top of that, investors enjoy a preferential corporate income tax of 10 per cent instead of the regular 25 per cent. In relation to the tax exemptions, exception of tax will be granted in the first four years and in the following nine years there will be 50 per cent tax break (HKTDC, 2015). Besides, investors are allowed to operate a 100 per cent owned hospital with the elimination of restricted policies such as foreign qualified doctors are free to practice and healthcare plans are allowed to offer (Austrade, 2015). This plays a crucial part to Price Court whether the decision of entering Vietnam with joint venture or wholly owned since the cost incurred will have a large differential under the government policies. Economic Table 1 With the growing population of 87 million, 13rd most populous country in the world hence there is no doubt that Vietnam potentially be the destination for healthcare industry investments. Over the past years, Vietnam has become one of the fastest growing economies in Asia with promising...
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...an individual company level as well. The article begins with the announcement from the White House stating the new forecast of economic growth will be lower than previously forecasted. Their new forecast included lower GDP, higher unemployment rates, higher consumer prices, higher chances of a recession, and however, improved rates of inflation. Economists’ main concern is businesses and consumers will decrease the amounts they are spending and investing (Executive 1). This will in turn hinder the financial growth of the economy. Fifteen different printing companies or printing manufacturers commented on their views of the new White House forecast and their plan for the upcoming year. Some companies, like Apex Color and Lippmann Printing and Graphics, agreed the print industry will struggle without a “healthy economy” (Executive 2). According to the responses, an unhealthy economy is attributed to the country’s poor housing and mortgage situation, rising fuel costs, rising energy costs, rising paper costs and rising healthcare costs (Executive 2, 6). President and CEO of Ennis also mentioned that companies who struggle with their cost structure will continue to struggle in 2008 opposed to companies who are “financially stable” (Executive 2). Some organizations, Continental Datalabel for example, agreed that past growth and GDP will be crucial for success in the industry for the year 2008 (Executive 2). One company credits its past service, quality and versatility of the equipment...
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...Implications of Health Economics Concepts for health Care Marcus Bright Strayer University Health Economics HSA 510 Dr. Jeff Kaluyu October 27, 2014 Abstract Income Inequality and Rising Health-Care Costs in the United States shows that health costs are the biggest driver of income inequality. This reason has made health care economics to go through multiple renovations leading from money which is the substance of health care economics and that has become vital to economists, policymakers, researchers, and organizational leaders. Today, most employers pay their workers a combination of wages and benefits, the most important of which is health coverage. This too has caused employer’s to hold back on salary increases to keep total compensation costs to cover the high cost of health insurance increases. In health care economics, the gross domestic product (GDP) is of paramount importance and in evaluation of, there is a remarkable rise in the GDP from 5.2% in the 1960’s to 16.2% in 2008, and an anticipation of 19% or more by 2019. It is based on those ongoing increases that this paper will reflect on the concepts that have impacted the world of health care economics in the US. Health Care Professionals and Understanding the Discipline of Health Economics The economics of health care methodologies for funding have continuously been changing since the 1800s. This started with the founding of the American Medical Association in 1847, which promoted scientific...
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...Prevention: The New Health Focus Because of rising concerns regarding an increase in unhealthy American lifestyles over the last thirty years, attention is being brought to the benefits of a focus on wellness rather than on disease. Proponents of the advocacy for better health practices have long been offering first-string solutions for many of America's crippling health concerns; however, even though there have been significant inroads, their voice has largely gone unheeded. Currently, as America steps into the unknown territory of nationwide health reform, corporate plans to encourage their employees toward better health through incentive programs, increased government subsidies and resources, and involvement by non-profits to reward healthy practices will help shift the paradigm from treatment to prevention. This shift from a disempowered place to a positive focus offers not only solutions to unhealthy trends in America, but also injects a 'can do' attitude into a beleaguered nation. A blog from The Economist in 2013 presents the problem of declining health in America in a succinctly stark light. They indicate that even though our "life expectancy rose from 75.2 years in 1990 to 78.2 years in 2010, this seemingly good news actually masks two problems. First, though women live longer than men, their life expectancy is rising more slowly. Secondly, both sexes have a lower life expectancy than their peers in other rich countries, a gulf that has widened since the 1980s."...
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...Health Care Spending HCS 440 Economics: The Financing of Healthcare Class Group: BSEW1GQMZ5 University of Phoenix Online Instructor: Geoffrey J. Suszkowski, Ph.D., LFHIMSS 05/11/2015 Health Care Spending “In 2013 U.S. health care spending increased 3.6 percent to reach $2.9 trillion, or $9,255 per person, the fifth consecutive year of slow growth in the range of 3.6 percent and 4.1 percent. The share of the economy devoted to health spending has remained at 17.4 percent since 2009 as health spending and the Gross Domestic Product increased at similar rates for 2010 - 2013”("National Health Expenditures 2013 Highlights," 2013). The cost of health care spending greatly affects the way that individuals budget their spending. It is important the economy can adjust accordingly to individuals about whether health care spending is too much or not enough. Current Level of National Healthcare Spending The topic of healthcare spending in the United States is a controversial one, and most often, the populations' opinions doesn't always agree with those of policymakers. Getting health care spending under control is vital to the economic health of the government and the people of the United States. What makes healthcare expenditures so disgraceful is the large amount of money the government spends on healthcare each year versus the number of people without health care. The amount of money the U.S. government spends on health care each year doubles that...
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