The History of Healthcare Economics
Stephanie Creech
HCS/440
December 12, 2011
Bert Munoz

The History of Healthcare Economics
When healthcare first began just about anyone could practice medicine, and it stayed this way in the United States until 1806 when the first licensing laws were passed in New York (Wellness Directory of Minnesota, 2003). Since then healthcare has evolved; changes in technology, organization, and payment structures just to name a few are constant. Keeping up with them, and understanding how they affect healthcare economics can be challenging to say the least. Although, there are many factors that contributed to these changes perhaps the biggest factor was the technological advances and changes in the quality of medical care. To be able to prosper now, and plan the future one must study the past. Healthcare mangers must fully understand the history and flow of funds in healthcare economics to be effective in their positions. Although, it seems obvious it is important to remember that the driving force behind any organization including healthcare is money. Money is vital because without it the organization would have to close. “Formalized medicine in America began in the 1800’s and continued until the 1930’s. This helped to establish the medical profession through both expanded duties and formal education” (Wasley, 2011para4). When doctors or physicians first began some would barter with their less fortunate patients to ensure payment for services rendered. Doctors that would have taken food, livestock or even just a partial payment when the medical profession began are now highly paid physicians or technicians. “In 1929 81% of expenditures came directly from the individuals out of pocket payments and 11% came from other sources the government and third party payers” (Getzen & Moore, 2007 chapter1 para22). Today