Analysing financial and economic issues in the health care industry.
As a health care manager, you must be able to analyze financial and economic issues in the health care industry. In this assignment, you will demonstrate problem-solving skills as you choose an issue and address the financial impact in your analysis.
Preparing for the Assignment:
Select 1 current financial or economic issue in the health care industry that you want to address.
Assignment Directions
Write a 700- to 1,050-word paper about the financial or economic issue you selected in which you:
Analyze the financial impact of this issue on the health care industry. Consider the following:
What are the economic trends of the health care payment system?
What are the supply and demand challenges for health care services?
Why are costs increasing in the health care system?
What regulatory issues are affecting, or will affect, the health care industry?
Recommend at least 1 strategy to address the issue.
Consider current strategies being used or presented for improving the issue.
Discuss what you believe would be the outcome of these recommendations, if implemented.
Sample Answer
Financial Impact of Rising Prescription Drug Costs in the United States
Economic Trends of the Healthcare Payment System
The US healthcare payment system is complex and fragmented, with a mix of public and private payers. Public payers, such as Medicare and Medicaid, account for about half of all healthcare spending, while private payers, such as employer-sponsored health insurance and individual health insurance, account for the other half.
The economic trends of the healthcare payment system are largely driven by the rising cost of healthcare services. The cost of healthcare has been rising faster than inflation for many years, and this trend is expected to continue in the future.