For several years, the United States healthcare costs have been on the increase and strategies to stem the increase have become the main priority in policy making process. The government, consumers, and employers have stepped up their struggle to keep in track with the rising costs of healthcare. This rise in costs of patient healthcare has great financial implications to individuals, organizations and the government. The affected parties have changed their normal ways of life and adopted a different strategy, which will reduce expenses in healthcare services.
Hospitals have become expensive, ambulatory services cost excessively higher than they used to cost years back. Due to the increased cost of patient care, the government spending on healthcare was almost thrice as much in 2008 than in 1990 where the spending in 1990 were USD 714 billion and USD 2. 3 trillion in 2008 (Kimbuende, Ranji, Lundy, & Salganicoff, 2010). This trend in the rise of patient care costs has been in the increase since 1980.
The government spending in patient health care in1980 was only USD 253 and since then, the cost has skyrocketed as the economy continues to get worse. The rise of patient healthcare costs resulted to the government using 16. 2 percent of the total national gross domestic product (GDP) in 1998 (Kimbuende, Ranji, Lundy, & Salganicoff, 2010). These figures indicate that the rise in patient care costs has not only affected the common citizen but also the government. The common citizen has not been spared either; there is great strain on the financing system used to fund patient healthcare.
The increase in patient healthcare costs compounded with the general economic slump and the ever increasing federal deficit has led to the much strain on the credit cards of most Americans (Weatherly, 2004). The credit crunch has spread all over America and the demand for goods that one time enjoyed great sales has significantly reduced. Public insurance programs like Medicaid and Medicare and health insurance coverage sponsored by private employers have all been strained due to increase in the cost of patient healthcare (Weatherly, 2004).
The stress inflicted on the patient healthcare financing ends up in individual workers and employers. Apart from the government’s direct painful spending on the increased patient healthcare costs, the government through programs such as the Medicaid and Medicare has a significant healthcare budget although their expansion is relatively lower compared with the private insurance (Teisberg, & Porter, 2006). Enrolment into the Medicaid and Medicare programs has tolled as the effect of economic recession continue to be felt.
This effect may increase the overall spending in patient healthcare in Medicaid as well as that of Medicare which are owned by the government. Perception in the context of a healthcare organization The increase patient healthcare costs does not erupt all over sudden. Critical observation confirms that the effect of increased patient health care costs emanates from the government regulations and several other interventions that the government has applied to improve the economy (Weatherly, 2004).
The government has increasingly adopted new medical technologies in healthcare organizations resulting into an overall increase in patient healthcare spending. The increased incidents of chronic diseases in healthcare organizations have also resulted to the increase in patient healthcare costs in the recent past (Teisberg, & Porter, 2006). The increase in cost has in part been caused by a tremendously increase in chronic diseases which need hospitalization. References Kimbuende, E. , Ranji, U. , Lundy, J. , & Salganicoff, A.
(2010). U. S HealthCare costs. The Henry Kaiser Family Foundation. Retrieved May 24, 2010 from: http://www. kaiseredu. org/topics_im. asp? imID=1&parentID=61&id=358 Teisberg, E. , & Porter, M. (2006). Redefining Health Care: Creating Value-Based Competition on Results. Massachusetts, Harvard Business Press. Weatherly, L. (2004). The Rising Cost of Health care: Strategies and Societal Considerations for Employers. Retrieved May 24, 2010, from http://findarticles. com/p/articles/mi_m3495/is_9_49/ai_n6206615/