Macroeconomics of Healthcare
Richmond A. Ruelos
California College Of San Diego
Healthcare Economics And Policy HCA432
April 16, 2013
In a conceptual analogy of the healthcare economy and of our body system, in order for a human body to function, from the smallest cell down to the largest system of our body, regardless of their size and shape, they must work in perfect harmony, without flaws or any type of interruptions. If problems occur, for example simple wounds, we do our best to fix it, using treatment method as simple as a band-aid, to prevent further infection. Likewise, if that problem does not ...view middle of the document...
The economic package expenditures of the US healthcare industry, amounts to a staggering $2.5 trillion, which equates to 17.5% of our GDP; with these amounts, it is distributed to different sectors and sub-sectors of the healthcare system, which includes medical providers, hospitals, outpatient centers, Veterans Affairs, clinics, and ancillary services [ (Johnson, 2009) ]. Adding to this point, “ It also counts out-of-pocket payments by consumers for health insurance premiums, deductibles and co-payments, along with costs not covered by insurance and medical sundries” [ (Johnson, 2009) ]. However, although it is known as the largest consumption of GDP in the US, still, it is not quite enough to sustain the overall needs of the healthcare industry. Furthermore, the cost of healthcare increases at an annual rate of 7%, with that pointed-out, if this continues, medical programs, for example Medicare, will face bankruptcy in a span of nine years and increase burden to the economy, additional $4 trillion deficit in the economy, healthcare’s burden in 10 years [ (Callahan, 2013) ]. Failure to make drastic move to stabilize the current condition of healthcare industry, it will, certainly, bring more catastrophic destabilization to the economy itself. On the other note, in order to conform to what the health care was designed for, Janecka emphasizes that, “ Health care, designed to reestablish the health of a large societal system, must seamlessly incorporate all of its subsystems arranged in ever-expanding circles of influence” [ (Janecka, 2009) ]. In comparison, just...