Economics and Healthcare

BY Tiffany Thomas RN

There are many factors that are influencing healthcare costs, including demographics, technology, and chronic illness. To begin with, a major demographic change includes the aging population. The majority of older adults receive Medicaid and Medicare. As the population continues to age the more money the government spends on healthcare. As a result, the government is having difficulty compensating for the healthcare needs of the growing aging population. Therefore, the government is changing the way in which they are reimbursing hospitals. For example, starting in 2013 a portion of hospitals’ DRG reimbursement will be based on patient satisfaction. In addition, technology also increase healthcare cost. For example, electronic charting cost much more than paper charting. Electronic charting requires more equipment, training, and staff. Last but not least, chronic medical conditions increase healthcare cost. Chronic disease accounted for 75% of total health care spending in 2003 (Stanhope & Lancaster, 2008). Thus, demographics, technology, chronic illness and many other factors are influencing the rise in healthcare cost. Not to mention, the uninsured people that hospitals has to treat without receiving any payment.

Stanhope, M, & Lancaster, J. (2008). Public health nursing, population-centered health care in the community. St.Louis, Missouri: Mosby Inc., an affiliate of Elsevier Inc.

Saver, Cynthia. (2011). HCAHPS: How the OR’s scores affect your whole organization. OR Manager, 27(4), 1-5.

NOTE: This blog post reflects the work of a Registered Nurse with minor editing by Shirley Comer RN and was completed as a class assignment. The content of this blog is for informational purposes only. Before beginning or changing a treatment or lifestyle regime you should consult your primary health care provider.