Economics of the Health Care Industry

The double problem society watches in the medical industry is cost and access. Firstly, the cost of receiving health care is very high, which is increasing every day. This is mainly due to the combination of high cost and an increase in the number of services offered to the community. Another problem involves access to healthcare. Americans are restricted access to healthcare, or they do not have any access at all. Many efforts have been paid to reform this, but there are many people who can not take care yet.

From an economic point of view, the healthcare industry has been proved to be a recession industry, as the demand and demand for community health care services is sustained. The billions of medical industries in the United States have contributed greatly to the stability of the national economy. That is why medical reform failed. Like Canada, employment and income generation is a major problem in dealing with US healthcare. However, subsidies are effective in Canadian health care systems, but in the United States certain US states, such as measuring the cost effectiveness of services from a service price point of view, mimic certain characteristics of subsidies . time

This research aims to analyze the economic factors of the hospital industry. This work will take "hospital" industry and its economic activity as part of the healthcare industry. This research provides a detailed analysis of the economic characteristics of the hospital industry, analysis by Porter's five powers, key economic and environmental changes, and drivers of related changes. From small medical centers in Los Angeles, California, to highly refined super specialty hospitals, there are many hospitals with low profitability and profitability. "Hospital" means an organization whose main purpose or function is to provide medical care to patients with various types of illness.

While economic, social and behavioral forces affecting the development of healthcare systems, medical technology has brought dramatic changes in healthcare, it also increased the cost of healthcare . It affects economics, organizations, industries and patients, beneficiaries of insurance, and social and government policies. Medical technology increases medical costs on the one hand and improves diagnosis and treatment on the other. Using current medical technology, we will be able to develop new products and services that will raise standards of service provided by medical institutions. As new technologies evolve, they introduce new ethical and regulatory issues. Problems in technology advance will bring more challenges and will affect the development of medical services to enter the new century (Etheredge, Jones, & Lewin, 1996).