Macroeconomic Condition and Issues Facing Healthcare – Health System Example

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"Macroeconomic Condition and Issues Facing Healthcare" is a wonderful example of a paper on the health system. Health economic has a tremendous influence on the value, efficacy, behavior, and effectiveness of the services administered by health care (Maynard, Jones, Mullahy, Briggs, 2012, P. 1-11). From research carried out by the economist, it is notable that health care is faced with macroeconomic conditions and issues at the present time and may even extend to the future. Some of the conditions and issues that are being faced by healthcare areas deliberated in the following text. First of all, health care problems and issues have mostly been affected by the letdown of health care markets.

However, these issues are not only raised up by the failure of the markets in the health care field but, they are mainly caused by alterations enacted on the market from different directions. The most radical alteration is the Federal tax subsidies and the payments through third-party system programs that prevent the customers from markets and price forces (Bardey, Canta, Lozachmeur, 2012, P. 691-704). For instance, all health care practitioners i. e.

doctors, pharmaceuticals, and health insurance companies, work in comprehensively controlled, and enormously subsidized firms full of operational distortion. They all have one focus of taking and treating patients well. However, they work reasonably according to the distortion created by economic incentives hence resulting in incompetence. In addition, to the tax problem, is the exclusion of the employer’ s providing the insurance from paying federal tax. The policy hides the real cost of insurance from the clients covered by it as it undermines the health care markets and thus encouraging more expensive care and costly insurance (Daysal, 2012, P.

545-63).   The second problem issue with health care is the rising cost of health. Even after the government postulating Medicaid and Medicare programs individuals still face limited access to coverage and care. The government budgets have been unable to maintain the financial resources demand these programs and the healthcare practitioners choosing to participate are steadily deteriorating. Failing policies from the federal government and inadequate refund levels is a major threat to the present programs and upcoming generations. From the research, it is clear that health care costs are growing fast.

For example, in 2007 an estimate of $2.1 trillion was spent by the government health in order to offer, finance, and manages health care. In addition, the fast-rising cost of health care cost around 7% per year is eroding millions of individual’ s paychecks. If the cost keeps rising it will rise to 19% by the year 2016.,   In other words, this should be a considerable problem to be concerned about by the health care sector for better health care services in the future (Weathers,   Stegman, 2012, P.

863-75). All these economic issues have an enormous impact on the sector of health care. These issues will lead to an unhealthy community. The issues will lead to poor-quality health care services since most health care practitioners will be incompetent. In addition, these issues will lead to loss of jobs due to decreased number of customers (Lawrence, Summers, 2004). In conclusion, to address the issues as a health care leader, some remedies can be suggested to be implemented in order to sustain quality health care. First, the government should postulate health care systems that have incentives that are less inexorable, less terrible, and less perverse.

The incentives should emphasize health and well-being other than just health care. They should emphasize prevention over treatment. They should show the real cost. The incentives should be transparent and discourage complex competition based on quality or price. They should result in sustainable financing rather than a generational pyramid scheme (Van Baal, Wong, 2012, P. 876-87).  


Bardey D., Canta C., Lozachmeur J. (2012). The Regulation of Health Care Providers’ Payments

When Horizontal and Vertical Differentiation Matter. Journal of Health Economics,

31(5), 691-704.

Daysal M. (2012). Does UnInsurance Affect the Health Results of the Insured? Journal of

Health Economics, 31(4), 545-563

Lawrence H. Summers L. H. (2004). Reflections on Fiscal Policy and Economic Strategy. Johns

Hopkins School of Advanced International Studies. Retrieved from.

Maynard A., Jones A., Mullahy J., Briggs A. (2012). Health Economics. John

Wiley & Sons, Ltd., 21(2) 1-11

Van Baal P., Wong A. (2012). Time to Death and Forecasting of Macro-level Health Care

Expenditures: Some further considerations. Journal of Health Economics, 31(6), 876-887

Weathers R., Stegman M. (2012). The Effect of Expanding Access to Health Insurance on the

Health and Mortality of Social Security Disability Insurance Beneficiaries. Journal of

Health Economics, 31(6), 863-875

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