National Health Care Spending

Current Level of National Healthcare Spending

Identify and Discuss the Current Level of Healthcare Spending, i.e. $

The US spending in the health care sphere has increased during the last fifty years. For instance, in 1960s, it was about $27 billion, while in 1993 this figure was $888 billion. According to this fact, the US spending has been increasing on 11% every year. By 1999, this rate has increased to 5% annually, and became $1.2 trillion. In 2011, National health care expenditures reached the figure of $2.8 trillion. According to this fact, one can state that national healthcare spending has always been increasing during the last years and one can also notify that this contribution moves the national health care system to a new level of servicing.

Current Level of Spending - Too Much or Too Little

Nowadays, the annual national health care spending is about $2.8 trillion. This figure is much bigger than it was in 1960s. However, the statistics show that the annual rate of increasing national health care spending has decreased. For instance, since 1960s till 1990s, the annual increased rate was about 11%. Today, it is about 5-6% every year (Hoffman & Jackson, 2013). Hence, despite the fact that the general spending in health care sphere has significantly increased, today it receives less financial support than it did thirty years ago. Thus, one can state that national healthcare spending is on a high level, but the current conditions demand that health care sphere always develops and requires the additional costs. Thus, the current level of national healthcare spending is on the medium level with the request to be improved.

Where as a Nation Should We Add or Cut National Healthcare Spending

Nowadays, national healthcare spending has increased in surgery. However, one may outline that the increase of outpatient surgery services leads to the decrease of community hospital beds. Hence, the number of community non-profit hospital beds decreased on 100,000 during the period from 1995 till 2002 (Thornton & Rice, 2008). In other words, it is almost 11% declining for seven years. This tendency continues to develop and today the non-patient surgery centers outnumber the general hospitals in Pennsylvania. According to this fact, it can be said that it is necessary to develop the general hospitals and decline the impact of non-hospital owners on the healthcare service. The state hospitals predetermine benefits for the citizens, while private hospitals are more targeted on the quality of services than on additional opportunities for their clients.

How Should the Public Healthcare be Paid For

Specify the Percentage of National Healthcare Spending that is Provided by Individuals, Insurers, the Federal Government, etc. as a Percentage of total spending.

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Today, the majority of healthcare needs are still paid by federal government, but the number of individuals and insurance has recently increased. For instance, almost 55% of healthcare needs are financed by governmental organizations and associations, 38% are financed by private owners and 27% is the result of insurance programs. However, in 1990s the governmental financing was almost 67%. In 1970s, this figure reached the number of 74%(Healthcare Financial Management, 2012). According to this fact, it can be said that in present situation, government programs have less impact on the health care institutions. Today, the increasing number of private clinics has captured the supreme position and continues to grow.

What Is the Major Economic Challenge Faced by the Healthcare System Providers (hospitals, physicians, clinics, etc.)

The possible economic challenge that healthcare system providers may face is the lack of borrowing capacity. Healthcare providers prefer not to be risk-takers and they do not purchase new equipment if they cannot pay the full price. However, some manufactures provide financial support for these purchases; on the other hand, those hospitals, which will agree for these conditions, have to become the non-official promoters of particular technologies. Another problem is the conflict between the hospital managers and its staff. The reason of conflict is the irrational usage of hospital resources. Finally, it led to the financial loss and the hospital’s staff was guilty because its staff does not perform the hospital’s primary goals.

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Why Must This Challenge Be Addressed

These challenges deserve the special attention because they have direct impact on the hospital’s workability. Conflicts that arise between managers and hospital’s staff are the result of financial issues. The irrational usage of hospital resources is the problem itself. Hence, one should find the reason of this issue, and it is necessary to make an investigation that will discover why staff has such an attitude towards the hospital resources. The next step will be predetermining the similar situation in future; on the other hand, if one keeps a blind eye on this situation, it may lead to more financial losses for a particular health care center. The second challenge is financial programs that give an opportunity to buy all necessary equipment for hospital’s needs.

How Will This Challenge Be Financed

When one talks about the low level of financing programs which should be goaled on the buying of new equipment, then this issue does not require any specific financial strategy. The only thing that is necessary to do is to receive the state financial support in order to purchase new equipment. As a rule, new technologies give a lot of advantages; due to them, hospitals are able to introduce new services that were unavailable before. Hence, the number of clients will increase and it will also increase the profit of a particular hospital. The second challenge can be financed via the medical support organizations the work of which is connected with work performance and obeying rules and obligations. Probably the conflict situation could be solved if hospital will provide special trainings that will be helpful in increasing the awareness of hospital’s workers and make them more oriented on their obligations. However, these trainings require additional costs and, thus, it is necessary to request it from the medical associations.

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