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Introduction:
This assignment requires the analysis of a financial and economic issue within the healthcare industry. The paper should be 700-1050 words long and focus on a current issue in the healthcare industry. The analysis should consider the financial impact of the problem on the healthcare industry, economic trends of the payment system, supply and demand challenges, why costs are increasing in the healthcare system, and regulatory issues affecting the healthcare industry. Additionally, recommendations for mitigating the problem and discussions on the outcome of these recommendations if implemented should be included. The paper needs to cite three peer-reviewed, scholarly, or similar references and should follow APA 7th edition guidelines.
Answer:
One current economic issue in the healthcare industry is pharmaceutical costs. According to 2019 statistics provided by the Centers for Medicare and Medicaid Services (CMS), prescription drug spending accounts for approximately 10% of the total healthcare spending in the United States. Pharmaceutical expenditures have been increasing drastically in recent years with prices significantly higher in the US compared to other countries. Factors that contribute to high drug prices in the US include research and development, marketing costs, and patent protection issues.
Moreover, the demographic change in the United States with the aging baby boomer generation will drive an increase in the usage of prescription medications. This increase, coupled with high drug prices, will significantly affect the financial health of the healthcare industry. Furthermore, it is also important to take into consideration the ethical challenges associated with the pharmaceutical industry, transparency and fair pricing must also be a significant focal point.
There are possible recommendations to mitigate high pharmaceutical costs in America’s health care industry. A regulatory agency that monitors the pricing could be established. The regulatory agency could ensure that prices are set in a socially responsible manner, monitor drug monopolies and evaluate the negative impact on the health care industry, as well as monitor the safe manufacturing process of drugs. Additionally, a possible implementation method could be the combination of new technology in the drug production process, or a shift towards alternative methods in drug production.
If the aforementioned recommendations are implemented, the drug prices would face regulatory issues that could reduce prices to an affordable and fair cost. Additionally, there will likely be an increase in drug production innovation and transparency. Furthermore, the cost of manufacturing drugs through newer technology and alternative methodology could be reduced as well.
In conclusion, pharmaceutical costs are a current economic issue affecting America’s healthcare industry. High drug prices have an adverse effect on healthcare financing and are complicated ethical issues when looking at transparency and fair pricing. By introducing regulatory agencies that manage drug prices, along with implementing new technological advancements and finding alternative drug production methods, the pharmaceutical industry could become a collaborative supporter of accessibility and affordability in the health care system.
