Portfolio Project Option #1: U.S. Healthcare Systems
The U.S. healthcare system is influenced by a shifting political climate, constant economic development, rapidly evolving technological innovation, diffusion of social values, demanding workforce issues, and demographics trends. Also, the U.S. system differs from other countries’ systems on many dimensions, such as lack of a central governing agency, limited coordination, high costs but only average health outcomes, imperfect market conditions, the dominant private sector market, multiple organizational forms and players, and the conflict between market goals and social justice. The concern over the economic future of healthcare systems revolves around three broad issues: cost, quality, and access. Gaps in coverage, combined with the upward trends in medical care spending over the past several decades, add to the commonly held belief that the U.S. healthcare systems is in crisis.
As a final project for HCM375, prepare and submit a scholarly paper that discusses the following:
- Describe the economic foundation of the U.S. healthcare delivery system and the role of economics in healthcare.
- Compare and contrast the use of various economic models to explain the role of economics in healthcare and how the concept of the market equilibrium works in healthcare.
- Assess the role of production of health and demand and supply for medical care and health insurance, and relationship of income and the demand for healthcare.
- Compare the economic benefits and challenges of individual versus population health.
- Assess the international comparisons of health among the United States and other developed countries (cost, quality, access to care, and any other relevant measures).
The paper is due at the end of week 8 and must be:
- in CSU-Global APA format
- double-spaced
- a minimum of eight pages in length (not including cover and reference pages).
Make sure you include headings, per APA guidelines. Include a minimum of 10 current and credible sources. Five of the sources must come from peer-reviewed journals. Sources should be adequately chosen to provide substance and perspectives on the issue. For project details, see the Portfolio Project Description, which is located in the Module 8 folder.
*Below in the attached file, those are the 10 references I want to use for my project*
Expert Solution Preview
Introduction:
The U.S. healthcare system is complex and influenced by various factors such as the political climate, economic development, technological innovation, social values, workforce issues, and demographics trends. The economic foundation of the U.S. healthcare delivery system and the role of economics in healthcare are crucial factors in understanding the current state of the healthcare system. This paper will discuss the economic foundation of the U.S. healthcare delivery system, the use of various economic models in healthcare, the role of production of health and demand and supply for medical care and health insurance, the economic benefits and challenges of individual versus population health, and international comparisons of health among the United States and other developed countries.
1) Describe the economic foundation of the U.S. healthcare delivery system and the role of economics in healthcare.
The U.S. healthcare delivery system is based on a mixed-market approach, which means that it involves both public and private financing and delivery of healthcare services. Economics plays a significant role in healthcare as it is the study of how individuals and organizations allocate scarce resources to achieve the desired objectives of society. The U.S. healthcare system’s economic foundation is based on the principles of supply and demand, market competition, pricing mechanisms, and incentives. The healthcare market is imperfect due to information asymmetry, moral hazard, adverse selection, and externalities, which pose challenges to the efficient functioning of the market.
2) Compare and contrast the use of various economic models to explain the role of economics in healthcare and how the concept of the market equilibrium works in healthcare.
Economic models such as the traditional supply and demand model, principal-agent model, and agency theory are used to explain the role of economics in healthcare. The supply and demand model explains the interaction between healthcare providers (supply) and patients (demand) in a market-based healthcare system. The principal-agent model and agency theory address the issues of information asymmetry and moral hazard in the relationship between the healthcare provider and patient. The concept of the market equilibrium in healthcare refers to the balance between the supply of healthcare services and the demand for those services. The equilibrium price and quantity in healthcare are influenced by various factors such as reimbursement policies, payment models, and provider competition.
3) Assess the role of production of health and demand and supply for medical care and health insurance, and the relationship of income and the demand for healthcare.
The production of health is the outcome of healthcare services that involve both medical and non-medical factors such as lifestyle, environment, genetics, and social determinants of health. The relationship between the demand for medical care and health insurance is driven by factors such as the cost of medical care, the level of insurance coverage, and provider competition. The higher the income of the individual, the higher the demand for healthcare services. The relationship between income and the demand for healthcare is influenced by factors such as the cost of healthcare, the availability and accessibility of healthcare services, and the level of health insurance coverage.
4) Compare the economic benefits and challenges of individual versus population health.
The economic benefits of individual health include increased productivity, reduced healthcare costs, and improved quality of life. The economic benefits of population health include reduced healthcare costs, increased productivity, and improved economic stability. The challenges of individual health include high healthcare costs, insufficient healthcare coverage, and health disparities based on socio-economic status. The challenges of population health include the need for investments in healthcare infrastructure, healthcare workforce, and health education programs.
5) Assess the international comparisons of health among the United States and other developed countries (cost, quality, access to care, and any other relevant measures).
The U.S. healthcare system differs from other developed countries on various measures such as the lack of universal healthcare coverage, higher healthcare costs, and lower health outcomes. Countries with universal healthcare coverage have lower healthcare costs, better health outcomes, and higher levels of healthcare access. The U.S. healthcare system’s focus on market-based approaches has shifted the emphasis from population health to individual health, resulting in higher healthcare costs and lower health outcomes compared to other developed countries that emphasize a population health approach.
Conclusion:
In conclusion, understanding the economic foundation of the U.S. healthcare delivery system and the role of economics in healthcare is crucial in addressing the challenges facing the healthcare system. The use of economic models such as supply and demand, principal-agent, and agency theory can help explain the complexities of the healthcare market. The relationship between income and the demand for healthcare, the role of production of health, and the benefits and challenges of individual versus population health are important factors in shaping the healthcare system. Finally, international comparisons of health among the United States and other developed countries highlight the importance of a population health approach versus a market-based approach to maintain a sustainable and equitable healthcare system.