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Health Spending And Its Effects On Future Managers

1020 words - 5 pages

Health Spending and its Effects on Future Health Care Managers
The United States spends more on healthcare than then any other country in the world. In 2012 the United States spent an average of $8,915 per person on health care, totaling $2.8 trillion. Unfortunately, spending will continue to trend upwards due to a number of key factors. According to Kaiser Health News staff writer, Mary Carey, “national health spending will increase modestly over the next decade as a result of an aging population, a recovering economy, and the health law’s expanded insurance coverage”(Carey, 2014) As baby boomers continue to age and the Affordable Care Act changes the health insurance market, “employment ...view middle of the document...

According to the authors in the article “National Health Expenditure Projections, 2012-23: Faster Growth Expected with Expanded Coverage and Improving Economy,” the total hospital spending growth is expected to drop from 4.9 percent in 2012 to 4.1 percent in 2013 (Sisko et al., 2014). However, an increase use of hospital services is contributed to the expansion of coverage of the Affordable Care Act resulting in growth in hospital spending of 4.5 percent in 2014 and 5.1 percent in 2015(Sisko et al., 2014). While the Affordable Care Act positively impacts the aging population as they continue to enroll in Medicare, hospitals and doctors are subject to budget cuts (Sisko et al., 2014). According to the authors in the article “National Health Spending Projections Through 2020: Economic Recovery And Reform Drive Faster Spending Growth,” “the increased demand in response to expanded insurance coverage for physician services and pharmaceutical is anticipated to be higher than that of hospital services. One reason is that insurance expansions can typically lead to more efficient use of health care services, which would increase office visits and prescription drugs, and could lead to less reliance on hospital care”(2011). This means there will be fewer opportunities for health care managers and employment will shift from hospitals to clinics and private practices.
According to the Bureau of Labor Statistics (2014), employment of health managers is “projected to grow in offices of health practitioners.” Many services previously provided in hospitals will shift to these settings, especially as medical technologies improve.” According to the authors of the article “National Health Expenditure Projections Through 2013-23: Faster Growth Expected With Expanded Coverage and Improving Economy” (2014), in 2014 the spending of physician and clinical services is projected to grow 5.9 percent. By 2020, spending is projected to grow to 6.5 percent (Sisko et al, 2014). The authors of the article “Building a Health Care Workforce For the Future: More Physicians, Professional Reforms, and Technological Advances” states “the number of older...

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