The History Of Helathcare Essay

723 words - 3 pages

The History of Healthcare Economics
Stephanie Creech
HCS/440
December 12, 2011
Bert Munoz


The History of Healthcare Economics
When healthcare first began just about anyone could practice medicine, and it stayed this way in the United States until 1806 when the first licensing laws were passed in New York (Wellness Directory of Minnesota, 2003). Since then healthcare has evolved; changes in technology, organization, and payment structures just to name a few are constant. Keeping up with them, and understanding how they affect healthcare economics can be challenging to say the least.
Although, there are many factors that contributed to these changes perhaps the biggest ...view middle of the document...

Now, third party payers such as Medicare, Medicaid and insurance companies pay the majority of the cost (Getzen & Moore, 2007).
Hospitals that were once considered minor supports for a few disabled or disadvantaged individuals are now works of beauty with state of the art technology. In the 1900’s hospitals were supported by some donors and a small percentage of patient fees; now they are financed mainly through Medicaid, Medicare and other private insurances. Today, insurances cover more cost which shifts the financial burden on third party payers. This has changed the way the funds flow and makes funds more available so that the healthcare system can grow quickly
In conclusion medicine and the economics of healthcare care has evolved rapidly from the time formalized medicine has began. In the past the doctor that accepted barter or other services such as food or livestock for payment is now a highly paid physician or technician. There are many factors that have contributed to these changes but perhaps the biggest factor is the advances in technology and the quality of medical care. In the past almost all expenses came directly from out of pocket costs. Today that has changed considerably; third party payers now pay the majority of...

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