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Healthcare Economics

Select 3 terms related to economics and discuss how these terms compare to each other in the world of healthcare economics specifically. Some examples of terms are resources, quality, technology, and costs.

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As of the year 2012, the healthcare spending in the United States accounted for approximately 20% of the country's Gross Domestic Product (GDP) from 2009 of 17.7%. This is considered to be the highest share in the OECD; at eight percentage points higher than the OECD's average of 9.5%. In the year 2010; per capita, the U.S spent almost 9000 USD on health, two-and-a-half times more than the OECD's average of $3268 USD; Norway and Switzerland spent a little over $5250 USD per capita. America spent more than twice as much as her other industrialized counterparts and relatively rich European countries such as France, Sweden and the United Kingdom(OECD, 2012) .As the old adage goes"we pay for our thrills in life". Health expenditures continue to grow very rapidly in the U.S.

Medical Technology:
America's outrageous increases in health insurance premiums over the last several years have also focused the health reform debates on the issues of cost containment and health insurance affordability. One persistent question is why spending on healthcare consistently rises more than spending in any other sector or aspect, and on other goods and services? Healthcare economists and experts are usually fast to point towards the development, implementation, and innovation as well as to the diffusion of medical technology as central in explaining the pervading difference between health spending and the overall economic growth. Some have even argued that new medical technology may account for about one-half or more of the real costs and amounts in long-term spending and growth. The answer, dynamics, mechanics, and intricacies are very complex (Kaiser, 2007).

As it relates to health economic and medicine, technology entails the medical equipment's, procedures, and processes by which medical care is delivered. Cat scans, defibrillators, and electronic and tele-medicine, are some examples. To date, heart disease is still the leading cause of death in the U.S. An excellent example how new technology can and has changed the treatment and prevention of disease over time. For example, In the 1970's, when cardiac care units were first introduced, lidocaine was used to manage and monitor irregular heartbeat; as well, beta-blockers were used mainly to lower blood pressure, especially within the first 3 hours after following a heart attack. Clot breaking drugs then came into use, followed by coronary artery bypass surgeries (Kaiser, 2007). By ...

Solution Summary

The expert selects three terms related to economics. How these terms compare to each other in the world of healthcare economics specifically are determined.