Essay example --

Introduction The two most important factors that have contributed to healthcare economic changes are technological advances and medical care. One thing that people have to understand is the fact that the backbone of health economics is money and this central position grants it the integral role of ensuring that that the health care industry was successful (PBS, 2012). This money is not necessarily from people’s private funds but from like was the case in the past but it is money paid by insurance companies that pays for people’s medical bills. In addition, other third parties also account for the medical bills leaving the individual to pay just a small function of the entire funds flow from their own savings. Having an understanding of the history of healthcare economics and the nature in which money flows through the system is important in enabling managers to evaluate their present positions while at the same time preparing themselves for the future. In this paper, the discussion will focus on evaluating the history of healthcare economics and its evolution as well as how cash flows within this system. History and evolution of healthcare economics In order to understand the health insurance systems as there are today in the US, one has to best understand how in was born or how it came to be and what the future has for it. The best question to answer would then be how it came to be in the US that employers pays for the health insurance of their employees while they don’t pay for all the other of their employees expenses like groceries. The first time evolution in the healthcare system was experienced was in 1920s. During that time, choices narrowed down to the patient’s preferred form of treatment no matter how crazy or non-sensi... ...ds healthcare till to date. Conclusion In the 1920s, there was a very strong urge to adopt a new healthcare system with more emphasis being on the medical care costs and not on costs experienced during sickness, (PBS, 2012). The occurrence of the depression in the 1930s changes the health insurance priorities to incorporate the unemployed and benefits granted to the elderly. With the Second World War in the 1940s, prepaid healthcare by groups intensified as employers used health benefits offers to lure employees hence resulting to the rise in the employer based health system as is present today. However, the poor and unemployed were left out hence the welfare service to the poor in the 1950s. With time, inflation doubled prices in hospitals and the old and not working could not access health services hence Medicare and Medicaid passed to law in the 1960s till today.