The Fundamental Healthcare Problem
According to the Mauldin 2013, it is stated that: “The US currently spends 17.9% of its total GDP on health services This figure is projected to rise in the near future by about another 1% due to the population’s aging and a further 3% due to the growing incidence of chronic illnesses. Unpredictable increases may raise the country’s healthcare costs hence reducing the Gross Domestic Product. Most of the government resources will divert to sustain provision of healthcare services. Othersectors of the economy will get a smaller percentage of funds government to operate on. Ultimately these sectors might do poorly and gain little or no revenue. From previous treasury archives; there is a constant trend where by the US state spends the largest chunk of its funds on medical services.
This has been so because most of US citizens are suffering from lifestyle diseases.Research done by Dr. Jeff Brenner in Camden, New Jersey, shows that 30% of a hospital’s operating cost is as a result of 1% of the patients who are the chronically ill. It is those suffering fromlife threatening diseaseswhose complex medical situation result to high operating costs of a hospital (Mauldin, 2013). This is proof that the US health system is dysfunctional and it does not even work for those who are getting the care. Dr. Brenner who is the owner of Coalition of Healthcare Providers (CCHP), has is carrying out research to find a way to improve health care services.
The adoption of the Affordable Care Act (ACA) will force Hospitals and doctors to adjust their operational float and prices of medicines. In this act, the government plans to pay for the costs incurred by hospitals. In addition the government wantsto pay for all patients in a volume-based reimbursement scheme where payment is done according to the number of patients procedures done or use a “value-based system”. The value based system advocates for paying the same amount for every patient. The value based system is not biased towards the degree of sickness. In this system the government pays every patient’s bill at the same rate and price.
Factors Affecting the Success of the Act Success is determined through the effects Obamacare and ACA will have on the economy. It is evident that people will be offered health services at an affordable price. The introduction of technology i.e. the smartphone application will enable every citizen to access care. Advanced technology might lead to shortage of highly skilled medical staff because less of them will be needed. On the contrary, technology advancement may lead to a large number of unskilled employees.CAC 2016 report states that, the aging population and chronically sick are the highest cases in US. There is increased medicalserviced required by these groups of persons.
Advance in technology and treatment to help the chronically ill and multiple researches on aging has majorly contributedto theincrease of government funding on health care.CompetitionExtra money directed towards health care can be used to fund other sectors e.g. education, …