Implications of Health Economic Concepts for Healthcare

Abstract

It is the substance of the ongoing rise in the world of health care economics in the US. This paper will display the notions that have compressed Income Diversity and Rising Health Care Costs in the U S displays that health expenses are the largest force of pay diversity. This justification has created health care economics to go in and out several overhauls leading from the compensation which is the core of health care economics, which is the key to economists, policymakers, scientists, and governmental leaders. Nowadays, many organizations compensate their employees providing them income and a benefits packet, the most significant is medical coverage. This could be another reason behind employer's salary raises to maintain complete compensation expenses to cover the high price of health insurance upsurges. In health care economics, the gross domestic product is significant and there is an extraordinary hike in the GDP from 1960 to 2008, and expecting at least a 19% or more by 2019 (Hicks, 2014).

The value of Health Care Professionals and Understanding the Discipline of Health Economics

The economics of health care practices for financing are frequently changing since the 1800s. This started the foundation for the American Medical Association in 1847, which supported scientific development, enhanced public health, and financed physicians and patient relationship. In the beginning, doctors were compensated for services established on a profit-making system. Doctors have made and still making house call visits to the sick patient and was given produce in for compensations or food for services render. Hundreds of years after, the demand and supply changed and health care now is more important with advancement, (American Medical Association, 2012).

In the early twentieth century, medicine and hospitals developed more and health care shifted with more well-known advances. As migration rise, infections and poverty-stricken labor...