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Capital Financing in Health Care The expenditures for medical care in the United States has increased during last decades. According to the data it grew from approximately $ 100 in 1960 billion dollars to $ 900 billion dollars in 1993. This rapid growth increased the role of medical services in the state economy, because the health care expenses rose from 7. 1 to 14. 7 percent of the GDP. However last time the tendency to growth in health care trend have fell down. The expenses for medical services increased at a 5 -percent for a year between 1995 and 2000. In the same way, the GDP contribution to health care became stable.
This development shows the bonds of different aspects: the decrease of the cost of the medical services provided by employer-sponsored plans for the workers; low inflation; the opportunities of the new medical services provides to enter the market. For the 278 million people who live in the United States of America, the cost of the medical services became $ 4, 358 per person, though in 1960 it was $ 143. In the USA health care is financed by different private companies and programs. For-profit private health care establishments finances structure includes the money from individuals, private insurance, charity, and non-patient profits. In 1980 - 1995, the financing of private health care establishments amounted for approximately 60 percent of medical service costs.
However in 1996 this share had decreased to 52. 5 percent of the states health care expenses, and rose a bit to 56. 8 percent by 1998. The expenditures for public not-for-profit health care rose in the same way in 1992 - 1996, and fell in 1997 - 1999. Public health care services are financed by local, state, federal, and governments. Each of the following programs are also financed: the Department of Defense health care programs for military personnel, the Department of Veterans' Affairs health programs, non-commercial medical research, payments for health care under Workers' Compensation programs, health programs under State-only general assistance programs, and the construction of public medical facilities, maternal and child health services, school health programs, public health clinics, Indian health care services, migrant health care services, substance abuse and mental health activities, and medically related vocational rehabilitation services.
Medicare and Medicaid programs are the most important and bear the largest share of the costs. In 1999 they spent $ 403 billion dollars for health care services that is one-third of the country's total bill for medical services. Medicare and Medicaid provided many administrative and legislative changes in order to improve the medical services. Many for-profit medical organizations now are suffering debts. By examining the following hospitals and their incomes we found out that: ANAHEIM GENERAL HOSPITAL has net income - 3 370904, AURORA CHARTER OAK - 608381, AURORA SAN DIEGO - 938996, BAKERSFIELD HEART HOSPITAL - 3 801478, CANYON RIDGE HOSPITAL - 224089, CENTRAL VALLEY ORTHOPEDIC & SPINE INST - 668050, CENTURY CITY HOSPITAL, - 121524, CHILDRENS RECOVERY CTR OF NO CALIF - 193073, CHINO VALLEY MEDICAL CENTER - 1 896673, COLLEGE HOSPITAL COSTA MESA - 2 319322, COMMUNITY & MISSION HOSPS-HTG PARK - 229760, CONTINENTAL REHAB HOSP FOR SAN DIEGO - 805641, DANIEL FREEMAN MARINA HOSPITAL - 13 321718, DOCTORS' HOSP MED CTR OF MONTCLAIR - 2 135747, DOCTORS MEDICAL CENTER - SAN PABLO - 7 583347, EAST LOS ANGELES DOCTOR'S HOSPITAL - 1 254 018 EAST VALLEY HOSPITAL MEDICAL CENTER - 1 342757, ELASTAR COMMUNITY HOSPITAL - 496720, ENCINO TARZANA RGNL MC ENCINO - 9 611851, FREMONT HOSPITAL - FREMONT - 612882, FRESNO SURGERY CENTER - 432423, HUNTINGTON BEACH HOSPITAL - 3 938693, KNOLLWOOD PSYCH & CHEMICAL DEPEND CTR- 375807, LA PALMA INTERCOMMUNITY HOSPITAL - 3 534785, LANCASTER COMMUNITY HOSPITAL - 6 222 789 LINCOLN HOSPITAL MEDICAL CENTER - 4 790 188 MEMORIAL HOSPITAL OF GARDENA - 1 107 401 MENLO PARK SURGICAL HOSPITAL - 1 590 811 NEWPORT BAY HOSPITAL - 160 105 NORTHERN CALIF REHABILITATION HOSPITAL - 145 610 ORANGE COUNTY COMM HOSP - BUENA PARK - 2 440 780 QUEEN OF ANGELS-HOLLYWOOD PRESB MED CTR - 3 564 948 REGIONAL MEDICAL CENTER OF SAN JOSE - 24 257 139 S.
T. A. R. S. - PHF - 1 266 591 SAN CLEMENTE HOSPITAL & MED CTR - 1 314 177 SAN JOAQUIN VALLEY REHAB HOSPITAL - 228 339 SAN JOSE MEDICAL CENTER - 16 337 054 SAN LEANDRO HOSPITAL - 94 085 SAN VICENTE HOSPITAL - 361 923 SANTA ANA HOSPITAL MEDICAL CENTER - 2 836 374 TELECARE SOLANO PHF - 482 441 TUSTIN HOSPITAL MEDICAL CENTER - 3 381 231 VALLEY PLAZA DOCTORS HOSPITAL - 836 088 Now we see that 40 of 130 private hospitals have no income and big debts. This can be explained by the fact that now the people organize a lot of strikes against for-profit medicine. So they do not want to let their quantity to grow.
But such measures can also be harmful because this can stop the entering of the new private companies to the market. Now it is difficult to predict what these strikes can lead to. However for now we only can predict that if Congress doesnt change the current situation, the forecasts suggest that growth of the financing of health care industry will continue at rates faster than the 1990 s but slower than during last years. Also the growth of GDP is expected to increase from its recent strong pace.
The result is a predicted return to the increasing proportion of economic resources devoted to medical services. Bibliography Smith, John Health care financing, New York 2002. Loeb, Pamela The predictions of our heath care system state, Washington, 2003.
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Research essay sample on Capital Financing In Health Care
