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In: Economics

{industrial organization} Which technological, organizational, and financial innovations caused the rise of hospitals in the twentieth...

{industrial organization} Which technological, organizational, and financial innovations caused the rise of hospitals in the twentieth century?

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Expert Solution

The second half of the 20th century witnessed spectacular advances in health care. Innovations such as magnetic resonance imaging, genetically engineered growth factors, and highly effective drugs for the treatment of depression, gastroesophageal reflux, high blood cholesterol, and HIV disease greatly improved the detection and treatment of both rare and common diseases. The advances greatly improved the outcomes of complex procedures such as organ transplantation, coronary artery bypass surgery, and high-dose chemotherapy (bone marrow transplantation) for acute myeloid leukemia and multiple myeloma. As the 21st century opens, technological progress in medicine is continuing and may be accelerating. It is a source of hope for the prevention, effective treatment, and cure of disease.

Technological Innovations

So many technological innovations were made in twentieth century. Here is the list

First Cardiac Pacemaker
DNA Structure
First Kidney Transplant
First heart valve developed
First hip replacement Example of a DNA Structure: The 1960s:
First oral polio vaccine
Vaccine for the measles
Vaccine for the mumps
First successful heart transplant
Nuclear medicine
ICU The 1970s:
First vaccine for rubella
First vaccine for chicken pox
First vaccine for pneumonia
First vaccine for meningitis
Physical therapy
CT Scans This is a CT Scan machine. CT stands for computed tomography. It helps take images of inside the body. The 1980s:
World Health Organization announces the end of smallpox
First vaccine for hepatitis B
HIV is recognized The logo for World Health Organization. etc

Such innovations often have their greatest impact long after they are introduced, when patients who would have received an older, inexpensive treatment or none at all receive more, or more expensive, care. Such shifts typically occur when the use of a new drug, device, or operation spreads beyond the narrowly defined populations in which it was introduced. Thus further inducing the popularity of hospitals became pretty evident in twentith century.

Organizational Innovations

The organizations involved in treatment provision are also subject to substantial change as they ramp up to the challenges involved in providing safe and technologically appropriate environments for biologics, genetically modified organisms, and other targeted therapies. By the end of the nineteenth century infectious disease was beginning to be understood. Semmelweis showed that hand-washing could reduce the transmission of puerperal fever. Lister’s introduction of antisepsis, coupled with the discovery of safe anaesthetic agents, made elective surgery safer. In England, Florence Nightingale established a professional basis for nursing. Hospitals were now able to offer more than basic care, but their role as a setting for medical treatment was not yet established, and the middle classes continued to have the doctor treat them at home. By the twentieth century, the hospital was beginning to take on its present-day role. Advances in chemical engineering laid the basis for a pharmaceutical industry; for example, research on chemical dyes led to the invention of sulfonamides. Hospitals began to offer cure rather than care. As the scope for clinical intervention increased, technology became more complex and expensive. By the 1930s, few surgeons operated on wealthy patients in their own houses.Advances in military surgery in the Second World War had a profound impact on hospital care, with the introduction of safe blood transfusion, penicillin, and surgeons trained in trauma techniques. The greatest changes occurred from the 1970s onwards, however, with advances in laboratory diagnosis and the recognition of new, and often treatable, diseases. The massive expansion in pharmaceuticals transformed the management of diseases and conditions such as peptic ulcer, childhood leukaemia and some solid cancers. New specialities emerged, such as oncology, and common conditions such as peptic ulcer, previously treated with prolonged hospitalization, were managed in ambulatory care. Whole new areas of surgery became commonplace, such as coronary artery bypasses, transplantation of kidneys and other organs, and microsurgery. These advances took place against a background of changing patterns of disease. At least in industrialized countries, many infectious diseases were disappearing. General surgeons saw fewer cases of acute appendicitis. Orthopaedic surgeons turned to hip replacements, as a substitute for surgery on tuberculous disease of the spine, or tendon transplants for poliomyelitis. Thoracic surgeons, no longer occupied by tuberculous lung cavities, turned to the surgical management of lung cancer and to open heart surgery.

Financial Innovations

In a lot of developed countries, lot of organizations and institutes took initiatives to provide medical care.  Public-private partnership structure was developed to help provide emergency services. Enormous investment in health care facilities and Insurance sector was made.Costly medical service were introduced which are reduced in today's time.Innovation in health care presents two kinds of financial challenges: funding the innovation’s development and figuring out who will pay how much for the product or service it yields.


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