Question

Please provide a historical summary of medical insurance, advancements in medical schools, or the developments of hospitals. Incorporate into the posts the structural differences of health care including inpatients care, ambulatory, nonprofit and for-profit facilities, and hospital ownership.

Answer 1

It started in the US for the first time in 18th century. At that time, it was known as accident insurance to be claimed against accidents. However, the modern day health insurance only started in 1920 (Texas) which used to cover the hospital expenses on a prepaid model basis. Justin Kimball created Blue Cross to allow teachers in Dallas to pay a hospital 50 cents a month and not be charged when, later, they went to that hospital to have children. This was actually pre-payment and not insurance, although some of them probably never had children. Employer- (or union) sponsored health insurance became commonplace after World War II when it was offered as a benefit to compensate for limited wages, or as a recruiting tool in job categories with high demand and limited supply. President Truman began throwing around the idea of a government-sponsored health plan during this post-war period. However, it wasn’t until 1965 that Lyndon Johnson signed Medicare and Medicaid into law. In the 1970s, changes in the law allowed managed care through HMOs.

Different types of hospitals have emerged post 18th century when the informal ways of educating medical sciences started in London. It has reached to very particular specializations now-

1. Ambulatory surgical centers- These hospitals provide same-day surgeries and are very cost effective. The patient need not be admitted in these kinds of surgical centers.
2. Inpatients care is mostly used in rehabilitation centers where patients are given intensive care regime
3. Nonprofit hospitals are most commonly found in urban areas and they are not supposed to return any profits to the shareholders. The money made is reinvested in the hospital for facilities, advancements etc. In return, they get tax benefits.
4. For-profit- Hospitals are investor-owned and hence, the profits owned goes to the investors instead to hospital facility improvement.

To delve deeper in the history of medical sciences and improvement over time, please read the white paper - http://www.nhshistory.net/hospitals_and_medical_education.htm