Question

According to some, one of the reasons for controlling the rising cost of care is that it makes American business less competitive internationally. This will be the topic of this week’s discussion question. First, discuss the notion that the market for labor is competitive, especially in healthcare. What happens when a firm or industry passes high labor costs to consumers? What happens if an industry is strongly unionized? List and discuss the possible adverse effects of rising medical cost on the US economy. After completing your research, do you feel that the rising costs of care makes US businesses less competitive internationally?

Answer 1

United States indeed has one of the best health care systems in the world. The country has the highest health care spending capacity in the world. US takes sufficient measures to address the health and safety of its citizens- need wise as well as age wise. Numerous old healthcare schemes facilitate the care of older citizens.

USA’s healthcare crisis comprises the following issues:

• Problem of the uninsured citizens and growing cost of insurance premium
• Ownership of premium payment
• Unaffordable healthcare premiums
• Controversy over Affordable Care Act
• Restricted coverage of physicians and hospitals

Out of these, the most pressing issue related to healthcare financing is the rising healthcare costs of the country and the unaffordable premium prices.

Short-term expectation and objective

The USA is considered one of the major markets in the healthcare segment. With uncertainty in the healthcare policies of the USA, the globalization rate of health care segment has subsided. The initial proposal of Obamacare and then the controversy around it leading to reforms in the act by Trump Government has still not been able to clear the confusion layer in this segment. As a result, flow of capital in this segment has considerable reduced, thus impacting the globalization rate. The rising healthcare cost substantially affects the economy of US and makes it less competitive in the global market.

In order to reduce the healthcare costs, USA healthcare administrators and policy makers need to research about the scope of single payer system, the one implemented in Canada. They need to check the feasibility of such system in USA. Single payer system might be able to reduce the rate of the rising healthcare cost in the country, as the load on citizens of the heavy premiums will be considerably reduced. Healthcare will become affordable, thus increasing coverage and reducing inequalities in the healthcare system. Single-payer system will be a big positive change in the American market.

Long-term expectation and objective

In a health care setting, need based innovation will be the need of the hour to find a cure for a particular disease or condition. While discovery based innovation will occur as a miracle that will help in the evolvement of overall healthcare sector.

Access management controls are incorporated in the Healthcare industry to protect the patient’s data from any kind of cyber attack. Access management controls monitor the patient’s data and limit accessibility of information. These access restrictions require user authentication at various layers. Also these control mechanisms block any suspicious data activity over the healthcare network. Web uploads and data attachment is strictly monitored through these mechanisms. Access management controls are totally inclined to work for the data sanctity and protection of patient’s information.

Every individual has a medical history. Also every illness has a set of primary symptoms. With the inclusion of predictive analysis in healthcare, the current illness of the patient can be diagnosed based on his medical history as well as the current symptoms.

Predictive analysis in healthcare can be very beneficial:

• It increases the accuracy of patient’s diagnosis
• It provides the doctors with the overall medical history of the patient within seconds
• Insurance costs can be easily calculated using this model