How the Economy Is Affecting the Healthcare Industry

We are currently in a transition where healthcare is now required by law and in doing so, the government has provided a means to strengthen our economy while improving our world class healthcare sector. You may not realize just how closely our healthcare industry is tied to the economy, but countries with economic strength have a healthier population. Life expectancy increases by 10 percent in nations with an annual economic growth of 0.3 percent. A nation’s spending power on developing healthcare systems reflects its populace’s medical needs and economy’s growth.

Healthcare Benefits in Times of Recession

Consider that healthcare spending accounts for more than 17 percent of our gross domestic product. In times of economic downturn, rarely did employers restrict healthcare eligibility programs. Instead they changed policies and adjusted the cost-sharing provisions to reduce business costs. With access being impeded and unaffordable, our entire economy feels the brunt of this contraction.

Charitable Giving

Healthcare-based charities receive one in every five donations. This is drastically impacted in times of recession, when the IRS estimated a 14 percent drop in donations from one year to the next. Not-for-profit organizations have to more carefully pick and choose all those they can and cannot help in times of economic hardship. Trickling down, this impacts healthcare access for those in need and impedes scientific research and advancement.

Universal Healthcare

One of the most recent law changes, Universal Healthcare, mandates businesses provide healthcare to its employees. Barring an exemption, U.S. citizens will be penalized for not having medical insurance. The cost increase to businesses will force them to increase prices of their products and services with some small businesses being forced to close their doors due to narrow margins.

Healthcare Drives the New Economy

With over 10 million new entrants into the healthcare system in the last year, healthcare’s infrastructure is rapidly shifting focus. Becoming the leader in our economy’s continued growth, the healthcare provider environment is the most competitive it’s ever been with priority changing gears from a volume-based industry to an emphasis on quality of service provided. Our economy is reaping the benefits of innovation that transcends the healthcare sector and reaches into other industries as well.

Growth and Change

The American economy is a rapidly changing environment since the implementation of the Universal Healthcare Act. The relationship between healthcare and economic forces grows in complexity with a new found ease of access, utilization, quality of care, and costs. Entering this new era of economic growth where healthcare accounts for nearly 20 percent of our total GDP is clear proof of codependency between our nation’s financial growth and an individual’s access to healthcare.

If you’re looking to take your stake in the healthcare industry, call Quest Consulting Services to learn more about medical billing business opportunities.

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