How Economics Affects Health and Health Care
Economic growth in health care is associated with the longevity and health of everyday lives. This growth affects the health care industry, from the medical professionals who work in the industry to patients who need health care coverage.
Economic growth and downturns impact society. If the economy is increasing, mortality rates decrease. However, if the economy is reversing, mortality rates increase. Today, you'll learn how economics affects health and health care.
Motivation and Investment
With economics having such a significant impact on the health care industry, it can also determine many aspects of health costs. Poor health can have a significant economic impact on households—exhausting their financial resources and even causing debt.
As a result, out-of-pocket payers and those with poor health lose productivity and suffer income losses. It is especially burdensome if there are economic recessions, as affording necessities becomes more difficult.
Positive and Negative Incentives
On a more positive note, a grand triumph in US health is the decline of tobacco use, which has reduced death risks due to smoking-related diseases and illnesses, like lung or skin cancer. The decline in deaths was a result of higher taxes on cigarettes, clean air policies banning smoking in public venues—such as restaurants and workplace environments—and making smoking more expensive.
Medical Equipment Effects
Markets for medical equipment tend to be fragmented and suffer from a lack of transparency and competition. As a result, economics can affect medical equipment sales and services for many medical supplier businesses. So, be sure to find a medical supplier that meets your needs and expectations—it is critical in maintaining positive communication.
If you're looking into renting, financing, or purchasing equipment, or have any questions, visit us at Med One Group. We have served the healthcare industry for over 30 years and can serve any facility nationwide.