The History and Evolution of Health Care Economics and the Timeline of Funding
In 1965, President Johnson started the evolution of health care economics and the timeline of funding in the United States. The purpose was to provide medical benefits to seniors, aged 65 and above, but later changed to cover the disabled as well. In 1977, Medicaid and Medicare were formed to act as financiers under social security administration. It should be noted that these programs did not cover everyone but only separate groups In the United States, economics of health care has radically changed over the years. Whereas in the past, a great number of individuals filed their health care bills with private funds, currently they do it with insurance companies (Harris, 2011). Whilst some can attribute these changes to the changes of evolution the United States has witnessed since its inception, the key contributing aspects that drive these changes are advances in medical care and technology. In fact, by comprehending the health care economics history, and by identifying the system of flow of funds, financial managers, as well as the entire leadership in the health care, are able to be sufficiently prepared for the future. Besides, it is important to keep in mind that, money is the key factor behind health care economics, and for many years it has played a central part in the development of the US health care industry.
The flow of money is a scheme in which financial administrators are able to follow or direct the funds through the care system of the United States. As mentioned above the initial flow of money have changed drastically for the past years. History indicates that a good number of medical practitioners traded services for non-money items (like cotton, grain, and livestock) as payment, particularly in circumstances where individuals were not able to use money. In fact, these medical practitioners were tradesmen, with the client or patient paying entirely for services rendered (Ulmer & Burke, 2010). Nonetheless, a new system that was efficient had to be implemented in order to assist the American people with access to the medical services.