Economic Terms and Health Care History
November 28, 2011
There are many terms that are used in Healthcare History, some of which have been used since the beginning of time and some that have been adapted over the years with the never ending changes in healthcare. In the next few paragraphs we will learn when these terms began and where they take place. When one learns the history of healthcare and the fundamentals of the economic terms they are able to better understand just how the system works. The terms that we will learn about in the paper are as follows: economics, supply and demand, microeconomics, macroeconomics, elasticity, inelasticity, ...view middle of the document...
There were different plans done in several different places by nonprofit hospitals to strengthen the income and increase patient care.
As the demand increased for hospitals in the early 1900’s and the economy was looking for a way to survive and keep their heads above water they introduced Blue Cross and Blue Shield hospital insurance. The program was founded in 1929 by a group of Dallas teachers that contracted with Baylor University Hospital at which they would provide 21 days of hospitalization for a fixed $6.00 payment. Over the years BCBS has grown to be able to offer many different types of medical insurance to billions of consumers around the world. The supply and demand started to take over and grow tremendously with commercial Insurance companies now trying to enter the market. They were scared at first and would only offer insurance to certain people but once they seen how Blue Cross had went from around 10,000 in
1940 to almost 130,000 in 1960 they wanted to jump on the wagon.
When dealing with microeconomics we are dealing with economic decisions that are made at a low level. Microeconomics is used by individual businesses or firms to make decisions that involve pricing or say cost relationships to the place of business and how this pricing is going to work for the business. Whereas, macroeconomics is the big picture of what is going to happen to the economy, the effects that the cost of something is going to have both on the economy and on the consumer.
Elasticity in healthcare...