In today’s healthcare world, with the present economy, patients are always going to question one thing, and that is healthcare funding. Things like treatment for their pre-existing conditions, and even minor circumstances, such as the cold or flu are something people are going to want to know the price to. These types of questions are in relation to healthcare economics. The meaning of health economics is the science that deals with the production, distribution, and consumption of good and services, or material welfare in healthcare. Because healthcare is always evolving there are some factors that have to do with the change, and those are types of medical care and technological developments in the industry. An example in the change in medical care is the quality. Now a day, people can be treated for any type of disease and as long as their insurance covers the specific service then they have a higher chance of being cured. In addition machines we have in clinics and hospitals also increase also affect health economics because most organizations always want to have the latest technology so their quality of healthcare maintains at a high level, however having this also increases their expenses. This paper will further on discuss evaluating the history of healthcare economics and its evolution along with how cash flows within the economic system
Health care insurance is something that healthcare economics is based off of. Before when health care was as big issue and an actual business, people would use their own personal money to pay for treatments, services and other healthcare operations. Now a day, insurances pick up the bulk of the services and the consumer pays a copay or co-insurance, this is why cash flow in health care evolves around insurance. The flow of funds is a way of following the trail of money to the consumer to the organization and 3rd party insurances have been doing this for over 60 years. Within that 60 years span things have...