Economic Terms and Health Care History 1 
Economic Terms and Health Care History
Miriam Jamero
HCS/440 Economics: The Financing of Health Care
March 3, 2015
Shawishi Haynes
Economic Terms and Health Care History
The evolution and history of health care economics have transformed tremendously during the course of our country’s history. These changes can be contributed to the evolutionary growth in the United States since the beginning but it is also because of the continuing advances in health care and technology such as diagnostic procedures and pharmaceutical. As in any business, health care was moved forward and changed with money as the driving force to make profits and sustain in business. The health care industry has to find a way to thrive and also make sure people are getting proper and needed care to continue moving forward while keeping the nation healthy.
According to Getzen (2013), “Economics is the science that deals with the production, distribution, and consumption of goods and services or the material welfare of human kind.” (p. 2). History shows that back in the 1800s and 1900s many doctors would exchange services for non-monetary things like livestock, cotton, grain, and other as forms of payment if that person was not able to pay for the services rendered. When America started to progress in technology and other influences, such as in World War I, World War II, and Depression, a method of obtaining medical services was put into aid for the American people. The supply and demand of doctors to patient in the 1960s makes the government reconsider and help with education to get more people in health care. During this time, there were also issues with getting insurance to those who don’t work, like the elderly because of costs. The use of Medicare and Medicaid become available to the public with the law being signed by President Johnson. As Drake noted, “The final phase in the development of the medical care market began around 1980, when the over-supply of providers had grown so large
Miriam Jamero
HCS/440 Economics: The Financing of Health Care
March 3, 2015
Shawishi Haynes
Economic Terms and Health Care History
The evolution and history of health care economics have transformed tremendously during the course of our country’s history. These changes can be contributed to the evolutionary growth in the United States since the beginning but it is also because of the continuing advances in health care and technology such as diagnostic procedures and pharmaceutical. As in any business, health care was moved forward and changed with money as the driving force to make profits and sustain in business. The health care industry has to find a way to thrive and also make sure people are getting proper and needed care to continue moving forward while keeping the nation healthy.
According to Getzen (2013), “Economics is the science that deals with the production, distribution, and consumption of goods and services or the material welfare of human kind.” (p. 2). History shows that back in the 1800s and 1900s many doctors would exchange services for non-monetary things like livestock, cotton, grain, and other as forms of payment if that person was not able to pay for the services rendered. When America started to progress in technology and other influences, such as in World War I, World War II, and Depression, a method of obtaining medical services was put into aid for the American people. The supply and demand of doctors to patient in the 1960s makes the government reconsider and help with education to get more people in health care. During this time, there were also issues with getting insurance to those who don’t work, like the elderly because of costs. The use of Medicare and Medicaid become available to the public with the law being signed by President Johnson. As Drake noted, “The final phase in the development of the medical care market began around 1980, when the over-supply of providers had grown so large
References: BlueCross BlueShield Association. (N.A.) Blue Beginnings. Retrieved July 31, 2011 from: http://www.bcbs.com/about/history/blue-beginnings.html Getzen, T. E. (2013). Health Care Economics and Financing (5th Ed). Hoboken, NJ: John Wiley & Sons. Reisinger, A. L. (1995). Book reviews -- reforming the health care market: An interpretive economic history by David F. Drake. Political Science Quarterly, 110(2), 328. Retrieved from http://search.proquest.com/docview/208264480?accountid=458