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Rising Healthcare Costs

Healthcare systems around the globe are enormously pressured by the situation of their increased healthcare expenses, which tremendously influence individual people and societies. Adang’s concern reveals that the integration of medical progress and financial stability within healthcare systems is a complex relationship (Adang, n.d.). Baicker and Chandra (2005) drill down on the labor market outcomes as well as how it is influenced by escalating health insurance premiums. They shed light on the possible effects on productivity. This article examines the pervasive impact of the constant rise in healthcare costs, with an aim to break it down to its root causes, and explore its impacts, while also proffering solutions. Spiraling healthcare expenditure outruns economic growth; hence, notwithstanding the efforts to provide equitable access to good quality care, the system becomes endangered. Vulnerable population is exposed for higher costs, more harmful health consequences which leads to health inequalities. Via this review, the various stakeholders can obtain insights which may ultimately drive sustainable and high-quality healthcare system services in the face of seemingly increasing costs.

Understanding the Factors Driving Healthcare Costs Up

A comprehensive view and deeper understanding of the details of the phenomena which cause the growth of healthcare expenditure is necessary to a sustainable solution of the pressing problem. One of the major factors that foster the increase of medical expenditures is the ceaseless update in medical technology. As is being shown by Brown and Brown (2003), the system for integrating new medical technologies normally carries a greater financial load, and it affects every dimension of healthcare delivery. Byrd and Byrd (2010) present the fact that health informatics technology and its operations in healthcare settings remarkably influences the systems expenses, maintaining that new technologies result in high operational expenses.

Demographic change that shows the increasing dependency on people who tend to live longer is another main factor leading to the increase in healthcare costs. Karlsson, Iversen and Øien (2018) problematize the financial sides of an aging population which implies growth in healthcare services and their costs. This occurs due to the escalation of demand for healthcare services and the factors determining care for elderly individuals. Furthermore, from Hempstead, et al. (2015) there is an significance of demographic trends on the provision of the reimbursements and patient financial obligations which not only pressurizes the provider as well as the patient’s budgets but also signifies the effect that arises on both ends. These transformations thus call for strategic thinking, resourcing, and alignment of health care initiatives with emerging requirements of aged populations.

Besides that, the socioeconomic factors are among the leading social determinants of health, respectively, mainly. Inequality in the income, education and health care provisions leads to poor equity in the health outcomes and health care costs. Chang and Gibbons (2008) opine that the weaknesses in the healthcare system, such as the fragmented care and inadequate coordination, are the embryos of disparities in healthcare and upsurge in general healthcare costs. Furthermore Sassi (2003) deals with dilemmas that often arise in a situation where there are limited resources for healthcare interventions, that has ethical and practical implications about how to allocate health resources maximally. It is of great importance to begin to solve the issues of social and economic divide together with the inefficiencies of healthcare system in order to bring down the costs and achieve equal level of care for all.

Stakeholders Impacted by Rising Healthcare Costs

The consequences of the increasing costs of healthcare not only refers to the players in the health care system but they also bear different burdens because each has a certain task to do. They are the patients who have become the most vulnerable stakeholders being stressed financially by the high cost they have to pay for medical services and medications they need. The paper by Ganguli, Thompson, and Ferris (2017) brought the lives of high-cost patients to light. It is clear from their research that such patients are experiencing tremendous financial burdens and are unsure about future medical costs. The problem of rising healthcare costs may be particularly difficult for people with chronic diseases or with limited personal resources, as this can influence their medical decisions (for example, treatment adherence) and access to needed care.

Healthcare personnel too are impacted directly, and through time-consuming pa