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2 pages/≈550 words
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MLA
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Health, Medicine, Nursing
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Essay
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English (U.S.)
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Factors that Affect Health Expenditure (Essay Sample)

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Factors that affect health expenditure

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Demystifying he drivers of expenditure within the healthcare system
Expenditure and allocation of resources in the health care system are dependent, so much on a variety of impetus. One of the factors that plays a critical role in the determining how resources are allocated is the workforce. The size of the workforce and its organization will play quite an important role in showing how much will be spent in this field. The payment systems also have quite a heavy toll on the expenditure that can be incurred on the healthcare system. There are still other factors such as physical integration and technology that determine the cost incurred in the health care system. A complete analysis of all these issues will reveal how they determine how the healthcare allocates resources and prioritizes issues.
One of the major drivers of expenditure in the healthcare system is the workforce. Ideally, the capacity that the workforce carries will determine greatly the amount of resource that will be allocated to the particular sector. Most of the resources that are allocated to this sector are I terms of the salaries. While looking at the Australian healthcare system, it is evident that there has been an increase in expenditure on the workforce from the year 2012. This has been attributed the increasing volume of the workforce. As well, a good number of this workforce has formal training which eventually puts more pressure on the healthcare system to apt their salaries (Aihw.gov.au, 2014). This is to say that the expenditure and the allocation of resources on healthcare are in one way or another dependent on the workforce.
The payment system is another factor that plays a vital role in determining the cost incurred in the healthcare. Over the years there have been debates most profound in the senate on how the federal expenditure on healthcare can be reduced. One of the debates has been around the issue of the payment system. It is argued that the rectification of the payment system will go a long way in making sure that the expenditure on healthcare is reduced(Effectivehealthcare.ahrq.gov, 2014). Nevertheless, there has been a keen interest in the quality of service provision. In this case, the rectifications on the payment system should be careful not to jeopardize the quality of healthcare. The federal government estimates that the biggest percentage of expenditure in the healthcare system comes about due to the poor payment system. That’s to say if the payment system can be corrected then expenditure is expected to reduce.
The integration of physicians in the healthcare system, has both the positive and negative effect in the expenditure and the cost incurred. On one hand, the integration can be a way of reducing expenditures by the improving of care coordination as well as efficiency. In this way less will be spent on the services and payments made to the physicians and in this way the expenditure can go down. But on the flip side of the coin this can be one way of increasing expenditure in the sense that; more incentives and higher payments will be required for the services that are provided in the outpatients (Baker, 2014). It is then a tight balance that needs to be maintained in order to scale this stair properly.
In addition, technology is one of the major drivers of expenditure in the healthcare system. One of the ways in which this comes about is that the resources that are required to set up the system within the healthcare system are quite costly. At the same time, the requirements for integration of this system can quite be costly. Also the manpower to maintain the kind of technology and the costs associated with their training are a thing to ponder on. But looking at the long time benefits brought about by technology, one will agree that it has a net effect of reducing expenditure. Thus, it is wort...
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