Health Economics - How Reforms Can Be Brought in the Health Sector - Research Paper Example

of the of the number Health Economics Table of Contents Table of Contents 2 Health care is a debated topic in the current decade and the discussion over today's health care system revolves around the views that consider “health care services as commodities” (Jennings and Hanson). These debates involve discussions about how reforms can be brought about in this sector. This point of view takes care of the economic objectives of the reforms in the health care system but obscures the other portion of the purposes of providing efficient health care: the morally vital attributes of the medical profession and the health care provision. If the medical profession is viewed as health care service being a public or civic activity, it can capture the true purposes of the service. The ethical practices of health care is a strong debate in this field of study and incorporates both the commercial aspects as well as the social and ethical aspects of health policies, health reforms, and moral medical practice meaningfully (Jennings and Hanson). 3 Introduction Health care is a debated topic in the current decade and the discussion over today's health care system revolves around the views that consider “health care services as commodities” (Jennings and Hanson). These debates involve discussions about how reforms can be brought about in this sector. This point of view takes care of the economic objectives of the reforms in the health care system but obscures the other portion of the purposes of providing efficient health care: the morally vital attributes of the medical profession and the health care provision. If the medical profession is viewed as health care service being a public or civic activity, it can capture the true purposes of the service. The ethical practices of health care is a strong debate in this field of study and incorporates both the commercial aspects as well as the social and ethical aspects of health policies, health reforms, and moral medical practice meaningfully (Jennings and Hanson). These are two rival notions that underline a major portion of the contemporary normative questions about professional medical practices and the health care system. Health care products and services have several distinct characteristics that allow them to be considered as normal economic conditions. The price of these products and their availability are specific characteristics making them similar to other normal economic commodities. Although these characteristics are advantageous for some consumers in the US that have coverage of health insurance and also for those that manufacture medicines and medical equipment, the specificity of the characteristics places other parties, such as uninsured consumers and the government, at a disadvantageous position. Racial disparities play an important role in the status of the health care system in the US and are considered as an unrelenting and disconcerting problem for the country. Health status of the average population in a country reflects the economic health of the country, and it is a serious problem since ample policy efforts have yet not been able to rectify the situation. On the contrary, African-Americans and other ethnic and racial minorities are often reported to receive less than the desired level of care. The quality of medical attention also differs from the care received by their white skinned counterparts (Jha). This makes the situation worse. The hypothesis made in this context is that racial disparities can be eliminated and a better health care system can be established in the States. The questions studied through this research are: what causes these disparities to exist and what steps might be taken in order to do away with the gap and reduce the disproportion in the country’s health system. The study has been carried out by collecting secondary data and making qualitative analysis of the same. Secondary resources available on online and print media such as books, journals, newspapers and online articles, have been used for gaining an in-depth understanding of the topic under discussion. The qualitative method of data analysis has allowed the researcher to investigate the issue in depth and relate the integrity of the social and economic aspects of the problem. Finally, the researcher has maintained a personal timeline prepared by her, which has helped to complete the research successfully. It has been found that unemployment rates among the African Americans are almost double of the Caucasian Americans. Average earning of an Afro-American man that has full time employment is nearly 72 percent of the income of a comparable Caucasian man (Rodgers). Children of African American origin are “3 times more prone to live in poverty than Caucasian children” (“Children in Poverty by Race (Percent) – 2011”). It has been concluded that health care disparity can be reduced only by reducing the racial discrimination within the economy and by allowing the less privileged to be merged with the mainstream American population. Literature Review Two chief theories have been considered as most fundamental to the explanations provided for the disparities existing in the health care system in the US over the last decade. Researchers have referred to these theories for addressing this problem and recommend a plausible solution to them. The first theory focuses on the matter of “cultural competence” in the country. There is a long history of bias against the black skinned Americans and this history plays a crucial role in shaping the current day mentality and the actual status of the health care system existing in the country. The second theory pertains to the place of receiving health care. The quality of treatment is determined by the place from where the treatment is received (Jha). Ample evidence can be collected to support this proposition. A prior research conducted by Jha has led to the outcome that care for the black patients is intensely concentrated within a small group of hospitals and that these places are found to be generally providing lower quality of health care to all patients that are admitted there (Jha). Healthcare is now treated as a “commodity” in the United States. The economic impact of this fact is that the affluent class can access health care facilities at the maximum desired level while the disadvantaged section of the society and the marginalized are denied access to even the necessary level of care (Pereira 414). Nearly two-thirds of the American population is covered under health insurance offered by their employers. The elderly people are eligible for the benefits of the Medicare program. However, the remaining proportion of population comprises millions of American citizens that are not covered under any health insurance. A good majority of these people belong to the minority races. They often are denied insurance coverage by their employees or belong to a low income group and cannot pay the payroll tax for receiving the benefit (Pereira 415). Hypothesis Testing Experts suggest that the many gaps in the system of providing care to the population occur due to poor channels of communication between the service providers and their patients. The theory of cultural competency claims that lack of trust among the patients is a result of the long period of injustice that these people have been subjected to. Ultimately, this theory comes with an approach to the dealing with these health disparities; it requires higher levels of effective training to be imparted to the staff of the hospitals and the health care units that cater to the patients of minor races in all parts of the country. The second prevalent conjecture about racial disparities existing in the system of health care points out that “the site of care” (Jha) matters a lot in determining the level of care delivered to the patients. Black patients show a higher tendency to be admitted to hospitals that generally do not have technologically advanced equipment or highly skilled staff, due to which they are not capable of giving high quality of treatment. The knowledge possessed by them is often not updated, due to which they do not provide good quality of medicines. This theory comes with a different approach to the dealing of this issue. It proposes a different set of resolutions; the government has to focus on the “minority-serving” health care providers and improve the technology used and the process in which care is provided. Despite the fact that the United States is one of the most developed countries and sets leading examples of advanced scientific innovations in the field of science and medical technology, there is a significant lag in the area of preserving “the basic human right” (Pereira 414) pertaining to the field of healthcare. USA falls behind many industrialized nations of the world in this respect. A big proportion of American citizens are deprived of proper healthcare facilities. At present more than 41 million citizens of the country do not come under any form of health insurance. Approximately 16 percent of the population that belongs to an age group less than 65 years is not insured. Currently biotechnology takes up a major portion of the market share and is responsible for most modern developments in the medical field. Technological innovation has helped to bring new healthcare facilities and also allows making these facilities more affordable to the common mass (Maiwald 4). The economic status of the concerned population relates to the disparity in the level of facility received by the population, and racial discrimination plays a significant role in the determination of the economic status of the population groups. African-Americans are subjected to maximum segregation in the society in terms of residential and employment opportunities. Residential segregation causes a dominating effect that leads to the healthcare disparity. Since these people often get low paid jobs, they can neither afford to live in very hygienic living conditions nor can they afford to buy proper food. Therefore, a large number of these people suffer from poor nutrition. Families of the Pacific Islander, American Indian/Alaska Native, Native Hawaiian and Hispanic origin are found to be poor at a higher frequency than Caucasian families living in the USA (“Ethnic and Racial Minorities & Socioeconomic Status”). In 2011, 23 percent of children of USA belonging to non-Caucasian families lived in poverty (“Children in Poverty by Race (Percent) – 2011”). Within this group the maximum poverty was faced by the black or African-American children. In 2010, under the rule of President Obama the Affordable Care Act (ACA) was passed. The ACA was aimed at dramatically expanding the insurance coverage and introducing changes to the functioning of the federal government. The government included several provisions to increase the revenue of the Social Security Fund so as to be able to pay for this expansion (Cooper). However, recently the budget projections for the year 2014 shows that sequestration would lead to large scale spending cuts that would affect the Social Security adversely (Crutsinger). This is highly debated since there is strong justification in maintaining the level of spending in this sphere at a high level, besides changing common mentality about an inclusive healthcare system in the US. Only then can the hypothesis that racial disparities can be eliminated and a better health care system can be established in the States be successfully accepted. Conclusion The discussion shows that the major cause behind the health care disparity in the American population is the lack of communication, infrastructural backwardness and racial discrimination in the social and economic activities within the country. The problem has been aggravated by a low level of sensitivity of the society to the rights and cultural disparities occurring between the white skinned and black skinned Americans. Disparity in care is mostly created owing to the hospitals at which these patients receive care. Efforts on the part of the government to improve the social and technological factors would lead to betterment of the situation and reduce healthcare discrimination. The federal government already spends a major amount on healthcare; however, a greater redistribution of the resources is necessary and more inclusive policies are to be implemented to make the redistribution more effective. Works Cited “Children in Poverty by Race (Percent) – 2011.” Kidscount. The Annie E. Casey Foundation, 2013. Web. Jun. 14, 2013. Cooper, Zack. “Healthcare: The US Presidential Policy Debate.” Vox. VoxEU.org, 2012. Web. Jun. 14, 2013. Crutsinger, Martin. “Obama Budget: Trim Social Security, Tax Wealthy.” Yahoo. The Associated Press, April 10, 2013. Web. Jun. 14, 2013. “Ethnic and Racial Minorities & Socioeconomic Status.” American Psychological Association. American Psychological Association, 2013. Web. Jun. 14, 2013. Jennings, Bruce, and Mark J. Hanson. “Commodity or Public Work?” CPN. CPN, 1995. Web. Jun. 14, 2013. Jha, Ashish. “Racial Disparities in Health Care: Justin Dimick and Coauthors’ June Health Affairs Study.” Health Affairs. Project HOPE: The People-to-People Health Foundation, Inc., June 4, 2013. Web. Jun. 14, 2013. Maiwald, Sebastian. The Entrance in Foreign Markets in the Field of Biotechnology and the Consideration of Socio-Cultural Particularities: Using the Example of SeaLife Pharma. Munich: GRIN Verlag, 2010. Print. Pereira, Anita. “Live and Let Live: Healthcare is a Fundamental Human Right.” Connecticut Public Interest Law Journal 3.2 (2004): 414–435. Print. Rodgers, Williams. “Understanding the Black-White Earnings Gap.” Prospect. The American Prospect, 2008. Web. Jun. 14, 2013. Read More