What microeconomic factors affect the role of U.S. gov't in the health care system - Research Paper Example

The quality and cost problems in the health care system, in United States, can be solved trough establishing a strong leadership from the federal government, and mobilizing and setting up the national priorities. This enhances development and promulgation of the standards in health care. The federal agency carries out these functions while the government designs the payment policies depending on performance standards, investment in information technology, and investment in research to improve the nationwide care (Greenfield 111–121).

Health care in United States consumes a high percentage of gross domestic products, delivers diminishing values and eludes the remedies continuously. The present state of the healthcare represents functional and structural outcome of the historic contradictions that substantially damage the self organizing capacity. The changing political and economic cycles review show risks in the healthcare system. The improvement of quality healthcare in US requires stronger government leadership throughout the healthcare system.

This does not preclude continued existence of the care system. Nonetheless, the strong federal leadership will enhance development and implementation of the strategies in enhancing the value from the government (Leatherman and McCarthy 305–312). The increased concern by the federal government for the costs in healthcare dates back to about fifteen years when accelerated the federal budget and costs on the national health after approval of Medicaid and Medicare. First proposals in health care cost strategies happened in 1970s.

The Nixon administration advised the health policy experts during the health care crisis and proposed regulatory efforts and market policy. Administration envisioned to expand the health care maintenance organizations, HMOs, within five years time and enroll 40 million people in 1976. The