Keeping Cost under Control - Essay Example

Treasury statistics reveal that the healthcare industry consumed a total of $2.7 trillion due to the overwhelming demographic size of the country alongside aging groups. Despite the massive budgetary allocation for the sector, the increase in cost has slowed down. The latest investigation shows that the Affordable Care Act has further improved the care quality courtesy of pay for performance programs. Strengthened primary care, pioneer Medicare payment, performance, as well as care coordination, also contribute to the success of slowed down cost growth (Rosenbaun, 2011).

In a comprehensive project such as the provision of healthcare in America, it is imperative to use a break-even analysis. Break-even analysis gives the government another angle of service provision without necessarily focusing on the profits made (Finkler, Ward & Baker, 2010, p. 78). The government provides healthcare to its citizens at optimal cost without compromising the quality and efficiency of the services. To achieve break-even, fixed costs for medical staff must not change (Pear, 2014). However, despite the government increasing the volumes of the healthcare consumers, and the medical staff’s number and salary remain constant. Therefore, each medical staff must be ready to attend to a larger number of patients than before.