Healthcare Costs in the US - Essay Example

Every year healthcare costs have escalated by about thirty-nine per cent in the four years between 1999 and 2003, while the hourly earnings during the same period have escalated by fourteen per cent. This galloping health care costs that are affecting the affordability of health care is the reason for concern. Any control measures need an understanding of the factors that are responsible for the escalation in healthcare costs. According to Ginsberg, 2004, advances in science and technology that have seen a rise in new technologies available to health care, are the prime driving force behind the escalation in healthcare costs. These new technologies have provided newer diagnostic tools and treatments in the medical care of patients. Many of these diagnostic procedures and treatments are much more expensive than the older diagnostic procedures and treatments. An example of this is the expense involved in magnetic resonance imaging, which increases the diagnostic costs significantly when it is employed as a diagnostic aid. Some treatments may be more cost-effective, and lead to less discomfort in patients, but it is these very same beneficial qualities that cause its higher rate of use, leading to an increase in costs.

This new technology is the main culprit in the escalation of healthcare costs. Does that mean denying the use of new technology in health care is the solution to the vexing problem of escalating healthcare costs? The answer is no. For in doing so the benefits of advances in science and technology would be denied to the people. The solution rather lies in the judicious use of new technology in healthcare (Ginsberg, P., 2004).

Healthcare costs cannot be eliminated, and need to be only controlled for, "health interventions are not free, people are not infinitely rich, and the budgets of [healthcare] programmes are limited. For every dollar's worth of health care that is consumed, a dollar will be paid. While these payments can be laundered, disguised or hidden, they will not go away" (Eccles, M., & Mason, J., 2001). Clinical guidelines have started to emerge for the diagnosis and treatment of diseases, to increase the benefits and reduce the harm through inappropriate medical care for patients. The solution to controlling health care costs lies in extending these clinical guidelines from preventing inappropriate care to additionally incorporate guidelines in the use of diagnostic aids and treatments that emerge as a result of new technologies, to prevent their injudicious use, and thereby control escalation in the costs of health care. This would also make the clinical guidelines more comprehensive, by going beyond just the increase in benefits and reduction of harm in healthcare, to address cost issues, which is also a matter of concern in the provision of healthcare to the citizens of the nation (Eccles, M., & Mason, J., 2001).

Escalating healthcare costs need to be controlled. Emerging diagnostic tools and medical treatments, as a result of new technologies, are the main causes of the escalation witnesses in the costs of health care. The means to control health care costs is in the creation of clinical guidelines for the use of emerging diagnostic tools and medical treatments so that they are used judiciously with the cost of health care taken into consideration.