Article Reading: The Economic Downturn and Its Impact on Hospitals

Article Reading: The Economic Downturn and Its Impact on Hospitals

Introduction

United States is the largest and most diverse society on the globe. It spends almost 2 trillion dollars every year on health care, which is one in every seven dollars in the economy. U.S is one of the very few nations where all its citizens do not have medical coverage. Although it spends heavily on per capita on health care, and it has the most advanced medical technology system in the world, still it is not the healthiest nation on earth (Garson, 2010). The current financial crisis has, on one hand, put new challenges for the entire health sector and on other hand, presents itself as an opportunity in which health sector including hospitals and government supported health services can dig up new grounds to determine new means to ensure their survival. In this paper I will be discussing the same concept presented in the article “The Economic Downturn and Its Impact on Hospitals”.

Current Economic Downturn is affecting Hospitals

The current economic downfall is shrinking the available health care resources. Every country follows the curve of the funds for the health sector in economic growth. But the impact is more direct in a free market. In United States, private hospitals are dependent on borrowed money. Since they cannot borrow, the investments are put to an end. U.S. hospitals also give themselves massive bonds to get money. The last quarter of 2008 was therefore the weakest since 1989, with less than $ 1 billion in new bonds expenses, compared with $ 9 billion per month a year earlier. Hospitals in the U.S. finance research and innovation usually with gifts. But the "philanthropic market 'is in recession. The drop is approximately 10%, which is better than stock markets according to some optimists.

Changes in goals and strategies by hospitals

In relation with the changing environment hospitals will have to change their policies in providing medical care to the patients. They will have to keep a balance in their cost and debts. Only those hospitals which are effluent will be able to adopt modern technology in healthcare facilities, as most of the hospitals are dependent on credit, which is becoming not only scarce but also unaffordable in the current economic environment. As the budgetary possibilities become smaller due to lower revenue, this will also decrease health care spending. ...