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As you learned in Week 1, health care spending is growing faster than overall growth in the economy (as measured by GDP) and by 2026 is expected to consume 20 percent of GDP. In Week 2, the article by Hartman (et. al.) states that “the trade-offs required to finance health care spending have become increasingly challenging for both private and public payers.”
Given what you have learned from the course material in Week 1 and 2, discuss these trade-offs and how to evaluate them from an economic perspective.
Specifically, do the following:
From an economic perspective, explain why health care spending cannot grow greater than overall growth in the economy for an extended period of time without adverse consequences.
Identify what economic constraints overall and in the healthcare industry will occur if this happens.
Identify TWO Economic concepts that can be used to evaluate the trade-off between health care and other economic goods and services. In doing this:
Define the economic concept completely
Apply the economic concept to the current issue of rising health care spending and trade-offs
Evaluate the unique characteristics in health care that complicate this analysis.
This briefing report should be at least four double-spaced pages, include a reference page, and cover page. In writing, your report you should rely largely on reference material in the course readings and summary slides in Week 1 and Week 2.
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