US Healthcare Industry

US Healthcare Industry Rising Cost in Healthcare Industry in America Dec 20, 2018 in Economics Introduction The United States of America healthcare industry can benefit immensely from economic analysis concepts especially those related to microeconomic evaluations. In this healthcare system, the healthcare customers are always purchasing a service that they comprehend little about with a third-party payment structure due to the possible uncertainties (Cameron, 2013). This paper puts up a discussion on the current increase in the cost of health care within the United States of America as a formidable issue within the industry. Overview of the Current Issues in US Healthcare In regards to the total expenditures of 2013, Americas healthcare industry spent about $2,800 billion in healthcare related products and services. The use of funds in this sector is attributed to 64 per cent of the aforementioned amount being spent on hospital, physician fees, as well as on drugs and other related pharmaceutical products. The sources of funds are divided in a 50-50 per cent public and private basis (Cameron, 2013). Only about 11 per cent of the money is sourced from out-of pocket given that the major mode of payment is through third party agencies. Since the early 1900s, the trend of expenditure has continued to increase tremendously and a future forecast stipulates further increase. There has been a dramatic paradigm shift from the out-of-pocket payment system to the third party model; insurance agencies. Both the nursing home care and home healthcare are the potential growth areas (Cameron, 2013).