Custom «Healthcare Economics» Essay Paper Sample

Over the past years, healthcare expenditures continued to upsurge in the hospice care sector. There are numerous cases of funds wasting or misappropriated finances in the industry discussed. However, the issue can be tackled with the help of the adopting new methods for controlling money flow.

Increased Cost of Dying

Economists are concerned about the increased level of spending on patients who are termed as seriously sick. In the process of treating these individuals, there is the unreasonable application of costly technological interventions. Such a tendency causes the wastage of dollars, which could be, in fact, allocated to help those who are not destined to die due to their conditions. Besides, the money could be spent on the hospital-related beneficial projects like sensitization, housing, and education. Experts and economists do not refer to the issue as an increase in the cost of dying but rather as the augmented expenditure at the end of life. Usually, hospice care costs are reflective by nature: they typically assume the difference between terminal conditions when analyzed thoughtfully and defined in a prospective way. What follows is that the costs are regarded as those that represent expenses of the seriously sick individuals. Therefore, there are wasted dollars due to the increased health costs during one’s declining years, when the resources are used for the treatment of the hopelessly ill individuals.

To eliminate the problem, a policy is required. It should reform the expenditure whereby more money should be used for the treatment of those people who can recover. A new procedure to give more precise and reliable health prognosis and discern the ailments according to the type of care is needed. Since the expenditures in hospices are mainly related to the elderly, it is essential to establish more realistic expectations and cost-effective drugs prescriptions (Palmer, 2013). However, future drafted policies should not relegate ill individuals and old patients on the verge of demise.

Unnecessary Services and Procedures

In most hospices, there is the increased wastage of healthcare funds on actually needless amenities created under the pretext of urgencies. Such a tendency is common in hospices where practitioners order numerous processes to show own diligence in diagnosing an individual. Unfortunately, the unnecessary tests and interventions result in excessive expenses and costs to the affected person. The cycle of treatment then requires lengthy procedures, increased amount of medication, prolonged hospice care, and frequent doctor’s visits. Also, there is the issue of overtreatment arising due to the application of additional and less important procedures instead of the standard and less costly ones.

In seeking for a solution to the problem, hospices should be required to enhance the application of generic treatment methods and medications that will reduce the number of finances spent in the sector. Moreover, according to Kaplan and Porter (2011), by understanding the value of healthcare by the practitioners will increase and ensure the effective utilization of the finances.

Other Wastage Sources

Administrative Waste

The intricacy of the process, as well as multiple administrative operations, is accountable for the wastage of billions of dollars annually in the hospice sector. In future, the spending could be reduced if the establishments simplify some of the managerial procedures to save finances and minimize expenditure.

Inflated Prices

The hospice care wastes money because of the inflated prices that are facilitated by the lack of openness, limited alternatives for patients, stringent guidelines regarding facilities, and insurance imposed by the health cover firms. In future, such sources of needless expenditure can be controlled through the implementation of policies that advocate for the transparency in health care institutions and offer the patients alternative treatment options. To avoid such expenses in future, individuals can enroll in a healthcare plan (American Nurses Association (ANA), 2013). It might be beneficial for them and healthcare industry in general.

Poor Prevention Tactics

Among the examples of wasted finance in healthcare, there is also the reduced number of prevention tactics used in the hospice care. The issues arise as a result of a practitioner assuming the risk to the affected individuals. The wastage can be diminished by encouraging early preventative interventions.