Healthcare Delivery System: Why Healthcare is Expensive

Comments · 230 Views

Think about the following scenario: Your friend tells you he is angry as he thinks the local hospital is making huge amounts of money at the expense of the patients and the community. How would you respond to him? Answer this question and support your decision in a paper (APA format). Post

The article from the series of the essay on nursing profession.
Many people are perturbed about the medical fees that hospitals charge upon individuals who seek health services. Very often, they do not know that it is expensive to manage the healthcare system. If my friend thinks the local hospital makes much money at the expense of patients and the community, I would not agree. I would tell my friend that the hospital needs money to plan the annual and capital budgets, which are in most case very costly.

First, I would tell my friend that the hospital is a business establishment that must plan its income and expenses. Then, I would explain him the importance of monitoring revenues and expenditures. The annual budget costs of the hospital include salaries and non-salary items, such as personal emoluments, on-the-job training of staff, and scholarships. Some of the additional expenses include maintaining medical equipment, buying drugs and pharmaceuticals, non-pharmaceutical supplies, and, sometimes, legal fees. I would also tell my friend that drugs also cost much money leading to the overall rise in the costs of health services because pharmaceutical companies need more money to continue with the researches to make more discoveries (Squires, 2012). Thus, his argument would be misplaced.

Secondly, I would explain him that hospitals need money for the capital budget. The money would help buy major equipment or implement significant physical changes, such as renovations and building new constructions. The investment in medical equipment and technology is an expensive venture that requires big funds. If the hospitals fail to invest in equipment, it will lead to stagnation in the growth of the establishment and its research potential (Andel, Davidow, Hollander, M., Moreno, 2012). Additionally, I would explain him that these costs help the hospital reach its long-term goals and the only way the hospitals can receive the necessary funds is through patient fees.

Consequently, medical services are expensive given the costs required to run the hospital. The hospital management needs money to pay their workers, invest in equipment, and keep other operations running without problems. Thus, the argument of my friend that the hospital is making more money at the expense of patients and the community is not valid.



Andel, C., Davidow, S. L., Hollander, M., Moreno, D. A. (2012). The economics of health care quality and medical errors. Journal of health care finance39(1), 39.

Squires, D. A. (2012). Explaining high health care spending in the United States: an international comparison of supply, utilization, prices, and quality. Issue brief (Commonwealth Fund)10, 1-14.