Introduction
The cost of healthcare has been on the rise for several years, impacting individuals, hospitals, insurance companies, and society at large. The increase in healthcare costs has resulted in financial strain, reduced quality of care, increased stress on healthcare workers, insurance coverage challenges, regulatory changes, accessibility barriers, and health disparities. This article explores the various impacts of the increase in healthcare costs and the potential solutions that can mitigate these impacts.
Assessment of Increased Financial Costs
The financial impact of the increase in healthcare costs affects different stakeholders in various ways. Individuals, who are responsible for paying for healthcare out of pocket, face increased expenses. Hospitals face higher operating costs, particularly in providing costly treatments and purchasing medical equipment. Insurance companies face higher claims expenses, which can lead to higher premiums for policyholders. According to the Centers for Medicare and Medicaid Services, in 2019, healthcare expenditures in the U.S. amounted to $3.8 trillion, accounting for 17.7% of the gross domestic product.
Quality of Care
The increase in healthcare costs may impact the quality of care provided. Cost-containment measures such as lower reimbursement rates and staff shortages may lead to decreased quality of care. Lower quality of care can have negative consequences for patients, from incomplete diagnoses and inadequate treatment to increased healthcare costs and longer hospital stays. In addition, reduced quality of care can lead to decreased patient satisfaction and trust in the healthcare system.
Increased Stress for Healthcare Workers
Healthcare workers are at the forefront of caring for patients, and the increased cost of healthcare might impact them negatively. The industry is a high-pressure one that requires precision and accuracy, not just in providing care but also in documenting their work. Healthcare workers, including nurses and physicians, may experience increased stress, fatigue, and burnout due to the increase in workload and pressure from patients and management as well as increased documentation requirements. A survey from Medscape shows that around 42% of American physicians reported feeling burned out in 2020.
Impact on Insurance Coverage
The increase in healthcare costs can impact insurance coverage, reducing the number of services covered under policies and increasing premiums. This can make it challenging for individuals to access healthcare when they need it the most, leading to financial hardships and lack of access to essential treatments. People with low incomes or those without insurance are typically most affected. The Kaiser Family Foundation reported that 26.1 million people in the U.S. lacked health insurance in 2019.
Regulatory Changes
The increase in healthcare costs may lead to regulatory changes, requiring healthcare providers to adhere to stricter standards and guidelines. This can limit healthcare options for patients and increase compliance costs for healthcare providers. Regulatory changes can also lead to the reduction of healthcare services in certain areas and cause an increase in costs. For instance, when Medicare reimbursement rates are reduced, some providers may opt to stop offering required treatments, limiting the scope of care patients may receive.
Accessibility to Healthcare
Access to healthcare can be a challenge in marginalized and low-income communities. As healthcare costs keep rising, these communities may have less access to affordable care. This can increase the risk of diseases spreading, making these communities even more vulnerable. Additionally, low-income communities often have limited access to specialists, which can make receiving timely and adequate medical care a challenge. In addition, some people may avoid healthcare altogether, increasing long-term health costs and risking serious complications. For example, lacking access to timely prenatal care may increase the likelihood of complications during pregnancy and birth.
Telehealth
Telehealth, the remote delivery of healthcare services via technology, is an increasingly viable way to manage the impact of rising healthcare costs. Telehealth can make the delivery of healthcare services more accessible and less expensive, particularly for those in rural areas or with mobility limitations. Telehealth can also reduce healthcare workers’ workload by allowing them to work from a distance, increasing their overall productivity. Furthermore, telehealth can provide follow-up care in a way that supplements in-person visits, increasing patients’ overall health outcomes. Telehealth is becoming increasingly popular, with 7% of Medicare beneficiaries using telehealth services in 2016.
Conclusion
The impact of increased healthcare costs is significant in various domains. The financial impact on individuals, hospitals, and insurance companies can lead to reduced quality of care and increased stress for healthcare workers. Regulatory changes can limit healthcare access and quality of care, and there are potential accessibility barriers. However, solutions such as telemedicine can mitigate the impact of increased healthcare costs. It is vital to recognize the impacts of increased healthcare costs and to work towards accessible, high-quality healthcare for all.