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Essay on Downsizing and restructuring in Healthcare Organization
Introduction:
Practically everyone in America uses healthcare, or has a close associate who uses healthcare, in any given year. It is personal and sometimes frightening, but it lengthens our lives and makes them more comfortable and more enjoyable. It is also very complicated and very expensive. About 100 different licensed or certified practitioners, many of whom require substantial amounts of capital equipment, deliver healthcare. On the average, healthcare consumes nearly $4,000 per person per year, about one-sixth of our income, more than education, defense, welfare, pensions, and justice. Some individuals use several tens of thousands of dollars worth of healthcare in a single year.
Such a large expense must be financed somehow; an unexpected burden of tens of thousands of dollars is beyond almost every family's resources. Several insurance-like mechanisms, using employment benefits and both state and federal tax support finance healthcare. The complexity and the financing mechanism diminish the usual market forces that control cost and quality, creating a complex set of social and personal problems.
Forces for Change in Healthcare
In addition to its complexity and cost, healthcare is also rapidly changing. Technology, demography, economics, and politics drive the change, not only as individual factors but interacting to make the rate of change faster. A trip to the doctor's office is noticeably different from a few years ago; a trip to the hospital is even more strikingly changed. Technology develops new drugs, tests, and procedures each year. The population is older and needs more services. These are not new forces. Technological change in healthcare has been important for more than a century, and the population has been aging since public health reforms and immunization campaigns began around 1900. Both change and aging have accelerated in recent decades. Technology is stimulated by the continuing federal support of research through the National Institutes of Health....
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