Healthcare factors behind cost curve and supply curve shifts

From the e-Activity, compare the healthcare-based factors in the issues that you reviewed that, in your opinion, cause the cost curve of healthcare to shift. Provide at least one (1) example showing the manner in which the cost curve shifts in your response. According to AHA, there was a downward trend in health spending growth in 2002 due to a decline in utilization growth and a low price growth.  However, since a resurgence of utilization due to expanded coverage and a strengthening economy, economist are monitoring. developing trends

  • Suggest at least three (3) attributes that cause the supply curve in healthcare to fluctuate. Provide specific examples of each of the suggested attributes to support your response.

The 3 attributes I selected that cause the supply curve in healthcare to fluctuate are:



cost of production: The cost of producing pharmaceuticals in a highly completive market.  (i.e. acid reflux medications)






changes in the general environment: According to AHA, in 2014 more than half of Americans tried to get information regarding out of pocket expenses before getting care primarily those with higher deductibles.






changes in government taxes: Overall hospital prices in Feb. 2015 increased 0.1% that’s 0.4% higher than a year ago.  These changes are actual and expected reimbursements received for services across the full range of payer types.

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