A Nursing Perspective Essay

Factors contributing to rise in health care costs and the effect of Managed Health Care

One of the factors that have led to rise in the cost of medical health care is poor management, which has led to elevated administrative costs. The induced high costs of operations in the health care services has led to increased costs of provision of medical services to patients, thus leading to rise in overall health care costs (Larson & Muller, 2003). Managed Health Care has negatively influenced this factor by introducing a series of follow up programs, which have in turn increased administrative costs. Although some of these programs have enhanced service delivery and management; they require extra operation expenses which contribute to increase in cost of medical service provision (Larson & Muller, 2003).A Nursing Perspective Essay Sample

Another factor that has contributed to the rise in costs of medical health care is aging of the population. The aging population has increased demand for medical services, and this has led to increase in the cost of medical care. The Managed Health Care has positively influenced this factor through provision of cost sharing incentives for aging population. In cases where health care provision costs are too high, the Managed Health Care intervenes and intensively manages the situation by contracting with respective providers of the health care services (Larson & Muller, 2003).  A Nursing Perspective Essay Sample

Prescription drugs and growth in technology are also among the factors that have led to increased costs of medical care services. Inflation has led to high cost of acquiring prescriptive drugs, adopting current technology, and general increase in the cost of medical services (Larson & Muller, 2003). The intervention by Managed Health Care has enabled provision of economic incentives for the management to adopt affordable technological procedures/systems, and acquire effective but less costly medical prescriptions/drugs, and other forms of care. This step has positively impacted on the cost of health care services through reduction of medical bills (Larson & Muller, 2003). This is appositive influence that has led to reduction in the costs of health care services.