Hospital Care Case Study

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Hospital Care Expenditures and Sources of Funds
The Centers for Medicare and Medicaid services (2012) reported health care expenditure increased in 2012 by 3.7 percent grossing at $2.8 trillion which marked a continued trend of deliberate progression. Hospital care also increased from 3.5 percent in 2011 to 4.9 percent in 2012 grossing at $882.3 billion. This progression was affected by cost and non-cost factors. Other personal health services also progressed significantly such as physician and clinical services (4.6 percent), other professional services (4.5 percent), other health, residential, and personal care (4.5 percent) and home health care (5.1 percent) while prescription drugs (0.4 percent), nursing care facilities and continuing care
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Health Services System displays expenditures for personal health services in 2007. Hospital care has the greatest expenditure percentage at 37 percent followed by physician and clinical services (25.4 percent), drugs and other personal tie at 12.1 percent, followed by nursing home (7.0 percent), other medical products and lastly home health care. This implied that the hospital care is the largest category of personal health services in 2007 (Barton, 2012).
The sources of funds chart for personal health services in 2007 is displayed in exhibit 7.9 revealed that hospital care’s sources of funds totaled $695 billion. Hospital care’s main source of fund was the Federal Government (44.3 percent) followed by private insurance (37 percent), other (4.6 percent) and out-of-pocket (3.3 percent). This implied that the federal government and private insurance were the largest sources of funding for hospital care (Barton, 2012).
The table in exhibit 7.8 shows the distribution of expenditures for personal health services over a period of 47 years from 1960-2007. Hospital care expenditures progressed continuously from 1960 (39.4 percent) till 1980 (47.3 percent) then experienced a decline in 1990 (41.7 percent) till 2007 (37.0 percent). Overall hospital care consistently showed the largest amount of expenditure in personal health services till 2007 despite the decline in expenditure from 1990(Barton,
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Private insurance (49.4 percent) and Federal government (27.9 percent) were the largest funding sources for the Physician and clinical services category which is similar to the hospital care category. However physician and clinical services had larger out-of-pocket and other categories than the hospital care category while the state and local government category for hospital care was larger than the physician and clinical services category. For the distribution of expenditure for personal health services, the physician services category has the largest proportion next to the hospital care category. Unlike the hospital care category, the physician care category’s decline occurred between 1970-1980 and increase between 2007 by a minimal percentage. This indicated that the physician and clinical services category was more unstable than the hospital care category from

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