October 20, 2008

The Economy and Healthcare: Part I of II

Dean Halverson

Current economic crisis have put burdens on the bank accounts of the entire country, but what about the country’s health? Costs are on the rise just as finances get tighter for most consumers.

According to a survey by the Rockefeller Foundation and Time Magazine, as published in the Washington Post, 25 percent of the respondents did not go see a doctor because of cost in the last year. Up from 18 percent in 2007, consumers clearly feel financial burdens from the financial and healthcare industries. But what does this really mean?

In tough economic times, more people lose jobs, causing less people to have health insurance. This group avoids spending money on healthcare because they have to pay the entire cost themselves. And, consumers dealing with personal budget difficulties avoid the costs of care, even if they are insured.

One effect is that the demand and usage of low-cost care increases, such as retail clinics and urgent care facilities. Or, consumers just wait it out. But more patients avoiding check-ups and waiting until they are really feeling sick costs more for both parties. And, avoiding regular appointments hinders prevention methods, ultimately having negative, and costly, health effects on the patient.

What does this mean for providers? Check back on Wednesday, October 22nd to find out.

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