Costs and Delivery Healthcare System Term Paper

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The delivery health care system takes into account the assimilation of physicians, healthcare facilities, together with other medical services with plan to facilitate the provision of the total continuum of medical care for its consumers. In a whole incorporated system, the three fundamental components including physicians, medical facilities and the membership to health plans are counterpoised in terms of equating medical resources with the necessities of patients and purchasers (Coddington, Moore, and Fischer., 1994). One of the key concerns in the present delivery of healthcare is cost. Increasing costs of healthcare has been a major worry in the past number of years, making the United States to have one of the most expensive systems of healthcare. The main objective of this paper is to analyze the different costs linked to healthcare delivery system, and delineate the manner in which these costs impact different populations and how it also affects health care delivery.

Analyze the different costs associated with the healthcare delivery system

The health care sector comprises of a range of clinicians, hospitals, together with other health care organizations, insurance plans together with buyers of health care services, all functioning in different configurations of groups, networks, in addition to independent practices. In its entirety, this is what is referred to as the health care delivery system. Imperatively, numerous costs are incurred in rendering healthcare. The costs associated with the healthcare delivery system can be quantified into direct costs and indirect costs. On the one hand, direct costs more often than not signify the costs linked with the utilization of medical resources. In essence, direct costs are largely delineated as the expenditures that that can be traced back to a particular healthcare visit or practice. Imperatively, direct costs take into account all of the costs that are associated to hand-on or practical patient care and those that can be directly apportioned to a certain kind of medical visitation or surgical case (Finkler and Ward, 1999). There is no overriding foundation for apportioning costs for the reason that they can be directly linked back to the delivery of particular patient healthcare services.

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For instance, the direct costs associated to outpatient healthcare delivery comprise of medication, medical supplies, special ancillary testing, labor time for physicians and nurses, anesthesia, and special equipment (Finkler and Ward, 1999). As outlined by Boccuzzi (2003), more often than not, direct costs signify the costs linked with medical resource utilizing, which comprise of in-patient and out-patient consumption, and pharmaceutical services that are encompassed within the health care delivery system.

On the other hand, indirect costs are fundamental constituents of the costing framework or model. Different from direct costs, indirect costs are the ones that do not have any direct contribution to the production of one particular service. It is imperative to note that they cannot be assessed or measured based on one procedure to another. Rather, indirect costs are sustained to provide support and backing to all patient care activities. A fitting instance of an indirect cost is a surgery table purchased or procured by an ambulatory surgery center (Finkler and Ward, 1999).

Describe how the costs affect different populations and how this affects healthcare delivery

Costs incurred in healthcare delivery have an impact not only on different populations but also on the carrying out of such healthcare delivery. According to Cunningham (2009), the increasing costs of medical care poses a major threat to the efficacious delivery of medical care, which is that it impacts patient trust towards physicians and continuity of care. Notably, with patient populations being more exposed to higher medical costs could give rise to increase skepticism in addition to diminished trust of the decision making of physicians and thereby leading to healthcare delivery being less efficacious. Another significant and notable impact of increasing healthcare costs is the fear of medical bills by populations. The impact of this is that progressively more patient populations are opting to skip medical visits. In accordance to Gillies (2018), recent surveys have indicated that 44 percent of patient populations in the United States have reported that they shoes not to go to the doctor or physician when….....

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Boccuzzi, S. J. (2003). Indirect health care costs. In Cardiovascular health care economics (pp. 63-79). Humana Press, Totowa, NJ.

Cunningham, P. J. (2009). High medical cost burdens, patient trust, and perceived quality of care. Journal of general internal medicine, 24(3), 415-420.

Finkler, S. A., & Ward, D. M. (1999). Issues in cost accounting for health care organizations. New York: Jones & Bartlett Learning.

Gillies, T. (2018). Why health care costs are making consumers more afraid of medical bills than an actual illness. CNBC. Retrieved 10 July, 2018 from:

Heath, S. (2017). How Out-of-Pocket Costs Affect Patient Healthcare Access. Patient Engagement HIT. Retrieved 10 July, 2018 from:

Lewis, M. (2018). How Expensive Healthcare Affects Working Americans & Retirees. Money Crashers. Retrieved 10 July, 2018 from:

Remak, B. (2015). The consequences of high out-of-pocket medication costs. Drug Topics. Retrieved 10 July, 2018 from:

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