NUR 906 Health Care, Finance and Economics Model 1 Discussion
Module 1 Discussion 1
Healthcare Spending in the United States Compared with Other Developed Nations
Healthcare spending in the United States is the highest among developed countries. In 2022, per-person healthcare expenditure reached about $12,555, more than double the average of other advanced economies. Nations such as the United Kingdom, France, and Japan typically spend between $4,000 and $6,000 per person (Chao et al., 2025). Despite this massive investment, Americans do not receive proportionately better care outcomes. A large portion of this excess cost results from higher prices for hospital services, physician fees, and prescription drugs (CrashCourse, 2016). Administrative costs from the multi-insurer system and extensive paperwork also raise expenses. The healthcare system prioritizes profit, driving up prices and limiting affordability.
The United States also allocates a greater share of its gross domestic product to healthcare than peer nations, spending nearly 17 percent of GDP, compared with the OECD average of around 9 percent (Shrank et al., 2021). This difference reflects inefficiencies and inflated costs rather than higher usage of services. Americans do not visit doctors or hospitals more often than citizens in other countries. Instead, they pay more for care that is similar or even less comprehensive. Insurance companies, pharmaceutical firms, and private healthcare providers largely influence pricing structures. The result is a system that spends more yet delivers inconsistent outcomes and inequitable access across populations.
Comparison of the United States in Quality and Access to Care
The United States performs unevenly when measured on healthcare quality compared with other developed nations. Areas such as cancer treatment and advanced surgical technology demonstrate excellence, but preventive and primary care show major weaknesses. Many preventable hospitalizations, medication errors, and chronic disease complications stem from delayed access and inconsistent follow-up. Healthcare delivery is fragmented, and insurance changes often disrupt continuity of care. Despite high spending, the country ranks lower than its peers on key outcomes such as life expectancy, infant mortality, and avoidable deaths. The focus on treatment over prevention results in costly interventions rather than sustained community health improvement.
Access to care in the United States remains unequal, largely dependent on insurance coverage and socioeconomic status. Unlike countries with universal healthcare systems, millions of Americans remain uninsured or underinsured, limiting their ability to seek timely care. High deductibles and copayments discourage preventive visits and medication adherence. Geographic disparities also affect access, particularly in rural and underserved areas where provider shortages persist (Pichon-Riviere et al., 2023). Patients often delay care until conditions become severe, thereby increasing overall treatment costs and worsening health outcomes. These systemic barriers highlight that spending alone cannot guarantee access or quality without equitable and efficient health policies.
References
Chao, C. C., Trinh, C. T., & Nguyen, X. (2025). Public healthcare spending, business dynamism, and wage inequality: Evidence from developed and developing economies. Review of Income and Wealth, 71(1), e12712. https://doi.org/10.1111/roiw.12712
CrashCourse. (2016, April 6). The Economics of Healthcare: Crash Course Econ #29. YouTube. https://youtu.be/cbBKoyjFLUY
Pichon-Riviere, A., Drummond, M., Palacios, A., Garcia-Marti, S., & Augustovski, F. (2023). Determining the efficiency path to universal health coverage: Cost-effectiveness thresholds for 174 countries based on growth in life expectancy and health expenditures. The Lancet Global Health, 11(6), e833-e842. https://doi.org/10.1016/S2214-109X(23)00162-6
Shrank, W. H., DeParle, N. A., Gottlieb, S., Jain, S. H., Orszag, P., Powers, B. W., & Wilensky, G. R. (2021). Health costs and financing: Challenges and strategies for a new administration. Health Affairs, 40(2), 235–242. https://doi.org/10.1377/hlthaff.2020.01560
Module 1 Discussion 2
Definitions and Importance of the Distinction
Health economics examines how money, labor, and materials are distributed within the healthcare system to achieve the best health outcomes. It focuses on analyzing costs, efficiency, and value to determine how health resources can be used most effectively. Health financing refers to the process of collecting, pooling, and managing funds to pay for health services. It involves decisions about who contributes, how funds are shared, and how financial risks are managed (Wagenschieber & Blunck, 2024). Reimbursement means the payment method used to compensate healthcare providers for services rendered. It determines how hospitals, clinics, and practitioners receive funds after patient care. Each concept influences healthcare delivery and sustainability.
Understanding these distinctions is important for nurse leaders because financial knowledge supports leadership and accountability. Nurse leaders manage resources, oversee clinical operations, and must justify expenditures to maintain quality care within budget limits. Knowledge of economics helps them evaluate whether care practices offer value and efficiency. Understanding financing clarifies how funds flow from payers to providers, influencing staffing and service capacity (Ismail et al., 2025). Awareness of reimbursement structures helps nurse leaders align clinical performance with payment incentives. This understanding allows them to advocate for fair compensation for nursing services, influence budget planning, and improve financial transparency within healthcare organizations.
Impact of Understanding Health Economics on Nursing Practice
An understanding of health economics enables nurses to make balanced clinical decisions that consider both patient needs and cost implications. It allows nurses to identify unnecessary tests, medication waste, or prolonged hospital stays that increase costs without improving outcomes. Nurses can advocate for early intervention, preventive education, and efficient care coordination to reduce readmissions and enhance quality (Ismail et al., 2025). This perspective promotes responsible use of resources and improves overall patient satisfaction. Economic awareness also supports ethical decision-making, as nurses can weigh the cost of treatments against their expected benefits, ensuring patients receive appropriate and affordable care.
At the organizational and system levels, an economic understanding enables nurses to participate in budget discussions, evaluate new technologies, and contribute to cost-effective care models. Nurse leaders can use economic data to justify staffing ratios, training programs, and safety initiatives that improve productivity. Knowledge of financial principles strengthens advocacy for equitable access to healthcare, especially in underserved communities (Valimaki et al., 2024). Nurses can analyze how economic policies affect patient populations and design interventions that reduce disparities. Understanding health economics builds confidence in communicating with administrators and policymakers, allowing nurses to influence healthcare reform and contribute to sustainable, value-driven care systems.
References
Ismail, H. A., Kotp, M. H., Basyouny, H. A. A., Abd Elmoaty, A. E. E., Hendy, A., Ibrahim, R. K., & Aly, M. A. (2025). Empowering nurse leaders: Leveraging financial management practices to foster sustainable healthcare–a mixed-methods study. BMC Nursing, 24(1), 335. https://doi.org/10.1186/s12912-025-02981-6
Valimaki, M., Hu, S., Lantta, T., Hipp, K., Varpula, J., Chen, J., & Li, X. (2024). The impact of evidence-based nursing leadership in healthcare settings: A mixed methods systematic review. BMC Nursing, 23(1), 452. https://doi.org/10.1186/s12912-024-02096-4
Wagenschieber, E., & Blunck, D. (2024). Impact of reimbursement systems on patient care–a systematic review of systematic reviews. Health Economics Review, 14(1), 22. https://doi.org/10.1186/s13561-024-00487-6
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Model dicusion 1
follow the above link on you tube , watch the video and respond to the two question below
1. Share how healthcare spending in the US compares with that in other developed nations.
2. How does the US compare in quality and access to care?
Module 1: Discussion 2
Rambur describes the distinction between health economics, financing, and reimbursement (Ch. 1). 1.How would you define each term in your own words, and why is the distinction important for nurse leaders?
2. From a nursing vantage point, how can an understanding of health economics shift your approach to clinical, organizational, or system-level decision making?