Compare the healthcarebased factors in the issues that you r

Compare the healthcare-based factors in the issues that you reviewed that, in your opinion, cause the cost curve of healthcare to shift. Provide at least one (1) example showing the manner in which the cost curve shifts in your response.

Solution

There are different factors related to the healthcare, that affect the cost and make the cost curve to shift. The first factor is investment in R&D work related to the healthcare. A higher investment in the research work to find new medicine, vaccines and breakthrough technologies, make the healthcare to be more costly. The second factor is the aging population. With higher age of the population, there is higher propensity for the need of healthcare series and for the longer term. It drives the cost to the on a higher side and shift the curve. The third factors is the presence of preexisting diseases and subsequent higher health insurance premium, is also shifting the cost curve and such people has to pay higher cost for the health care services. The fourth factor is the development cost of huge infrastructure of the hospital facilities. Later on, these costs are recovered from the patients under the different heading.
One example is development cost of the healthcare infrastructure. It increases the fixed cost and pushes the cost curve on a higher side. It increases the health care cost and make a shift in the cost curve to avail the services.