Memorandum on High Healthcare Spending

Running Head: Memo
Healthcare Spending
Name:
Academic Affiliation:
Date:

Memo 2
Memorandum
To: Board of Directors
From: Chief Operating Officer
Date: 12/11/2018
Subject: High Healthcare Spending

Memo 3
Factors that have contributed to dramatic growth in health care spending over the
past 50 years
Tenet Healthcare Corporation is a large well known Texas, United States based
healthcare system. I have been working as a Chief Operation Officer (COO) in Tenet
Healthcare Corporation from past 10 years and I have noticed the dramatic growth in
healthcare spending over the last 50 years and I think these changes are beneficial for
healthcare industry. Currently, 126,000 employees are working in this company. The
healthcare operator offers their services throughout United States. Apart from this it
operates around nine facilities and 470 outpatient centers in approximately 10 American
States (Feo & Kitson, 2016). The drastic changes I have identified theses times is the
content of this memorandum. Many factors are there including greater demand for
services, newly derived technologies, prescription drugs, shifting cost for the
underfunded public programs, medical malpractice liabilities which are acting as the cost
driving factors in Tenet.
The population of Washington has reached currently to level up to 6,068,997.
Among these, approximately 11.5 % of the total population is more that 65 years old,
which shows that the service demand is also enhancing. Another driving factor is medical
technology which provides paramount breakthrough for improving care and saving lives
though, these technical excellences comes with noteworthy cost (Sendall et al., 2017). A
wider range of improvement that are leading through diagnostic imaging, in-vitro
diagnostic, cardiovascular approach etc are encompasses by the technology market.
Several new procedures are evolving to care for the heart disease. From the last decade I