Healthcare Finance Report - Factors Affecting Healthcare Costs

This report provides an analysis of healthcare finance, examining the factors that contribute to increasing and decreasing healthcare costs. It explores the impact of factors such as an aging population, technological advancements, and the organization of healthcare markets. Furthermore, the report delves into the components of a balance sheet, including assets, liabilities, and equity, providing a clear understanding of their significance in financial reporting. The report also references relevant literature to support its findings and conclusions, offering a comprehensive overview of the key aspects of healthcare finance.

Running head: HEALTHCARE FINANCE
Healthcare Finance
Name of the Student:
Name of the University:
Author’s Note:

1HEALTHCARE FINANCE
Table of Contents
Question 1........................................................................................................................................2
Question 2........................................................................................................................................2
References........................................................................................................................................3

2HEALTHCARE FINANCE
Question 1
The key factors that has particularly contributed to the increase in the Healthcare Costs
has been primarily increasing population, aging of seniors, and ineffective utilisation of the
various medical services provided (Dieleman et al., 2017).
On the other hand, the key factors that has particularly resulted in the decrease in the
healthcare Costs has been due to better information and updates available about the medical
services to be used, organized markets for the healthcare industry do ensure that there is a fair
competition in the market and no customers are overcharged for any offered products or services.
Availability of better supplies of medicines and medical services due to increase technological
advancement has consistently allowed the Healthcare Industry to grow consistently.
Question 2
The components of the Balance Sheet are Assets, Liabilities and Equities. The above
components can be well explained with the help of an equation as Assets = Liabilities + Equity.
Assets: Assets reflects/shows the key resources that are owned by the company and that is
creating value for a company whereby the stated assets is expected to generate a significant
amount of wealth creation in the future point of time period.
Liabilities: Liabilities shows the probable future outflows that the company would be paying or
is expected to pay-off which are reported as a result of past events or transactions done by the
company (The Balance Sheet | Boundless Accounting, 2019).
Equity: Equity shows the ownership position of the company or the equity capital of a company.

3HEALTHCARE FINANCE
References
Dieleman, J., Squires, E., Bui, A., Campbell, M., Chapin, A., & Hamavid, H. et al. (2017).
Factors Associated With Increases in US Health Care Spending, 1996-
2013. JAMA, 318(17), 1668. doi:10.1001/jama.2017.15927
The Balance Sheet | Boundless Accounting. (2019). Courses.lumenlearning.com. Retrieved 2
October 2019, from https://courses.lumenlearning.com/boundless-accounting/chapter/the-
balance-sheet/