Health Economics Essay Example | Topics and Well Written Essays - 500 words - 2

Health Economics - Essay Example However, as an industrial segment, this submarket appears to be shrinking the countries like the United States. Hence, increased competition appears to be the major problem of this submarket. Even some professional websites such as CompleteLongTermCare.com (2012) do not consider the present situation has arisen due to increased competition. Rather, shrinking submarket is giving way to malpractices. According to Yahoo! Inc. (2012), the long term care facilities have a composite value of 1148.9 as of 7th November, 2012. On this specific day, the amount of change was -0.26%, which means that the submarket is shrinking. If the data of past few years are analyzed, then we find that this submarket is shrinking since the global economic recession. Reduction of service costs coupled with deterioration of service quality is a prominent problem given that in absence of competent healthcare services, public are suffering from chronic shortcomings to the system as a whole. â€Å"There are nursing homes that are surprisingly cheaper than the others. They even offer great deals and promos which can sound too good to be true. No matter how good their deals may be, always remember that they are cheap for a reason. Some nursing homes cost less because they offer less.† (CompleteLongTermCare.com, 2012) Furthermore, a recent study by the US Department of Health and Human Services (n.d.) indicates that at least 10% of the patients (who get admitted to a nursing home annually) are possibly going to stay there for at least the next five years and more. Like Europe, America may also be soon suffering from the problem of a vast population of senior citizens and old age groups. Strangely enough, although demands for TLC are thus poised to increase, quality of services are being preponderantly compromised (Saltman et al, 2006) The proposals enumerated above will