There are numerous forces within the macro environment that can bear impact on any given industry. These components can influence when, how, and what strategic decisions are made, and thus, revolutionize the industry as a whole, as we know it. This paper will take a closer look into how these factors are currently influencing the increasing cost of the
health care industry.
Economic forces, in theory and as fact as seen within the last 15 years, do indirectly affect the health care industry. Economic decline, high interest rates, changes in currency exchange rates, inflation, and deflation have been a major unseen cause that propels forward the #1 cause of death of Americans: Heart disease. In response, health care has been required to make startling and abrupt changes keep up with the treating, preventing, and educating of working class Americans, a large percentage of whom do not have the luxury of health insurance.
As our economy has intermittently teetered on the verge of recession over the years, the overall health of the American public has severely diminished. During such times, people must work harder and longer hours to maintain job status to accomplish their companies' goals due to economic stagnancy and increased competition for their product or service. This, in effect, results in higher levels of stress, poorer nutrition, and decreased time and energy for exercise and health maintenance.
Increased interest rates may also have a part in the overall decrease in health that plagues so many working class Americans. In times like these, it becomes harder for consumers to pay their bills, particularly on major items that are financed, such as a home or car. Companies can also be negatively affected by the decreased demand for their product, and the increased competition among other firms and decreased...