- Published: October 4, 2022
- Updated: October 4, 2022
- University / College: University of California, Irvine
- Level: Masters
- Language: English
- Downloads: 35
Socioeconomic impacts on healthcare al affiliation: Every has got its unique budget depending on areas that needmuch improvement thus allocated significant amount of money. State might experience a fiscal deficit that will force it to reduce its budget in order to compensate it (Wang, 2006). Budgetary cut will have a vast impact on sensitive sectors within the affected state. Discussed below are social and global economic impacts of this budgetary cut to the health care.
According to Khan and Hildreth (2002), a budgetary cut hinders the purchase of hospital equipment. Health centers lack enough beds to admit more patients. Inadequate funds also lead to inadequate drugs to administer to their patients. A society will eventually have an inadequate health care thus leading to loss of lives to people who played vital roles in boosting the state’s GDP either directly or indirectly.
Budgetary cut hinders health organization from expansion. A health institution might not be able to improve its structures or have more branches due to lack of enough funds. It also discourages innovation, since there will be no sufficient funds to support any project such as offering ambulance services to both its incoming and outgoing patients (Wang, 2006).
Lastly, budgetary cut lowers morale of health workers. There will be no funds to employ new health workers despite the increasing rate of patients. It forces the old health workers to work extra hours in regardless of compensation. Health workers experience salary cut-off or even payment delays since some urgent projects needed immediate funding that took time to bring back the income (Khan & Hildreth, 2002). In summary, every state should put more emphasis on sensitive sectors that often require more funds during budgetary allocation despite the budget cut.
References
Khan, A., & Hildreth, W. (2002). Budget theory in the public sector. Westport, Conn.: Quorum Books.
Robson, W. (2001). Will the baby boomers bust the health budget?. Toronto: C. D. Howe Institute.
Wang, X. (2006). Financial management in the public sector. Armonk, N. Y.: M. E. Sharpe.
