The global financial crisis threatened to lead to the total breakdown of the global economy. Despite originating from the US subprime market, the global financial crisis affected all sectors of the economy. The sectors affected by the global financial crisis ranged from banking, insurance to tourism.
The global financial crisis had an adverse effect on the healthcare industry. The global financial crisis reduced the funding of that the healthcare facilities received from the government. Lack of funding made hospitals suspend their expansion plans. The global financial crisis reduced people’s income. This reduced the ability of people to access quality healthcare. This is because they could not afford quality healthcare, which is expensive.
The global financial crisis reduced investments in the healthcare industry. Many hospitals delayed their expansion plans during the financial crisis due to lack of funds. Some of the worst affected projects included the expansion of wards and purchase of new diagnostic equipment. The hospitals put on hold projects that would have improved the quality of healthcare. In addition, there was a hiring freeze in most hospitals during the global financial crisis. Therefore, the global financial crisis had a negative effect on the quality of healthcare.
During the financial crisis, there was a significant decline in the number of patients of were admitted in various hospitals. This is because the patients did not have enough funds to seek medical treatment. Patients postponed seeking medical treatment for non-fatal ailments or resorted to cheaper healthcare alternatives.
This reduced the income of healthcare facilities that focused on treatment of non-fatal ailments. During the financial crisis, most hospitals experienced a sharp hike in bad debts. This is because patients could not afford to pay hospital bills despite the fact that they required medical care. Medical facilities have investment portfolios that complement their income. During the global financial income, the financial markets were performing poorly. Therefore, this reduced the income of the healthcare facilities.
The government, individuals, and employers are the principal financiers of healthcare. Most countries have various government-funded medical schemes that finance healthcare. Lack of funds during the global financial crisis necessitated the government to introduce budget cuts. Budget cuts had a negative impact on government-funded healthcare schemes. Companies depend on the availability of revenue to finance employee healthcare schemes.
The global financial crisis reduced the revenue of most employers. This reduced the ability of employers to fund various healthcare schemes. Individuals also have private healthcare insurance schemes. However, the global financial crisis led to a significant reduction in the income of various people. This made it difficult for individuals to purchase healthcare insurance policies.
The global financial crisis had a negative effect on the individual health of various people. People postponed seeking healthcare services for non-fatal conditions. People depended on the public healthcare system. This increased the pressure that the public healthcare system faced. This is despite the fact that the global financial crisis reduced the availability of funds to finance various public healthcare schemes. In addition, the global financial crisis reduced the health status of individuals.
Home foreclosures and other financial problems had a negative effect on the mental and psychological health of various people. The importance of healthcare in a nation’s well-being necessitated most governments to limit budget cuts on healthcare provision. Most governments strived to ensure that lack of funds during the financial crisis does not lead to deterioration of the health status of people.