History and evolution of health care economics Healthcare economics revolves around various issues that are related to effectiveness and efficiency as far as the consumption of healthcare is concerned. This means that it is concerned with the value and behavior of production that will ultimately guarantee good health. In this case, it should be understood that most health economists study the functioning of different healthcare systems. Different health-affecting behaviors are also looked at in relation to healthcare economics. As a matter of fact, there are various aspects like costs and financial information that are always evaluated when dealing with this discipline. This therefore brings us to the most important aspect of the history and evolution of heath care economics. Health care economics has been changing as time goes by in the history of the United States because of various aspects and factors (Drummond, 2005, p. 19). These changes can be attributable to different factors including the increasing demand for healthcare services at affordable costs and the declining supply of the services and hospital staff especially nurses. Additionally, various advancements in medical care and technology have influenced healthcare economics in the same measure. This implies that there have been good developments as far as healthcare spending is concerned. Increases in personal income have influenced the demand for healthcare services, and hence, transforming them tremendously as time goes by. The growth of insurance coverage has also taken a special place in the history of healthcare in the country. On the other hand, as far as the evolution of healthcare economics is concerned, rapid advances in technology have increased healthcare costs in a broad way. The history of healthcare economics has always played a very important role in the United States (Wise, 2009, p. 28). This is mostly important when it comes to the flow of funds because financial managers are supposed to be prepared for the future. As much as different factors continue to influence healthcare economics in the country, the major driving force has always been money. Accordingly, the success of the healthcare industry depends on money because this is what drives different aspects of economics including macro- and micro-economics. In this case, it should be known that the demand for healthcare services will always rise in relation to increases in real personal income of different families. Therefore, experts claim that the demand for healthcare services is comparatively inelastic considering that sickness does not influence people’s price sensitivity. However, other studies have shown an elastic link between healthcare expenditure and healthcare service requirements. For instance, one study notes that the price elasticity for healthcare expenditure stands at -2.3, which implies that there is a moderately stable elasticity between price and medical care (Wise 2009, p. 49). On the other hand, there are other important historical events that have been instrumental in shaping health care economics as time goes by. It is always argued that the United States health care system has its origin in 1798. This can be traced from the U.S. Marine Hospital Barton that was supposed to protect the public from communicable diseases (Drummond, 2005, p. 73). Since then, it is generally arguable that healthcare economics in the United States is driven by the fact that its demand is always derived from the supply of health. This is impo