Fiscal Policies: Aiding Cost-Effective Healthcare Improvement

These fiscal policies support the government to improve on healthcare systems and reduce the high and ever-rising costs of healthcare (Bloomrosen et al, 2011).The current investment in technological innovations within this sector such as the Health Information Technology (HIT) and Electronic Health Records (EHRs) ensures a cost effective approach to funding healthcare through initiatives such as the American Recovery and Reinvestment Act (ARRA), Health Information Technology for Economic and Clinical Health (HITECH) (Bloomrosen et al, 2011).With the EHRs legislation in place, healthcare providers have the capacity of prescribing medicine in a cost-effective approach (Orszag, 2008). Consequently, HIT ensures efficient provision of healthcare for the providers and hence reduces the expenses that come with healthcare delivery. Moreover, inadequate healthcare for consumers meant extra costs in terms of compensation for the damages and errors experienced.

Fiscal policies which encourage HIT and EHRs implementation would reduce the probability of duplicate or

On the other hand, with the benefits of technology in improving health, it has been a daunting task for the healthcare workers to adapt to the ever-changing technology. In addition, the cost of Health IT system much especially for the private provider is expensive because of the purchasing cost of the IT components and maintenance, technical installation, licensing fees and opportunity cost of learning duration for the healthcare providers. For this reason, the rates of exploiting the benefits of technology in healthcare delivery are minimal as compared to that in the administrative and financial sector within the Health industry. This has had a surprising turnout since the high cost of investment in Healthcare technology is met with a low rate of its use to improve