COVID 19 s Impact on Healthcare Financially

Running head: COVID- 1

COVID-19 3

How Does COVID-19 Affect Healthcare Economically

Introduction

This paper aims at discussing the topic \\\\\\\"How does COVID-19 affect healthcare economically.\\\\\\\" COVID-19 had caused much damage in both the health and economic sectors. As of March 28, 2020, the disease had contributed to the loss of 10 million jobs, and this data was for just two weeks. The damage that had happened before the two weeks was not captured in this duration. During the second quarter, the United States economy will shrink by 10% to 25%. The economy\\\\\\\'s slow growth is already happening in the USA, with main economic activities being affected (Cutler, 2020). Economy damage is occurring worldwide, with the health sector being the most hit. Financial markets that depend on other sectors, including health, are also losing huge profits daily. All these damages put together are expected to cause a loss of approximately $1 trillion in the world economy by the end of the year 2020 (Kabir et al., 2020). This recession\\\\\\\'s effect on the economy is being felt in the transport industry, manufacturing industries, with many people losing jobs primarily due to measures to contain the pandemic. At the initial stage of Covid-19, many countries underestimated the danger ahead and thought everything would be fixed in a few days. The economy was to remain stable, but things are turning out very differently. Both lives and economies must be supported to avoid total damage. What is even more discouraging is reports showing that the disease is here to stay, and so the world should come up with measures to live with the condition until that day when a vaccine will be found (Pak et al., 2020).

The pandemic has hit hard agricultural and food sectors of many countries. Disruption of the supply chain has affected these two sectors due to delays in custom and credit markets. The food industry also depends heavily on the transport industry. Therefore cessation of movement in countries had posed the world to another danger of experiencing food shortage in the future (Shrestha et al., 2020). COVID-19 will advance the health challenges that were already in existence, and the government should focus more on stopping damages that cannot be recovered. Prevention measures will help more to stop deaths that are affecting the population. UN security council advises nations to protect Vulnerable population whose survival rate is less when exposed to the virus. Some of the vulnerable groups include the elderly and people living with conditions such as diabetes. Nations have used police in enforcing containment measures. In some cases, police have violated human rights, and according to UN High Commissioner for Human Rights, the rate at which this is happening is alarming. (Lambert et al., 2020).

Significance

Many countries have reported total damages in the economies and have loosened COVID-19 containment measures to protect the economies from going to their knees. The health sector is also exhausted in many countries, and handling all patients needing help is no longer possible. Efforts to manage patients in home-based care have been put in place, but only people with mild symptoms can recover from homes (Khalid & Ali, 2020). Some guidelines to stop the spread of COVID 19, such as self-isolation, social distance, and travel restrictions, have reduced many companies\\\\\\\' workforce, resulting in job loss. The closure of schools has also affected the businesses that depend on the student population to transact. Schools consume several commodities that are either produced on farms or even manufactured in industries. The demand for such goods has declined, and some have opted to change their business line. Food demand has shifted to homes where people are stocking to stay safe just in case of future shortages or a rise in food prices (Nicola et al., 2020).

Low-income earners who get food based on day to day casual labor have faced severe challenges during the lockdown. Discussion on damages caused by lockdown has been based on this class of people. The need to support this category of people is the main issue (Gopalan & Misra, 2020). Small businesses have also been affected, and some have opted to close or change to other businesses that they think will survive in the current environment. Some of the affected small businesses include those that deal with cash flow, sales and marketing, supply chain, health, and safety (Donthu & Gustafsson, 2020).

Cessation of movement was one proposed way to contain COVID-19 but staying at home could only be afforded by people who had stocked enough food. To people who earn daily bread by doing daily tasks, this narrative exposed them to a worse situation of dying of hunger. Displaced people who live in crowded places were also exposed to more risk of catching the virus since everybody lived within the camps or designated areas. By the time the lockdown is over, the disease will be at its peak in this camp, and another challenge of discrimination will arise. People will point fingers at people from camps as having the virus, and they will have problems accessing not only social amenities but also health systems. All these outcomes should be put on the discussion table before making any move in the name of containment. (Lambert et al., 2020).

Background Material

Background material is based on different challenges experienced in the health system as a result of COVID-19. The spread of COVID-19 across the world has caused unexpected pressure in the health sector. The challenges are based on a shortage of testing kits, medical supplies, and prevention outfits (Roy, 2020). Many health facilities can no longer handle the growing number of COVID-19 patients, and they have gone to the extent of suspending outpatient services. The demand for PPES has also upsurged due to the global market, and therefore, hospitals have to spend more to procure these essential outfits to protect both doctors and patients (Hashmi et al., 2020).

Thesis Statement of Purpose Statement

The thesis statement is that \\\\\\\"COVID-19 has affected healthcare economically.\\\\\\\" A pandemic\\\\\\\'s effect is viewed in terms of both mortality and its effect on people\\\\\\\'s livelihood. The world has spent billions of dollars fighting against the pandemic, and people have lost jobs in the process. Demand and supply chain have destabilized, and investors can no longer trust the market dynamics. Lastly, significant changes have happened in different sectors to prevent and streamline the pandemic\\\\\\\'s response (Shrestha et al., 2020).