There have been several reasons for such growth of cost in the health care system in the last few years. One of the most important reasons is the heavy spending in the technology sector. With time even the diseases are getting complex. Thus to fight such diseases technological innovation is a must. The use of prescription drugs also adds to the cost as with better technology the composition of the drugs are also changing which is making it more costlier than ever. The other very important factor that has added to the cost is the nature of the chronic diseases that has been a recent trend in the last few years. Chronic diseases constitute 75% diseases of the nation. These diseases are basically of long term duration and thereby requires more spending than other kind of diseases. Even the cure of such diseases is very costly compared to other kind of diseases. One economic factor which adds to the growth of the cost structure is the increase in population as well as the aging of the population in US. With time, large portion of the populace is turning out to be aged as it is widely known that most diseases are often witnessed in old age. Therefore, with growing number of aged patients in the nursing homes, the cost of the health care division is also increasing. Higher administrative costs also contribute the higher health care cost structure (Kaiser Edu, 2010).
Infrastructure, organization and quality should be major determinants in the health care delivery system. Health care largely depends on the infrastructure of the unit. It is very essential for the nursing home to have high level of infrastructure in order to combat with any kind of disease. Again the non physical infrastructure should be competent and up to date. It generally means that the information system and the human resources should be competent enough