Topic > Cleveland Clinic Case Study - 853

The economy grew between 1920 and 1929, and national wealth nearly doubled during that period. Some important innovations and discoveries that occurred over time were the first commercial radio station, the electric refrigerator, the automobile, and penicillin (“The Roaring Twenties,” 2010). The Roaring '20s also had an effect on the hospital sector. Before then, hospitals had a negative connotation. Hospitals were a place where people went to die, not a place to receive care. Once hospitals began marketing their facilities as “happy” places to go to receive care, the hospital system began to change. With this change and the growing economy it is no surprise that the prices of items and services have also grown. The total cost of hospital care for families increased from 7.8% to 13.9% between the years 1918 and 1929 (Gorman, 2006). Hospitals were now clean, employed educated professionals, and the treatments administered were effective. To address the rising costs of health care, the American Medical Association (AMA) attempted to address this issue at its 1926 convention. At the time, even though the economy was growing as were people's incomes, The rising costs of medical care made it difficult for people to get the care they needed. In 1927, the AMA estimated that national health spending was 4% of national income (Gorman, 2006). Their solution to this problem was to increase the amount of resources going to the medical community. During the 1920s, there was also an increase in doctors' incomes and the prestige of doctors was consolidated (“Healthcare Crisis,” n.d.). With all the innovations, discoveries, and growing economy, the 1920s were the perfect time for the Cleveland Clinic to join the medical world.