Health Care Cost Analysis Essay

6. How does the current reimbursement level of $140,000 per case affect a decision to use or not use marginal cost pricing? Does the amount of excess capacity affect the decision? Why?

Because of the large amount of money associated with running this service line, the issue of payment will affect it very intensely. With the cardiac cath labs expected to cost $4,500,000 and the cardiac rehab expansion to be $500,000, the upfront expense will already cut into the bottom line. The service line will need to not only address education of the community, access into the system, preventive medicine and the latest technology, but it will need to be done as efficiently as possible. Moving patients through the system as quickly and efficiently as possible is also cost effective.

Our Healthcare system is clearly business based according to the article “Cost Conundrum” and on the movie “Escape Fire”. In the movie it had an impacting story of an older lady who had heart problems where she went to a doctor and they were going to charge her thousands of dollars were later she went to a different doctor and they charged her a couple hundred dollars for t he same procedure. I couldn’t believe that in a different office she would get the same procedure done for a lot cheaper than in the other doctor’s office. Also, it surprised me how the medical staff are giving all these medications to our soldiers were they are clearly

When figuring out the costs for revenues you need to figure out how much the network will earn from all the scans done throughout the five year period. When configuring revenue associated with scans you need to look for total payments which are nineteen thousand and six hundred and ninety then multiple total payments by fifty weeks. This equals out to nine hundred and eighty four thousand and five hundred annually, then multiple the annual revenue by five years. The total scan revenue for five years comes out to four million and nine hundred and twenty two thousand and five hundred dollars. The next amount added to the revenues for the physician’s network is the amount the MRI machine can be salvaged for which are seven hundred and fifty thousand dollars. The next equation to configure is the total revenue costs. How you configure the total revenue costs is by adding the total scan revenues and the salvage costs, which equals out to five million and six hundred and seventy two thousand and five hundred dollars. The final equation is to figure out the net revenues of the MRI machine and that is to take the total revenues and subtract the total expenses for five years. The total revenue is five million and six hundred and seventy two thousand and five hundred and you then subtract the total expenses, which is

The actual charge was $70.00 with the projected 1600 at $80.00 totaling $128,000.00. The actual revenue was 1,400 at $70.00 with a total of $98,000.00. Flu treatment had a negative price variance of 12.5% per patient which comes out to $30,000.00, an unfavorable result. Patients traffic is an uncontrollable variable, but pricing is fixed.

Cost benefits of the community may include a variety of health necessities that serve useful for the patient and the healthcare provider. It entails items that deem useful in the treatment and preventive care of the patient. In a situation that results are necessary to receive an equipment is needed to conduct the patients pinpoint health for examination. In making the decision of different options seen to be useful for a healthcare facility an ultrasound device is the best way to connect the patient's health with the healthcare provider.

Cost-benefit, cost-effectiveness and cost-utility analyses are forms of economic evaluation which are useful in health economics for comparing costs and allocating resources. Health economics is widely relevant to governments and the health sector in implementation of new policy, as it concerns the allocation of resources in the context of a limited budget, or 'scarcity'. Economic evaluation is a potential tool for setting priorities in health, though it is only one of many potential criteria, including overall budget and public attitudes and wants. Economic evaluation is already in use in some settings, such as in pharmaceutical company proposals for government subsidisation, but there is room for expansion across the field of

The aging population of the United States along with a healthcare financial system not adequate to cover the cost will be a major factor in the future of healthcare. There is a disparity in health care related socioeconomic status, age of emerging population and quality of care that require new modes of care to address patient affordability, knowledge, physician cultural competency, bias and the scope of health insurance coverage (Fiscella, 2002). The population of aging Americans will increase to 3.4 million by 2020 due to the influx of over the age of 65 retiring resulting in a 21.6% in older Americans requiring health services (Longevity, 2011). In addition, this emerging population will require additional services to an increase in life

Government financed health care typically has more control to place limitations on care offered to patients and doctors in order to keep costs down. Since payers must try to deliver the most care for the

During the Great Depression, the pre-paid services began to grow rapidly and BCBS began to provide doctors with reimbursement for services as well as providing discounted services to the hospitals (Lichtenstein, n.d.). This helped to increase the prompt payment and volume of need to these hospitals. While increasing the availability of need and the need for prompt payment after services, “several large life insurance companies entered the health insurance field in the 1930’s and 1940’s as the popularity of health insurance increased” (Northern California Neurosurgery Medical Group, Inc). While there was a huge increase after the Great Depression, it “inadvertently inspired the spread of employer-based health insurance, World War II accidently

The cost of healthcare continues to rise in the United States. Americans are struggling to pay out of pocket expenses related to needed surgeries. Many individuals are responsible for the entire bill because they don’t have any health insurance. Many people are now reaching out to other countries for needed live saving procedures. This paper will explore some of the reasons for this change, the trends, and the globalization of healthcare along with the pros, cons and risks to the patient. The questions that begin each paragraph are the homework assignment questions. A decade ago the idea that medical procedures might move offshore was unthinkable. Today it is a reality. What trends have facilitated this process?

Health care expenditures is an increasing proportion of gross domestic product (GDP) in Organization for Economic Cooperation and Development countries as its share in GDP increased by an average of nearly 2 percent annually in last 40 years. Health care expenditures in the US increased 6.2 on average annually between 1991 and 2011. Health care spending consisted 17.9 percent of GDP in the US in 2011.

The therapy price is estimated to cost $5,000 to $6,000 per patient, for monitoring and affection tracking of Microbiome on the disease. Finally, prices fluctuate from company to another, from place to another and are expected to change overtime.

Health care reform has been a big topic since the Clinton administration when First Lady, Hillary Rodham Clinton, took it under her belt to devise a new system. Health care is the provision taken to preserve mental and physical health using prevention and treatment. Compared to other health care systems in the world, the United States is ranked 37th in terms of care, claims Michael Moore (2007). Ironically, our health care system spends more than any other nation on its patients, averaging nearly $8,000 per person (DiNitto, 2012). With soaring costs, it is no surprise that one in every seven Americans are uninsured (Kaiser, 2011). Even with these sorry figures, statistics show that 85% of Americans are satisfied with their health care

There is no denying the fact that the cost of health care in the United States has been on a constant rise than the wage of the employees that pay to have access to better healthcare. There is the general fear among these employees that if the rising cost of the health care is not brought under control, there will come a time, and some analyst think, the time is already here, when those employees will not be able to afford health care for themselves and their families. This fear of the unknown is particularly evident among those closer to retirement. Employers of labor have for quite sometimes now, been shifting the burden of the high cost of affordable health care to their employees, and that has significantly reduced employee standard of