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Health Care Policy Analysis

Decent Essays

The healthcare industry in America spend $1.878 trillion in health care, comprising 16% of the gross domestic product and amount to $6,280 per capita thereby out pricing the GDP due to the rapid development of medical technology resulting in treatment of disease, rising expectation about value of health care services, government financing, growth of elderly population and lack of competitive market (Williams & Torrens, 2008). Furthermore in 2004, Medicare/Medicaid contributed to 56% of hospital reimbursement and 59% of Medicaid funding is contributed from by the federal general treasury with the states averaging 41% of the contribution resulting in $309 billion in Medicare health services while Medicaid spent $213.5 billion in 2002 (Williams …show more content…

Population health and bundled payments are a way to pay for performance and is a great concept if the right regulation is enacted to ensure all patients receive equal access to care. The federal government passed the Patient Protection and Affordable Care act to enact improvements in health care and under the Medicare Shared Savings Program (MSSP) congress empowers CMS to create and regulate Accountable Care Organizations serving Medicare patients with the goal of reducing cost and improving quality of care (Thurman, 2014). However the population health is expanding outside of the CMS program although CMS designed the MSSP program insurances like BCBS, Cigna and Humana are now pushing the same model. The Patient Protection and Affordable Care Act, since October 2012 has outlined a 1 percent withholding based on Medicare payments if quality performance measures are not achieved (Weissert & Fredrick, 2013). As a result CMS is outlining the future of healthcare with population health and pay for performance as its cornerstone of the future model in health …show more content…

As of July 2015, BPCI had 2115 participants in Phase 2 with 423 acute care hospitals, 1071 skilled nursing, 441 physician groups, 101 home health agencies, 9 inpatient rehabilitation facilities and 1 long term care hospital that will each can select from any of the 48 clinical episodes to participate that include anything from amputation, back/neck, cardiac value, chest pain, congestive heart failure, diabetes, fracture femur hip/pelvis, knee procedures, renal failure, red blood cell disorders or urinary tract infection (CMS: Bundled Payments for Care Improvement, 2015). Although there were limited participants during the first year, as of August 5, 2014 approximately 2,368 new potential participants joined Phase one and new episodes will be added until October 2015 and more episodes will be added to additional models and phases along with the patient survey to evaluate the patient’s experience therefore CMS is expecting the program to continue to expand throughout the market (CMS: Bundled Payment for Care Improvement Initiative (BPCI) Fact Sheet,

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