Price Control In Health Care

The healthcare system in America is a market based system that functions by relying on the structures of an efficient market. The principles of demand and supply are instrumental in determining the functionality of the healthcare system in USA. One of the factors that has contributed to this reality is the fact that healthcare in the US is provided by various distinct organizations which are largely owned by private businesses. Indeed, 21% of hospitals in USA are owned by the government while another 21% are owned by private businesses operating for profit. 58% of hospitals in USA can be described as not for profit organizations. Indeed, the American healthcare system is a leader in medical innovation when compared to its impact on the health status of people. However, the nature of the entire unit as a whole leaves a lot to be desired since accessibility to these medical marvels remains a fundamental problem for a majority of the US population (Davis, Stremikis, Squires & Schoen, 2014).

The first effort that will help with cost containment is monitoring the decisions of physicians. It is thought to be that physicians “determine who comes into our facilities, how long they stay, and what gets done to care for them along the way” (Rich Daly, 2013) If physicians really do determine all of that stated, then the efforts for cost containment need them to be the leaders. The article “Putting Physicians in the Lead for Cost Containment” also states that there are many factors that physicians can go through with such as improving daily care while keeping costs low, change procedures to “yield savings”, and it also states that they should be on top of things to notice progress. All of those factors stated in the article can contribute to cost containment in a way that also improves the quality of care. The ideas given will help patients by giving them a higher quality of care and it will also help physicians by giving them a

The recent economy inflation in the year 2008 is an illustration of how the economy can affect the health care system. Therefore, it is imperative that the government take measures to prevent regulations in the health sector. This is by taking part in offering inducements to health care providers, offering public insurance policies and such.

With the Centers for Medicare and Medicaid (CMS) providing coverage for over 100 million citizens in the United States and being the largest care delivery system, it is hard to ignore their presence in the ever changing health care delivery system. Some say, that where Medicare goes, private payers will follow. Today, hospitals, health systems and other providers have been highly influenced by Medicare. Medicare, Medicaid, the Children 's Health Insurance Program, and the Health Insurance Marketplace are leading the way in the movement to provide coverage under this system. As the Affordable Care Act is ironed out, there are still billions of dollars being spent within the Medicare/Medicaid programs. In an effort to try and combat some of the overwhelming costs of these programs, the Accountable Care Organization (ACO) Model has slowly begun to integrate itself into the Medicare/Medicaid system. This has brought about some interesting changes with reimbursement, cost containment, and quality of care. Each making slow shifts towards change and developing new systems of providing quality health care.

Timothy Stoltzfus Jost’s article “Eight Decades of Discouragement: The History of Health Care Cost Containment in the USA” is a comprehensive overview of how the American government attempted to control health care costs throughout the entire history of modern health care system.

Timothy Stoltzfus Jost’s article “Eight Decades of Discouragement: The History of Health Care Cost Containment in the USA” is a comprehensive overview of how the American government attempted to control health care costs throughout the entire history of modern health care system.

Part of the cost-driving factor seen here is in the gluttony of physicians who provide care to a patient. In areas which are high in physicians supply, competition might promote utilizing more expensive procedures and treatments in the care of patients. The amount spent on health care is also not beneficial to the outcomes that come out of such care (Emanuel,

In my opinion, I believe the following national trends affect competition and pricing, access to care, technology, shortage of physicians & reimbursement. Access to care and shortage of doctors increases the competition for consumers. Physicians have to work harder to attract patients to remain relevant in the market. Technology is also important since the organizations that use technology will be more sort after. According to Harris (2017), In some instances, the reimbursement process is now linked to patient’s satisfaction, and this will factor into how the physicians receive payment. These trends occur nationwide and cause both the competition and pricing will continue to vary. Healthcare is an industry that is constantly evolving; therefore,

In the video “Sick around the world” we see how different countries accommodate their population’s health care needs, through their customized systems. Great Britain’s National Health Service (NHS) developed a very considerate system that offers no copay, or any fees in general. The NHS pays for everything, which is a great feature and is beneficial to the people. A major disadvantage of the NHS is the wait time for elective care. Although the wait time has improved from 16 to 18 months in the past, to currently 6 months, the wait time is still a bad component of Britain’s NHS. As for the second richest country in the world, Japan’s health care system appears to be affordable, due to the fixed prices for every aspect of health care and a one payment system. The downfall is that fifty percent of hospitals are in fiscal deficit, which may add to this wealthy country’s huge economic burden. Similarly, Germany keeps its citizen’s best interest in mind, due to the fact that 90% of

High prices are hurting American families. Americans pay exorbitant prices for all kinds of care. High prices are why medical debt remains a leading cause of bankruptcy in the United States, and nowhere else. The US healthcare delivery system differs from those of other developed countries in three notable ways: It relies on multiple sources of private financing, it covers less of the population, and it costs much more. Shaped by the institutions, ideas, and interests that drive American policymaking, the US health care delivery system is uniquely complex, costly, and unequal. Initially private, it has become an increasingly complex public/private mix, as incremental reforms adopted over many decades have sought to correct market failures

While it is true that healthcare is way too expensive, I think the government price controls (limits) to curb the exorbitant prices is not the solution. The rationale for high prices in the health care is based on the ridiculous high administrative costs, high costs of drugs that no one can afford and high health insurance premiums. The solution to this craziness in healthcare is for the government to take a larger role in fixing the real causes of the crisis in pricing for health care. The government should ensure that the healthcare industry is efficient by creating a conducive economic environment for the production of healthcare products. The strategies adopted should at the very least ensure the pricing is fair and the healthcare given

Hospitals generally compete with each other. In such an atmosphere of fierce competition, “managers must assess the ability of their organizations to influence the prices paid for the services offered.” (Gapenski, 2008, p.194). And because most services provided in such marketplace are similar in nature, “the economic theory suggest that prices will be set forth by local supply and demand conditions. Thus, the actions of a single participant, whether the participant is a provider or a payer, cannot influence the prices set in the marketplace.” (Gapenski, 2008, p.194). In such a competitive market, the prices of services are constrained and as such, providers are said to be price takers. Moreover, some healthcare payers

As Palmer & Torgerson (1999) pointed out that decision makers in healthcare flied are dealing with the increasing challenges of the growing demand for health care services with limited funds. Whereas economists argued that the achievement of greater efficiency from reasonable resources should

Pricing is one of the main factors of a successful marketing mix. Pricing tactics, strategies, and objective, cannot stand alone. In order to be effective, price must work together with other management and marketing activities. When you use pricing as a tool in management it is limited in health care compared to other industries. There are several factors that contribute to this situation, like the development of the health-care exchange process, limited consumer knowledge, and a limited ability to measure costs.

Competition drives innovation and ultimately leads to the delivery of better healthcare. Competition has played a vital role in shaping the delivery of healthcare in the United States. Competition results in lower prices and broader access to health care and health insurance. Competition among and between hospitals and physicians intensified with the development of managed care organizations. In addition to putting pressure on costs, managed care plans have pressured providers to use shorter hospital stays and to offer alternative outpatient treatments (Botti, 2007). This led to lower costs and an increase in choice without sacrificing quality. Lower costs and improved efficiency has made health insurance more affordable and available. Another benefit of competition in health care is the innovation in healthcare technology (i.e. endoscopic surgery, anesthetic agents available in ambulatory surgery centers).