The current alternative to the fee-for-services is the capitation arrangement. The physicians believe that the pay-for-performance is controlling how that he or she conducts the practice, but it will eliminate many expensive and unnecessary procedures (Shi & Singh, 2012).The pay-for-performance in the United States healthcare industry comes after the capitation and managed care and if managed correctly will become an asset and if not it will become a major blunder. The goal of pay-for-performance is to change patient behavior and doctors and hospitals with a rewards systems or punishment. A pay-for-performance bonus for doctors can be an increase for the general fee-for-service hospitals can receive an extra in the form of the diagnosis group-based payment (Shi & Singh,
As statistics show, there has already been an increase in the cost of health care partially due to the shortage in health care practitioners and the need to offer higher reimbursement for treatments. If predictions are true, and there is a shortage of 125,000 physicians by the year 2025, the cost of health care will increase more rapidly. Because health care and therefore an individual’s life is considered priceless, there are demand shifters that often affect the demand curve of a health care product. As demonstrated in the example above, physician loyalties and experience are just two of the many types of demand shifters. This demand shifters can cause an even steeper rise in health care cost in the real world.
How Health Care Has Changed The changes within health care are now having an effect on consumers and health care providers. The most significant change that has taken place within the health care system is the advancement of new technology. The new technology such as diagnostic, screening techniques, medical interventions, surgical techniques, and techniques for drug delivery has helped health care providers to adequately serve and diagnosis patients. The computer system is also a new technology that has not only helped entities to communicate efficiently but it has also changed the way health care providers perform his or her job duties. However, not all of the new technology will successfully emerge into the health care system because it is very costly to implement.
(Sultz & Young pg. 228). All of these factors have contributed to the increased costs of the health care system put on the public and has also influenced some of the barriers that have led to the access of healthcare I spoke about above. The AMA (American Medical Association) also attributes the high cost of health care from the rising toll of preventable illness & inefficiencies in the health care system. They have identified four strategies to contain health care cost, they consist of reduce the burden of preventable disease, make health care delivery more efficient, reduce nonclinical health system costs that do not contribute to patient care and promote value-based decision making at all levels.(http://www.ama-assn.org).
ObamaCare: Pros and Cons of ObamaCare Discussing the Pros and Cons of ObamaCare What are the pros and cons of ObamaCare? The ObamaCare pros and cons mirror the complex nature of the new health care law. ObamaCare contains many benefits, especially for low and middle income families and businesses. ObamaCare also contains some obstacles for high earners, larger firms that don't insure their employees and certain sectors of the healthcare industry. The Pros and Cons of ObamaCare boil down to this: the average American has a lot to gain and little to lose, while those making more, including larger firms and consequently their employees, may notice negative financial effects.
The Rising Costs of Healthcare 1 The Rising Costs of Healthcare Top Reasons Why We Are Seeing Rises in Healthcare Cost Chris Franz Kaplan University MT305 Professor Schreeder October 10, 2009 The Rising Costs of Healthcare 2 The face of healthcare today is ever changing in all aspects, whether talking on a technological side or a political side. As healthcare professionals, patients, insurance agencies, and medical companies, we must evolve and keep up with the changes that come each year. In this paper we are going to discuss some of the biggest cost impacts we see every year in healthcare. Some of the areas we will concentrate on are insurance, advances in medical care, demographics, changes in patient provider relationships, government support, and consumer expectations. The subject we are going to tackle first is how health insurance in general, influences costs each year.
This fact is due to the increasing population of the aged in the American economy. The rise in the number of the aged population has led to a spontaneous rise in the demand for the Medicare program. The rise in demand of Medicare has triggered a subsequent rise in the cost of health care in the USA. According to statistics disclosed by Bozic (2011), the consumers of Medicare will rise up to 76 million by the end of 2030. Going by the contemporary crisis in the Medicare program of America, Bozic (2011) dictates that the solution to the crisis will demand increase in the tax margin on the employees.
“The older population represents 12.9% of the United States population and by the year 2030 will average 72.1 million. There were 64, 024 person who aged 100 years or more in 2009” (CDC.gov, 2011, p. 1). The two major concerns in healthcare are the aging population, and the rise in precription medication due to the rise in the aging population. To plan for the future it will be vital to quantify the illness of the elderly to plan for necessary health services that will become necessary in the coming years. Chronic diseases wellness progams are necessary for the elderly and will become needed more as the aging population grows.
It states that because the costs of healthcare continue to increase so does the number of uninsured which in return increases the costs even more. “Primary care coverage for the uninsured is the first necessary step to reform and can be more cost effective and tolerable than a major system.” (Stephens, J. H., & Ledlow, G. R., 2010). Hospitals and physicians would spend much less on uncompensated care and patient’s health care debts would be much less. The idea of providing basic care as a right for all citizens would not only help the healthcare systems cost issues it would also increase the quality of healthcare. Everyone would then have the availability to preventative services and treatments meaning that less people would be likely to wait to seek medical care for an acute illness and the number of people attending emergency care departments would decrease.
Economic Terms and Health Care History Health care economics has altered very much during the progression of history. Much of this progression has to do with the evolutionary changes of the United States. The key factors that induced change in healthcare economics are medical care and technology. There is a great importance to understand health care economic history and the cash flow system; managers are capable to use this knowledge to assist the company to prepare for its time ahead. The determination behind health care economics is money; money that assists in running the health care organization and money is also the key to the organization’s success.