The Evolution of Healthcare Essay

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The Evolution of Health Care Jennifer Loveless, Rajan Rai, Ryan Carongcong, Zarouhie Zary Koftekian HCS/531 January 27, 2014 Dr. Rachael Kehoe The Evolution of Health Care Introduction Within the 50 years of its existence, Medicare evolved from being the federal health insurance program that provides medical care coverage to the nation’s elderly people, to its current condition that includes Centers for Medicare and Medicaid services (CMS), which places extensive emphasis on quality of health care to all Americans. The Medicare program currently uses a variety of strategies to improve quality for beneficiaries, the conditions of participation, accreditation, the quality improvement organization program, the public reporting initiative, and a variety of demonstration projects. CMS, along with its accreditors, in conjunction with programs like pay-for- performance and the hospital readmission policy, has acted as a crucial catalyst in creating the ability to measure and improve quality. (Quality of care, 2004) History of Medicare and Change Impact on the Delivery of Health Care In 1965, President Lyndon B. Johnson signed the legislation and the first Medicare card was issued to former President Truman during the opening ceremony. During its first year the budget for Medicare was around $10 billion and 19 million individuals signed up for Medicare. In 2010, it was estimated that 43 million people would receive coverage through the Medicare program with a budget over $450 billion. (Medicare Resource Center, 2011). By the early 2000s, the Pay-for-performance program was established to place more focus on quality of care, as well as to reduce overall costs. Prior to the program, there were serious deficiencies in the quality of health care in the United States. The classic pay-for-performance program provides an extra reimbursement to health care providers

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