The cost of healthcare is becoming a challenge for many healthcare systems. Those who manage the economics of healthcare are being haunted by the dilemma on which services to scale down and which criteria to use for this. Healthcare sectors have been scooping huge funds of the government expenditure for a long time. The concern has been raised in order to cut unnecessary expenditures on healthcare. Recent research that was done by Young (2012) shows that America was considered to be the only country that spends much money in medical care as compared to other industrialized countries, but the quality of the healthcare in the country still lags behind. Higher and higher costs of healthcare have been attributed to the use of potentially wasteful, inefficient, and unnecessary medical services. The quality of healthcare in America is wanting regarding on how chronic diseases are being handled. The patients with chronic diseases such as hypertension, heart disease, and diabetes usually do not receive proven and effective treatment such as drug therapy or self-management services to help them more effectively to manage their poor health conditions.
Any recent reform in healthcare should seek for including cost containment measures. Such measures can include lowering the length-of-stay and doing away with nonessential procedures. Healthcare financial managers should be keen to hold accountable those who might be involved in funds embezzlement through improved documentation. It should be noted, however, that cost containment measures on healthcare can be both good and disastrous. The measures can negatively impact the quality of care received by patients if these measures will mean minimizing some services like reducing the time taken in healthcare centers by patients; it might also lead to incomplete recovery-discharges on the basis of giving a chance for other patients. The paper analyzes whether trying to reduce the costs of healthcare will affect the quality of it.
Containment of Healthcare Costs
The cost of healthcare is becoming a challenge for many healthcare systems. Those who control the economics of healthcare are being subjected to the dilemma on which services to reduce costs and what criteria to use. The United States has the most expensive healthcare system in the world because it is domineered by the private sector, and the government only comes in to negotiate for cost reduction. This has daunted many people, and, as a result, many lives are being lost. The country has a very high mortality rate, and if better mechanisms are not employed in this sector, then the situation may worsen. This is especially common to insure, uninsured, and underinsured Americans who cannot access healthcare services easily in case of health complications.
Also, most of the physicians tend to subject their patients into routine screening and treatment that some of them do not even require and might be poisonous to the health of the patient. Managed care can be very efficient if controlled well. Conversely, people have to develop the right attitude towards managed healthcare. This type of care should not just direct all the steps any person has to take in order to acquire good health services; rather, they should be developed to give the person right to choose when people view themselves as though they are in control of their health.
The quality of care is one of the major focuses of the field of healthcare. It indicates how well the institutions of care are managed. Managed care has been defined as a healthcare system consisting of strategies aimed at reducing costs and spreading the risks amongst insurance companies and employers. Managed care is a system that has been employed by the United States to provide quality healthcare to its citizens at a lower cost. This has been done through special organizations called the Managed Care Organizations (MCOs). This system was established to ensure that healthcare is accessible to all citizens and that cost should not be a hindrance to good health. Managed care comprises of Health Maintenance Organization (HMO), Independent Practice Association (IPA), Preferred Provider Organization (PPO), Point of Service (POS), and Private Fee-for-Service (PFFS). HMOs settle the health of individuals who are part of their network. The physicians employed for care are also part of it.
The risk is bestowed on the individual, employer, or an insurance firm. Payments are done monthly, and referrals are officiated by PCP. PPOs encompass risk sharing to downside or upside. The patient pays after the services are delivered at a discounted rate. The healthcare provider can be a member of the team or can be self-employed. All referrals are maintained within the network. Managed care lays down all guidelines that control the standards and practices of healthcare providers. It also comes up with programs and undertakings that improve the quality of services. All the records about those who use the services should be kept and presented annually.
How Acceptable Quality of Healthcare Can Be Assured for All
An acceptable quality of healthcare can be assured to all citizens of the United States only if the patients receive a comprehensive range of services that would ensure not only the adequacy of the care but also the efficient quality of care. Since the health needs of patients differ from each other, there is a need for developing a system that would be beneficial to everyone. To ensure that the patient receives high-quality healthcare, there are several things that must be considered as essential ones. For instance, the cost of healthcare, medical technology, and the credentials of the physicians chosen to render services to patients may be among these issues.
Concerning the cost of healthcare, there are many insurance companies that are collecting more money in terms of premiums to cater for the cost of healthcare for all the employees in the country. However, they pay less in for the services that they render to their members. Since the cost of health insurance is the major factor that determines the accessibility of citizens to h