In 2015, companies like HCA and LifePoint have been diligent in cutting cost to increase patient volume. Through cutting costs and adopting new initiatives, for-profits are now beginning to be more preferred for some customers rather than non-profits. Another advantage for for-profit hospitals, and as a result of The Patient Protection and Affordable Care Act a boost in the form of a better payer mix, has suggested a decline in bad debt expenses. Another advantage is the type of facilities for-profits offer, because they are for-profit they are keen in keeping up with technology, current developments in health and medical research and offering state of the are facilities that are technology based to attract
Under conditions of free competition, this price could at least ensure that the hospital's normal profits. If the hospital can achieve a normal profit, then the motivation to improve health care costs will disappear. Hospitals must consider its own position in the competition and thus have an incentive to protect their own reputation. Hospitals will also enhance the doctor's professional ethics constraints. At the same time, due to serious illness insurance plan will pay the bulk of medical expenses, insurance companies have enough power to monitor the behavior of a doctor-induced demand.
Prospective payment system (PPS) considered as a way to lower the cost of medical services compare to Fee-For-Services (FFS). FFS in health care gives an incentives for physicians to provide more treatments than patients need because payment is dependent on the quantity of care. Moreover under FFS, marginal cost are fully reimbursed so that physicians have no burden for doing overtreatment. This aspect of FFS leads to rise in health care spending. Increasing health care spending is a problem for country around the world.
While most countries break even through volume rather than cost, the US uses big bucks to break even. To give an example, while... ... middle of paper ... ... say that the accountable care organisations and value based purchasing will financially impact the industry. The shift from fee for service to a value based model will increase the sales of evidence based medicines and decrease the sales for new drugs. General Public One of the major stakeholders of the healthcare industry is the general public as everyone would need healthcare at some point of their time. The ACA concentrates on making it easier for the public.
The government should provide increased the wages for doctor and nurse. Most important thing is government hospital or clinic, people get cheap prices and poor people get involved due to their best service. Government hospital is not only poor people, but also for everyone. That’s why the government should more careful about it. Al over the world, Medical service available only in government provider.
Receiving the best care is subjective in most cases, but with money you can buy almost anything, including the best care. Although those living in poverty are given access to healthcare, that does not mean they receive the best or equal care as those who are wealthy. Living in a capitalist society, the richest Americans enjoy larger homes, nicer cars, better education and even health care. Even if we lived in a capitalist society where everyone had access to the same basic healthcare program, the rich would still be able to afford better care. The wealthy are able to pay more in co-payments, prescription costs, and the ability to go outside of the healthcare system in this country to seek help.
Universal health care could save lives and ease suffering, physically, financially, and emotionally. It would take away a great financial burden off of each individual as well as the nation and government as a whole by not wasting all the per capita that we currently waste without universal health care. It would even be beneficial to capitalism because people would be more willing to take risks without the fear of having to go medically uninsured (Why The U.S.). By allowing its people to suffer and die, especially just to make a profit that will be needlessly wasted anyway, the U.S. government is committing a great immorality. Are not human lives more important than allowing greedy independent companies make a profit off of their suffering and deaths?
If we get sick we demand more medical attention. Or, if we choose to live more dangerously this will also increase the demand. Therefore, who should pay for these increased costs for medical insurance? “Medical care spending is not the only thing that improves health. Other factors affecting health status, such as life-style, environmental pollution, and technological developments, will shift the total product curve (TV).” Figure 4.1, on the next page graphically shows that health status obeys the Law of diminishing productivity.
Neither option will be welcomed by the Local 384. As a new labor contract is being negotiated, GMFC management must propose an agreement to contain or reduce health care costs which Local 384 is willing to accept. GMFC Statement on Impact of Employee Health Care Costs GMFC is dedicated to providing its valued employees with quality health care coverage. However, according to data reported by Fossum (2012), health care cost inflation has increased at a much higher rate than overall inflation, pushing up the relative costs of employer-provided health care. In industries with relatively stable, high consumer demand for the product, employers can increase product prices to help cover rising costs of wages and benefits with little negative effect on a company’s employment levels (Fossum, 2012).
If we take transportation and computer systems together, health care sector will still be bigger in scale. This area of economics, comprises various industries that are related in relation of production or distribution but they do not compete directly with each other. The easiest example would be comparing pharmaceutical and nursing sectors - they both are part of the health care system, but the chances of their competition are relatively small. 2. History and policy The health care area is growing larger and faster every year.