354 final chap 12 Flashcards
3 major cornerstones of health care delivery
cost, access, quality - they are interrelated and complex
expansion of access will…
increase cost
high quality health care should be…
cost effective
consumers and finaciers
price, bills
national
NHE - national health expenditure (how much the nation spends on health care)
providers
cost of producing services
per capita
$11,172
GDP
17.7%
total NHE
$3.6 trillion
cost containment strategies
top down vs bottom up
top down
health planning, single payer systems, the gov. established global budgets and funds distributed within these limits
bottom up
U.S, providers and insurers establish fees
cost control in the U.S…
gov. regulation and market-based competition
(limited success b/c of cost shifting)
reasons for cost escalation (9)
1.third party payment- less provider induced demand
2. imperfect market- high prices, unchecked quality/prices
3. growth in technology
4. elderly/chronic diseases - they use more
5. medical model - more preventative care
6. multiple payers and administrative costs - insurance, billing
7. defensive medicine - overuse of unneeded services
8. freud/abuse - false billings, unnecessary services
9. practice variations - cost and utilization differences between providers
access
timely use of needed, affordable, convenient, acceptable and effective health services