Costs. Of Healthcare Flashcards
how does health care expenditure increases labour costs
if health care expenditure goes up then the premiums will also go up. we do have collective ( forced payments) so employers always have to take the bill of hc expenditure and divide it by the people who work ( so higher expenditure ,higher contribution by workers.
is health care expenditure a threat ? why or why not
no because health is the most important good of all
and yes because budgeet competes with defense ,it increases labour costs and thus weakenss our economy .
what happens if we make the collective payments private
it will reduce solidarity
how can you explain health care expenditure
all you need for this is wealth so if the wealth is gone then so will the growth rates.
how does health care contribute to the economy
if people are healthy then they will work and contribute more to the economy . health care mostly prolongs life but has less effects on years in good health
hc expenditure as a % of gdp. how can we compare health care expenditure between different countries.
the comparison is difficult to make because every country spends their budget in a different way for example : Us gives the majority to cure and in NL the money is spend on long time care. if you want to make the comparison you have to start thinking : is it price or quantity.
what drives growth in expenditure
new technology + coverage
baumol’s disease
ageing
give the interpretations of the graphs from the lecture costs of health care.
- us budget deficit
- health care costs and wages
- darthmouth atlas at state level and provider level
see sheets
how can we bend the cost curve
reduce coverage and increase co payment
increase efficiency
bdget and price caps
what happens if we reduce coverage and increase co payments
it could reduce demand due to moral hazard but at the same time it can increase inequity in acces
how can we increase efficiency
theory driven : payment reform and accountable care organization ( aco)
evidence based : learning from comparing health care systems
what happens if you add budget and price caps
a consequence of budgetting are waiting lists. providers are going to respond by not extending capacity. there will be no focus on quality ,patient experience etc…
once you gain a hospital aa budget,they have no way to attract more funds then that. Insurance companies already do that and it is very succesfull.
what are the different opinions of stakes and stakeholders in the netherlands
professionals and insurance companies don’t care about costs
patient interest groups like to see high quality for patients
departments of health and finance do want to cut costs
What is health care expenditure
Health care expenditure= volume x price
New technology will cause a increase of health care expenditure. Because more patients will use the service so volume will increase. So the curve of the demand and the cost will shift to the right side of the curve, this is called the Baumol’s disease
