Health Care Systems Flashcards
Complexity of health care delivery (components)
Education/research Suppliers Insurers Providers Payers Government
Objective of health care delivery system (2)
Enable all citizens to receive health care services
Deliver services that are cost effective and meet standards of quality
General facts about US health care
16% of GDP - highest of all countries
Per capita spending ~$8000 - also highest
Per capita spending projected to continue to rise.
Life expectancy and mortality measurements worse than most other countries
Who finances health care?
Private - employer based or patient purchases individually
Public - Medicaid, Medicare, other (VA, IHS, etc)
Medicaid
For the impoverished poor diasbiled
Joint venture between federal and state govt
States choose how to run them
Some federal requirements
Medicare
For the elderly
External forces affecting health care delivery
Social values and culture Global influences Population characteristics Physical environment Technology development Economic conditions Political climate
Description of US health care delivery
Large and complex
Fragmented
Many organizations and individuals
Major characteristics of US health care delivery (10)
No central agency governs Access is based on insurance coverage Under imperfect market conditions 3rd party insurers act as intermediary between finance and delivery function Multiple payers makes cumbersome Balance of power between all players - no single dominant entity Legal risks influence physician behavior New technology creates automatic demand New service settings over continuum Quality not seen as unachievable
No central agency
Mostly private financing and delivery
Hospitals and physicians independent of govt
No monitor of budget or utilization
(Exception is Medicare and Medicaid)
Govt sets standards thru policy and regulation
Minimum standards of quality
Partial access
Access restricted to: 1-have health insurance thru employer 2-are covered by govt plan 3-can afford insurance out of pocket 4-can pay for services at time of delivery
Emergency room - catastrophic insurance
Primary care access is lacking - reason for deficit in US health
Imperfect market
Consolidation and alliances
Quasi-market
1-patients and providers are not independent
2-prices not set by interaction of supply and demand
3-not unrestrained competition
4-patients lack info on different services
5-patients lack info on prices and quality
6-patients don’t bear full cost of services
7-patients don’t make decisions
Types of pricing
Item pricing
Package pricing
Capitation
Capitation
All services include one set fee per person
Package pricing
Bundled fee for group of related services
Phantom provider
All services billed separately; pathologist, anesthesiologist, supplies, hospital facility use
Third party insurers and payers
Wall is separation between financing and delivery
Quality of care is secondary
Multiple payers
Many different plan options available
Cumbersome
Power balancing
Multiple players
Fragmented self-interests
Legal risks
Litigious society
Defensive medicine
High technology
Creates demand despite cost
Need utilization of capital investments
Legal risk if don’t provide
Continuum of services
3 broad categories
Curative
Restorative
Preventative
Quest for quality
Continuous improvement
Higher expectations
Compliance standards
Quad function model
By shi and Singh 4 functional components of healthcare delivery FIDP financing Insurance Delivery Payment
Types of financing
Employers
Government (Medicare and Medicaid)
Self funding
Types of insurance
Insurance companies
Blue cross/blue shield
Self-insurance
Types of payment
Insurance companies
BCBS
third party claim processors
Type of delivery
Physicians Hospitals Nursing homes Diagnostic centers Vendors medical equipment Health centers
What is managed care?
System to improve efficiencies by integrating basic functions, control utilization, and set prices for services
Integrates the 4 functions of healthcare delivery to better deliver care
Financing mechanisms (for MCO)
Capitation - for one set fee per month per member, MCO delivers all needed healthcare
Discounted fees
1-insurance- MCO assumes risks
2-delivery-MCO arranges services and controls utilization
3-payment-MCO is payer and pays providers based on capitation or discounted fees
Evolution of health services - 3 periods
Pre-industrial era 1700 1800
Post industrial era late 1800s to mid 1900s
Corporate era
Characteristics of pre industrial era of health service
Open entry into medical practice Primitive medical procedures No institutional core - almshouses, mental asylums, penthouses, dispensaries Family based care Substandard medical education