HPM Midterm Flashcards
Private Policy
- Hospital employee flu shot = private “policy”
- Private accrediting bodies (Joint Commission, NCQA)
Public Policy
- Public policies are authoritative decisions made in the legislative, executive or judicial branches of government
- Public policies that pertain to health are health policies
Role of the legislative branch
- FORMULATES POLICY
- enacts laws
- creates and funds health programs
- balances health policy with other domains
Role of executive branch
- IMPLEMENTS POLICY
- proposes legislation
- approves or vetos legislation
- promulgates rules and regulations
Role of judicial branch
- INTERPRETS POLICY
- interprets constitutional and statutory law
- develops body of case law
- preserves rights
- resolves disputes
Operations Decisions
- Once laws and regulations establish programs (like Medicare, Medicaid), health agencies (CDC, FDA, state Health Departments) have discretion to manage the programs
- Agency operational decisions by government officials are “health policy”
- example of decisions in Medicare: eligibility and coverage determinations, payment, fraud and abuse
Categories of health policies
Allocative & Regulatory
Allocative health policy
- Policies that distribute or re-distribute finite resources
- Often provide net benefits to one group at the expense of others to meet policy objective
Regulatory health policy
- Directives that influence the actions, behaviors or decisions of others
- Examples: licensing of practitioners, certificate of need, FDA safety/efficacy regs, antitrust, workplace safety
Why the government is involved in health policy
- In a market economy, the private market should determine the production and consumption of health services
- Government intervenes when the private market fails to achieve desired public objectives
How & Why the US health sector has failed
Failed to: guarantee access & control healthcare costs
Because: buyers and sellers do not have sufficient information to make informed decisions & small number of sellers control market, barriers to entry
National healthcare spending trends
- private has decreased, public has increased, now about equal
- government share now accounts for more than half of U.S. health care expenditures
- growing entitlement spending
Why should be care about health policy
- Cost – largest component of the economy – and growing
- Quality – substantial evidence that the quality is not as good as it could be
- Access – literally millions of people have inadequate access to health care services
- Variability – all of these characteristics vary by location, ethnicity, income, etc.
Trends of healthcare cost over time
- dramatic increase in US health expenditures, now approaching 3 trillion, nearly 18% of the GNP
- US spends the most compared to all countries
Why does US healthcare cost so much?
- higher prices than other countries for same services
- higher administrative overhead costs
- high-cost, high-tech equipment and procedures
- American tort laws can lead to “defensive medicine”
Four main drivers of cost
- technology and prescription drugs
- chronic disease (more people who are “sick” in population: diabetes, hypertension, HIV)
- aging of the population
- administrative costs
- (higher inflation rate in healthcare)
Combination effect
combination of increasing life expectancy and the increase in chronic disease with age produces a progressively on “on average” older, sicker population
Measurements of healthcare quality
- life expectancy at birth
- childhood mortality
- US sucks and is worse quality than many countries, even though it also costs more
- medical error rates
- loooots of geographic variability - cost, quality, etc