Economics: Economics and Healthcare Delivery Systems has a direct affect onsociety; because health, like any other good or service, is desired because itgenerates utility.
The Health Production Theory explains the role of the making,or production, of health and its influence by a variety of factors, includingthe amount of medical care consumed. Also, theres a direct relationshipbetween healthcare economics and societies access to health insurance. -=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-Category:MiscellaneousPaper Title:EconomicsText:Economics and Healthcare Delivery Systems has a direct affect on society;because health, like any other good or service, is desired because it generatesutility. The Health Production Theory explains the role of the making, orproduction, of health and its influence by a variety of factors, including theamount of medical care consumed. Also, theres a direct relationship betweenhealthcare economics and societies access to health insurance.Order now
Rising incomes mean more disposable income for health services, both basicand optional. Because health insurance continues to offer narrow ranges ofbenefits for small monthly fees, many people pay directly for optional healthservices. The first to notice this trend are entrepreneurs, both physicians andbusinessmen who come from the resource side. These entrepreneurs have led in themost noticeable physical and organizational restructuring of health care: thedecentralization of hospital and physician services to single-specialty orsingle-patient-type “institutes” that offer all services in anintegrated form. Institutes now house women and children’s services, cancer,orthopedics, eye, diabetes, renal and stroke services, asthma and allergies,heart and fitness, along the lines of existing infertility institutes.
The taskof tying these disparate institutes together falls to the regional health caresystem where the links are financial and information systems, not geographic orfacility. Physicians, many of whom prove to be not only surplus under managed care butwhose skills have not kept up with advances in medical science. At the sametime, doctors trained in genetics find they cannot afford to practiceindependently, since health plans are reluctant to open the gate to what theyperceive as expensive services that will not prove out for years. Manpowersurplus gives the advantage to health plans, which can pick and choose. IPAsare a low-involvement framework for physicians who only want to contracttogether.
Medical groups can not only contract but enhance the practiceexperience, and health plans tend to like them. Health Insurance: As the country enjoys the “long boom” produced bythe leveraging of knowledge into wealth, there are actually two pathwaysemerging in payment:;#61623; One pathway is mediated by insurance, still related toindividuals through work or through government. Mandates have stair-stepped mostemployers into mandated coverage, leaving out small rural businesses where nomanaged care plan exists, or certain other exceptions. Unfortunately, Congresshas been unable to reduce fully the 17 percent of the population withoutinsurance, since small business growth, immigration and premium increases offsetany gain. Universal coverage mandates await the political maturation of minoritygroups into both elected leadership positions, and voter participation.
;#61623; The second pathway is payment arranged outside of insurance. This is the fastest-growing form at present. Direct consumer payment covers mostself-care, alternative health services, “nutraceuticals,” cosmeticsurgery, much nonorganic mental health, non-Medicaid long-term care and physicaltherapy past approved limits. For seniors and even families, some healthservices are built into housing costs. Foundations and not-for-profits coverproblems not easily handled by insurance, such as migrant worker care oropen-door clinics for the inner city.
Health insurance depresses innovation, asproviders tend to give only the care that is, in fact, “covered. ” Itdoes so by excluding “experimental” procedures, by underpaying for newservices so providers are reluctant to commit the resources, and by restrictingby underpaying for new services so providers are reluctant to commit theresources, and by restricting patients’ access on a per-case basis. (Examples:bone marrow transplants for third-stage breast cancer, testing of family membersat risk for cancer, etc. ) Prevention efforts are artificially limited as theycan be paid for only if delivered to covered individuals in their role aspatients, when prevention at the family or community levels may be called for.  Insurance related to individuals does not work for people wholack the competence to manage it or their health care.
Open-access services,instead, should be subsidized. Note the untenable economics of emergency rooms,the safety net for people who are outside the formal system. Insurers,particularly government plans, could stimulate such innovation by offeringbudget subsidies for services that are meant to reach the uninsurable.-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-