Demand for health care services
The demand for health care services is continually getting tossed by the effects of certain factors such as health status, health insurance policies incomes and prices among other factors. The need to understand how these factors affect the demand for healthcare services is getting essential and a timely topic. Healthcare centers have now opted to adopt cost-containment strategies after their effectiveness in the private sector was proven (Lieberthal, 2016). This implies that every strategy comes along with changes in the healthcare services. As a result, these changes affect the accessibility of health care services, the intensity use of the services and the associated costs. The goal of this informative workshop is to provide a summarized research on how different policies affect the demand for healthcare services as well as the associated costs (Lieberthal, 2016).
Most healthcare centers tend to employ the cost-benefit analysis (CBA) approach while weighing the strengths and weaknesses of a health policy. CBA is a systematic approach that is used to serve two main purposes: determination of the soundness of a decision and also provides a basis of project comparison (Lieberthal, 2016). CBA uses a number of techniques such as stated preference and revealed preference techniques in order to estimate the compensations and the benefits that are associated with a policy. Stated preference technique is basically a direct evaluation of willingness to pay the premiums while revealed preference technique is an indirect approach (Herzlinger, 2007).
Fixed and variable costs are the COGS composition. They have a very large impact of the gross profit such that an increase in expense directly implies a lower gross profit which is the direct measure of profitability of a company (Herzlinger, 2007). Most healthcare institutions have preferred to work with the variable costs and put the fixed expenses in the category of overhead costs. This is realistic and recommendable approach whereby only the costs that are affecting the production are included. This may include medication, foods and other supplies that vary on daily basis.
In a healthcare industry, various methods and tools are employed identify, evaluate and solve financial challenges. Some of the methods include cost analysis, economic evaluation, budget analysis, health impact assessment and decision and transmission modeling. Each of them serves a specific role in the financial sector. In addition, tools such as MEPS, HIVnet, and HCUP are used to provide important and timely information on the cost of the services, how they are paid for and nature of the population (Herzlinger, 2007). These tools are commonly employed by health insurance companies which seek to understand the financial status of the health industry.
In the United States, there is a constant rising of health care costs on long-term basis. Health insurance companies have come in response to the varying needs and preferences of citizens in the sector of health (Herman & Wiley InterScience (Online service). 2010). They are taking part in health cost management in a number of ways. First, they introduce managed care practices which involve the elimination of some health care inceptives between the patients and providers which create unnecessary health care demand. They are also adopting methods that ensure patients get high quality services that are also cost effective.
Healthcare reimbursement and billing process is a system from which service providers get paid of the health care services. During the reimbursement, patients are required to pay healthcare providers. Patients who are covered for insurance are taken care freely. Changes in rules that govern the healthcare reimbursement often affect the providers, the payer or the insurance company. Limitations such as claim credit eliminate all the vaccination administration payments on the favor of the payer (Lieberthal, 2016). The complexity of determining the party which is responsible for healthcare reimbursement and billing also affects either of the parties.
These are a lot of changes in the health service of diabetic patients which have been implemented to improve the diabetes care. Most of them are made and implemented under the affordable care act. They include health care and finance reform whereby policy makers are advocating for reduction in the care provision for diabetic patients. Substantive changes and introduction of preventive interventions are the other major changes. All these changes are geared towards improving the healthcare coverage, promoting affordability and quality care (Herman & Wiley InterScience (Online service). 2010).
Based on how the 21st century is driven by innovation, diabetes medical care has improved in a number of ways. This includes selection of insulin that is not based on the patient, family or the costs, flexibility of the schedule whereby local diabetes treatment centers have been increased in numbers. More accurate monitors of the glucose levels has been cherished which includes CSII and CGM. Self management and support has also been taught to most diabetic patients so as to reduce the costs and the impacts of medical care (Herman & Wiley InterScience (Online service). 2010).
Preventive measures for diabetes have brought many benefits to the diabetes population. First, it has help in reduction of the overall expenses for health services, it has lead people to embrace health lifestyles and practices and prevention of postpone sufferings. Families and communities have also been saved from the burden of diabetes care (Herman & Wiley InterScience (Online service). 2010).
Drivers of healthcare reform are basically the motivators towards reformation in health care services. They include strategic goals meant to create an exceptional patient experience, information technology and its benefits, robust infrastructure and collaboration and governance of the healthcare services among others (Torinus, 2010). Barriers include the changing economics of U.S. and global healthcare, lack of funding to adva1nced services, poor management and inadequate professional skills in handling complicated matters of healthcare services (Torinus, 2010).
The government is usually charged to regulate the health markets, support the education system and acquisition of knowledge, ensuring access to healthcare facilities and ensuring proper healthcare to the vulnerable populations in the country Herman & Wiley InterScience (Online service). 2010). The government is also responsible in supporting and advancing the interests of the society such as quality care delivery.
There are about 10 million Americans who are not covered by a health insurance (Torinus, 2010). This is because of some problems which include lack of affordability of insurance services; some chronic diseases such as cancer are very expensive to treat and hence insurers fear to provide care to such. Some of them show their unwillingness to get covered and hence forced to choose the aggressive options. Lastly, the unraveling of market insurance to patients with heart and cancer diseases also remains to be a challenge in covering people with insurance care (Torinus, 2010).
References
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Herzlinger, R. E. (2007). Who killed health care?: America's $2 trillion medical problem--and the consumer-driven cure. New York: McGraw-Hill.
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Herman, W. H., & Wiley InterScience (Online service). (2010). The evidence base for diabetes care. Chichester, West Sussex: J. Wiley.
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Lieberthal, R. D. (2016). What Is Health Insurance (Good) For?: An Examination of Who Gets It, Who Pays for It, and How to Improve It.
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Torinus, J. (2010). The company that solved health care: How Serigraph dramatically reduced skyrocketing costs while providing better care, and how every company can do the same. Dallas, Texas: BenBella Books.
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