Respond to the following in a minimum of 175 words:
• There has been a focus on cost containment and cost reduction in health care for decades. What are some of the most prevalent cost reduction strategies in health care organizations?
• Health care costs have continued to rise in the United States to a level greater than any other country on a per capita basis. Why have cost containment efforts been ineffective in keeping total costs of health care down?
• ADD REFERENCE TO SUPPORT YOUR ANSWER
As a health care professional who can potentially influence changes in the costs and economics of the future in health care, it is crucial to consider strategies that can optimize the cost-benefit ratio for patients, as well as for health systems.
Read “A Dozen Facts About the Economics of the US Health-Care System” https://www.brookings.edu/research/a-dozen-facts-about-the-economics-of-the-u-s-health-care-system/
from the Brookings Institute on the economics of the U.S. health care system, and discuss the following with your group:
• Analyze the causes of the high cost of health care in the United States.
• Propose a strategy you think can help lower the cost of health care.
Individually, write a 350-word summary of your group discussion. Include the following in your individual summary:
• Explain the idea you proposed.
• Recap any feedback you received from the group.
• Based on the feedback, describe any changes you would make to your idea.
Cite references to support your assignment and format your citations according to APA guidelines.
Respond to both question with 50 words minimum. Responses are based off P1. Add reference to both responses.
There has been a focus on cost containment and cost reduction in health care for decades. What are some of the most prevalent cost reduction strategies in health care organizations?
Standardize and bundle contracts as part of the health system’s cost reduction strategy, outsourcing specialties that are located in the hospital such as pharmacies, the food service and etc. to open up hospital funds for re-investment in technology, clinicians, and other important functions. Re-structuring the healthcare staff, by initiating training, cutting back on overtime and etc. These are looked at as cost-cutting strategies.
Health care costs have continued to rise in the United States to a level greater than any other country on a per capita basis. Why have cost containment efforts been ineffective in keeping total costs of health care down?
Companies that fall short of a subtle knowledge of the components driving expenditure gains are unlikely to adequately mark ranges with high-yield impact, or carry out solutions that purposely affect healthcare costs.
Some health care systems choose not to invest into the proper technology for accounting software. Nor do they properly bulid the right team to make sure the system is implemented correctly.
References: Cost Reduction Strategies for Health Systems (compassonehealthcare.com)
When Healthcare Cost Containment Fails (fshealth.com)
Properly utilizing funds, decreasing drug prices, and providing price transparency coupled with the triple aim goals of cost, patient care experience, and community health would be a strategy that can help resolve many of the uprising issues of the current healthcare system. Competition remains something to strive for since price transparency can increase competition levels for a better cost utilization. Drug prices must be capped so competition can resume in this closely linked market.
There are a multitude of factors increasing the cost of healthcare including an aging population and a rise of chronic illnesses. Containment efforts cannot control the rate of aging but new services may be created in haste and not made efficient. Medicaid and Medicare are prohibited from negotiating directly with the drug company (Gutierrez, Waldrop, 2018). Not only does this introduce a middle-hand, demands that directly relate to health and efficacy vs price of the drug can get muddied. The government regulations do need to be adjusted to test some containment methods and their efficacy. Price can be determined on the value and this would increase the amount of innovation. Drug companies would be motivated to find the cheapest way to produce and effective drug to help the patient or provide a cure while maintaining rigorous safety standards.