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Changes in the healthcare system. Goals, forces, solutions
1UCLA Center for Health Sciences, Rand Corporation, Santa Monica, USA.
Pharmacoeconomics
|December 8, 1997
Summary
Achieving quality healthcare at an acceptable cost requires eliminating waste and reducing variations in care. A conceptual model linking cost to quality is essential for healthcare reform and ensuring universal access.
Area of Science:
- Health Services Research
- Healthcare Economics
- Public Health Policy
Background:
- The primary drivers for health system change are cost containment and improving healthcare quality.
- Increased health spending does not consistently correlate with improved healthcare outcomes.
- Current cost-reduction strategies may not effectively eliminate unnecessary procedures.
Purpose of the Study:
- To propose a conceptual model for reducing healthcare costs by linking them to quality of care.
- To define 'quality of care' and 'necessary care' for clinical process re-engineering.
- To identify financial incentives for implementing cost-effective quality care delivery.
Main Methods:
- Conceptual analysis of healthcare system goals and current cost-containment drivers.
- Defining key terms: quality of care and necessary care.
- Outlining a framework for re-engineering clinical processes and aligning financial incentives.
Main Results:
- Effective cost reduction necessitates identifying and eliminating waste.
- Resources must be allocated to necessary and appropriate care, minimizing variations.
- Economic policies should align with cultural values and expectations of value for money.
Conclusions:
- Quality healthcare at an acceptable cost is achievable through waste elimination and resource optimization.
- Re-engineering clinical processes and aligning financial incentives are crucial steps.
- The current US healthcare system, with its gaps in insurance coverage, is deemed unacceptable.