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Related Concept Videos

Secondary Healthcare System01:11

Secondary Healthcare System

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Secondary healthcare is offered by a specialist, generally in hospitals or clinics for patients referred by primary healthcare providers. It occurs when a person has an illness or injury that requires specific medical care. Secondary care is often referred to as acute care. Secondary care can range from uncomplicated care to repair a minor laceration or treat a strep throat infection to more complicated emergent care, such as treating a head injury sustained in an automobile accident. Whatever...
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Healthcare Agencies II01:17

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There are various healthcare agencies in the United States—some of which are managed by religious institutions and others by different government branches.
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An integrated healthcare system (IHS) is a set of organizations that provides for or arranges to provide coordinated and continuous service to a defined population. The IHS takes responsibility for that particular population's health status and outcome, both clinically and fiscally. An integrated healthcare system is a well-organized, well-coordinated, and collaborative network. The integrated delivery system is a network that connects different healthcare providers to deliver organized,...
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Specialized care provided over an extended period is called tertiary care. Usually, a primary or secondary care physician will refer a patient to tertiary care. A patient's maximum physical and mental function is restored in tertiary care, which is caused due to the impact of a chronic illness or condition. Tertiary care aims to achieve the highest level of functioning possible while managing chronic illness. For example, a patient who falls and fractures their hip will need secondary care...
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At the different levels of the healthcare system, we see varying methods of healthcare used. These methods include managed care systems, case management, and primary healthcare.
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Rural Health Centers
Rural health centers are specialized care facilities in remote locations with very few medical personnel. The primary care providers who run the centers are mostly Registered Nurse Practitioners. Here, emergency treatment is provided to critically ill or injured patients before they are transferred to the closest hospital. Fortunately, due to advancement in technology, many rural healthcare facilities and professionals have easy access to diagnostic and treatment...
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Do hospitals cross-subsidize?

Guy David1, Richard C Lindrooth2, Lorens A Helmchen3

  • 1University of Pennsylvania, United States.

Journal of Health Economics
|July 26, 2014
PubMed
Summary
This summary is machine-generated.

Hospital cross-subsidization, crucial for funding unprofitable services, is hard to measure. This study found that competition from specialty hospitals reduced provision of essential services like psychiatric and trauma care.

Keywords:
Cross-subsidiesHospital marketsSpecialty hospitals

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Area of Science:

  • Health Services Research
  • Healthcare Economics
  • Hospital Management

Background:

  • Cross-subsidization within hospital systems is vital for sustaining unprofitable but necessary medical services.
  • Quantifying and detecting this financial strategy has historically presented significant challenges.

Purpose of the Study:

  • To empirically test for the presence and extent of cross-subsidization in response to market competition.
  • To investigate how incumbent hospitals adjust service provision when faced with specialized competitors.

Main Methods:

  • Utilized patient-level data from general hospitals in Arizona and Colorado.
  • Analyzed changes in service provision before and after the entry of cardiac specialty hospitals.
  • Examined adjustments in three specific unprofitable service lines: psychiatric, substance-abuse, and trauma care.

Main Results:

  • Hospitals facing significant competition from cardiac specialty hospitals reduced their provision of uncontested, unprofitable services.
  • An estimated reduction of one admission in uncontested services for every four potential cardiac admissions lost was observed.
  • The impact was most pronounced in hospitals most exposed to specialized market entry.

Conclusions:

  • Entry of single-specialty hospitals can negatively impact the availability of essential, unprofitable services.
  • Further research is needed to evaluate service-line cross-subsidization as a sustainable financing mechanism for these critical services.