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Related Concept Videos

Methods Of Healthcare Delivery System01:26

Methods Of Healthcare Delivery System

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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.
Managed Care System:
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The issues and trends in healthcare delivery are constantly changing. The COVID-19 pandemic is one recent issue that wreaked havoc on healthcare systems, causing a shortage of healthcare workers, high demand for medicines and supplies, and increased medical expenditure due to a lack of insurance. Other issues include rising healthcare costs and care fragmentation.
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Health is a condition of the body, mind, and spirit where an individual remains free from illness. Similarly, wellness is an active state, including living a lifestyle that promotes physical, mental, and emotional health. Physical health is critical for the overall well-being and can be affected by lifestyle, activity level, diet, and behavior. The highest attainable standard of health is a fundamental and universal human right. Consider Lisa, a fifteen-year-old born with congenital...
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Containing health costs in a consumer-based model.

Stuart M Butler

    Health Care Financing Review
    |November 6, 2014
    PubMed
    Summary

    Consumer choice can control healthcare costs. Current tax policies create incentives for higher spending, but reforming these policies can empower consumers to restrain costs in an efficient, universal healthcare system.

    Area of Science:

    • Health Economics
    • Public Policy
    • Consumer Behavior

    Background:

    • The prevailing view suggests consumer choice is ineffective for healthcare cost control.
    • Current tax treatment of health insurance and out-of-pocket expenses creates incentives for increased healthcare spending.
    • This leads to escalating costs within the existing healthcare system.

    Purpose of the Study:

    • To challenge the assumption that consumer choice cannot influence healthcare costs.
    • To identify the role of tax policy in current healthcare cost escalation.
    • To propose a framework for leveraging consumer choice for cost containment.

    Main Methods:

    • Analysis of the impact of tax treatment on consumer incentives in healthcare.
    • Economic modeling of potential reforms to tax policies related to health insurance and out-of-pocket medical costs.

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  • Conceptual design of a universal healthcare system incorporating consumer choice as a cost-control mechanism.
  • Main Results:

    • The assumption that consumer choice cannot achieve healthcare cost control is demonstrated to be invalid.
    • Current tax policies are identified as a primary driver of perverse consumer incentives and cost escalation.
    • Reformed tax treatment can create a system where consumer choice effectively restrains healthcare costs.

    Conclusions:

    • Reforming the tax treatment of health insurance and out-of-pocket medical costs is crucial.
    • An efficient and universal healthcare system can be designed by empowering consumer choice.
    • Consumer choice, when properly incentivized, serves as a powerful tool for healthcare cost containment.