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Issues And Trends In Healthcare Delivery System01:29

Issues And Trends In Healthcare Delivery 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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Fee-for-service payment is not the (main) problem.

Bryan E Dowd1, Miriam J Laugesen2

  • 1Division of Health Policy and Management, School of Public Health, University of Minnesota, Minneapolis, Minnesota.

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|July 24, 2020
PubMed
Summary

Physician payment incentives significantly impact healthcare resource allocation. Modifying fee-for-service models can improve efficiency by aligning prices with marginal costs and encouraging value-based care.

Keywords:
Centers for Medicare and Medicaid ServicesMedicarefee-for-servicefeeshealth care expenditurepayment reformphysiciansreimbursement

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Area of Science:

  • Health Economics
  • Healthcare Management
  • Public Health Policy

Background:

  • Physician payment incentives are crucial drivers of healthcare resource allocation.
  • Understanding these incentives is key to optimizing healthcare delivery and efficiency.

Purpose of the Study:

  • To analyze the impact of physician payment incentives on healthcare resource allocation.
  • To explore modifications to current payment structures for enhanced efficiency.

Main Methods:

  • Literature review and analysis of existing studies on physician payment incentives.
  • Examination of current fee-for-service (FFS) models and potential adjustments.

Main Results:

  • Fee-for-service (FFS) payments can promote efficient pricing when combined with price transparency and consumer choice.
  • Efficient pricing alone is insufficient; incentives for efficient health production are also necessary.

Conclusions:

  • The core issue with current fee-for-service (FFS) is not the payment for services but the fee determination method.
  • Reforming fee structures is essential for improving healthcare efficiency and resource allocation.