Effect of Reaganomics on the U.S. health-care system

Health care under President Ronald Reagan is discussed as it relates to consumers, third-party carriers, hospitals, and hospital pharmacists. The Reagan Administration's goals are to: (1) promote cost containment and quality control through competition, and (2) shift the major elements of program control to the state and local governments and the competitive private sector. Described are the regulatory and legislative initiatives of the Administration, such as the Omnibus Reconciliation Budget Act, Block Grant Programs, Medicare and Medicaid cuts, and procompetition legislation. Under increased competition in the health insurance system, the locus of responsibility for costs will shift from employers and unions to employees. Incentives for greater cost sharing will force hospitals to restrain costs. Multihospital systems are likely to proliferate. Proposed ancillary service caps will increase competition for resources among hospital departments. Pharmacy departments must implement strategic long-range planning to withstand the pressures for reductions in staff and services. Clinical pharmacy services will become increasingly difficult to implement without full documentation. As a result of all these changes, consumer demand for health-care services may decrease, and the way such services are delivered will probably shift.