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Expenditure limits and cost containment

P B Ginsburg1

  • 1Physician Payment Review Commission, Washington, DC 20037.

Inquiry : a Journal of Medical Care Organization, Provision and Financing
|January 1, 1993
PubMed
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The Clinton health reform proposed global budgets to control healthcare costs by limiting premiums and provider payments. Successful cost containment requires integrating rate setting, managed competition, and supplementary policies.

Area of Science:

  • Health Economics
  • Healthcare Policy
  • Public Health

Background:

  • The Clinton administration proposed health care reform linking premiums and provider payments to a national health budget.
  • Global budgets serve as a mechanism to calibrate cost containment policies within healthcare systems.

Purpose of the Study:

  • To analyze provider rate setting and managed competition strategies.
  • To discuss how expenditure limits can guide these healthcare cost containment policies.
  • To examine health systems integrating fee-for-service and organized care models.

Main Methods:

  • Analysis of provider rate setting mechanisms.
  • Evaluation of managed competition strategies.
  • Discussion of expenditure limits' role in guiding policy.

Related Experiment Videos

Main Results:

  • Global budgets can calibrate cost containment policies.
  • Provider rate setting and managed competition can be guided by expenditure limits.
  • Hybrid health systems require tailored approaches.

Conclusions:

  • Implementing global budgets is key to controlling healthcare expenditures.
  • Effective cost containment necessitates a combination of rate setting, managed competition, and supplementary policies.
  • Slowing healthcare spending growth requires multifaceted policy interventions.