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Health care and America's rolling depression

M H Hodge1

  • 1Melville Hodge-Consulting, Saratoga, CA, USA.

Health Care Management Review
|January 1, 1996
PubMed
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Employers face rising healthcare costs, driving US health care reform towards managed care. This exposes physician and hospital over-capacity. Policies should address this over-capacity, not prolong it.

Area of Science:

  • Health economics
  • Healthcare policy
  • Health services research

Background:

  • Employers' inability to afford escalating healthcare costs is a primary driver of US healthcare restructuring.
  • Previous governmental reform attempts have failed, leading to market-based solutions like managed care.
  • Managed care is revealing significant over-capacity in physicians and hospitals as a core cost issue.

Purpose of the Study:

  • To identify the key drivers of healthcare restructuring in the US.
  • To analyze the impact of managed care on healthcare capacity.
  • To propose policy directions for addressing healthcare over-capacity.

Main Methods:

  • Analysis of healthcare economic trends.
  • Review of healthcare policy evolution.

Related Experiment Videos

  • Assessment of managed care's market impact.

    • Main Results:

    • Healthcare restructuring is driven by cost containment pressures on employers.
    • Managed care has exposed a critical problem of physician and hospital over-capacity.
    • Current policies may inadvertently exacerbate this over-capacity.

    Conclusions:

    • Addressing healthcare over-capacity is crucial for effective cost containment.
    • Policy interventions should aim to reduce, not sustain, healthcare over-capacity.
    • A shift in policy focus is needed to align with market realities and cost-reduction goals.