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What is driving health system change?

L Etheredge, S B Jones, L Lewin

    Health Affairs (Project Hope)
    |January 1, 1996
    PubMed
    Summary

    Economic forces are reshaping healthcare, driven by employer purchasing, health plan power, provider concerns, and consumer worries. Future changes may involve Medicare reforms and better regulation in an evolving market.

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    Area of Science:

    • Health economics
    • Healthcare management
    • Health policy

    Background:

    • Current healthcare system changes are primarily driven by economic factors.
    • A panel of experts in employers, health plans, providers, and consumers was consulted.

    Purpose of the Study:

    • To identify and discuss the key economic drivers influencing the current healthcare system.
    • To explore potential future influences on the healthcare landscape.

    Main Methods:

    • Expert panel consultation.
    • Analysis of current market dynamics and stakeholder perspectives.
    • Forecasting future trends based on identified drivers.

    Main Results:

    • Key drivers include employer price-focused purchasing lacking quality metrics, increasing health plan market influence, declining provider prospects, and consumer concerns over reduced choice.
    • Future influences identified are Medicare reforms, improved information availability, pro-consumer managed care regulation, and increasing social distress.

    Conclusions:

    • The healthcare system's future is being shaped by imperfect market forces.
    • Resolution of the system's future is contingent on evolving market dynamics and potential regulatory interventions.

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