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101 Cards in this Set

  • Front
  • Back
2 parts of good health
1)goodness
2)fairness
WHO objectives of a HC systen (3)
1)improve health of a population
2)respond to the ppl's expectations
3)provide financial protection against the cost of ill health
Outcomes measured of a HC system (6)
1)fair financing
2)access
3)responsiveness
4)equitable
5)good quality
6)affordable
Mechanisms to finance HC (4)
1)out of pocket
2)individual private insurance
3)employment based
4)gov't financing
3 Models of HC systems
1)socialized programs
2)decentrailzed nat'l health programs
3)socialist medicine
Socialized programs def and 2 types
gov't enforces participation in system, but providers are private

1)socialized health insurance
2)socialized medicine
Socialist medicine def
gov't does everything for the HC system
Canada
a)type of HC system
b)how established
a)socialized health insurance
b)The Canada Health Act termed it "Medicare"
5 main principles of Canada HC
1)portability (get it everywhere)
2)comprehensiveness (hospital and MD coverage)
3)universality (everyone covered)
4)accessibility (reasonable acces to HC geographically)
5)public administration
Hospitals in Canada (2)
a)each different province sets standards for facilities and staffing
b)run @ capacity leading to waiting lists
Medicare in Canada covers what hospital services? (4)
1)room/meals
2)diagnostic procedures
3)nursing
4)inpatient meds
Physicians in Canada (4)
1)55% are general/family prac
2)act as gatekeeper
3)pt have free choice of Dr.
4)highest paid professional but still make less than USA MD's
Role of private insurance in Canada (2)
1)it is supplemental insurance
2)most ppl get it to cover Rx drugs
Outpatient Meds will be paid for via Medicare in Canada if... (3)
1)senior citizen
2)on welfare
3)pts w/ specific disease states
Outpt Med coverage otherwise in Canada (3)
1)4 provinces have universal coverage for Rx meds (Pharmacare)
2)only formulary meds covered
3)most rely on private insurance
Canada Medicare financing (4)
1)12 separates systems
2)paid by payroll taxes
3)$ distributed to provinces accoring to federal and provincal budgets
4)one payer system controls overhead admin costs
Canada Medicare financing of:
a)MD's
b)hosptials
c)Rx (3)
a)paid on a fee schedule directly from the provincial govt
b)given budget from provincial govt that can NOT be exceeded (= waiting lists)
c1)prices set @ federal level
c2)purchasing @ provincial level
c3)drug spending is 2nd largest HC expenditure
Issues facing Canada (6)
1)maldistribution of MD's
2)waiting lists
3)decr supply of physicians (b/c MD's migrating to USA)
4)federal recession
5)% of ppl rating system highly is decreasing
6)single payer structure = slow response to local issues
Latest considerations to fix Canada issues (3)
1)managed care
2)incr pt cost sharing
3)alternative methods for MD compensation
UK
a)primary ex of...
b)act that established it
a)of SOCIALIZED MEDICINE
b)National Health Service Act
3 Innovations of UK system
1)universal comprehensive coverage
2)financing thru general taxes w/ little service charge
3)nationalization of hospitals (run by govt)
3 components of UK system
1)hospitals
2)community services
3)primary medical and dental services
UK system availability (2)
1)all services available to whole population
2)must have referral for hospital/specialists
UK system and physicians (4)
1)hospital physicians salaried, office MD's have contracts w/ NHS (national health service)
2)pts have to register w/ GP's but can change
3)reorganized into primary care groups in 1999
4)reorganized into pirmary care trusts in 2002
Outpatient Rx's in UK system (4)
1)covered by NHS (formulary only)
2)prescribing behavior closely monitored (especially off-label)
3)70% of meds prescribed are generics
4)prices negotiated by NHS and drug manufacturers
UK system financing of GP's and hospitals (2)
1)hospital lump sum for provided services
2)GP's mix of capitation and fee-for-service
What is the UK's FDA? and diff b/w it and FDA
NICE, it covers safety and efficacy and cost
NHS financed thru and %age (3)
1)taxes (80%)
2)nat'l insurance (15%)
3)pt user charges (5%)
UK system current status (4)
1)underfunded b/c most of the funds are from taxes
2)lack of facilities cause waiting list
3)recent reforms aimed @ improving quality
4)in public opinion polls pts are satisfied
UK system recent reforms @ improving quality (2)
1)creation of clinical nat'l standards
2)external performance monitoring
Germany System overview (3)
1)mandatory health insurance (sickness funds)
2)health ins. in conjunction w/ accident, disability, and old-age pension ins
3)once you switch to private ins. you can't go back
3 main values of Germany System
1)self-governance
2)social partnership
3)social solidarity (all covered)
%age of ppl w/ sickness funds and % not
90% have sickness funds
10% have private insurance (must meet certain income standards to get private ins.)
____ no pay for Germany health ins.
police/army/welfare
Germany type of HC
DECENTRALIZED health insurance
Germany recent reform (4)
Sickness funds can't discriminate based on...
a)age
b)gender
c)risk factors
d)occupational/geographical limits
German hospitals have... (2)
1)surplus of hospital beds
2)surplus of MD's
Germany MD's (3)
1)act as gatekeeper
2)must qualify/apply for accreditation w/ regional assn
3)pts have freedom of choice of MD, but must wait 3months b4 selecting another MD
Germany Outpatient meds (3)
1)are covered by sickness funds
2)pharmacies must be owned by a pharmacist
3)pharmacist may only own one pharmacy
Sickness funds are financed thru..
payroll taxes
German MD's and hospitals negotiate w/...
each sickness fund
German Hospital payments (2)
1)hospital MD's are salaried
2)hospital payments are prospective cost-per-case payment
German financing of office-based MD's
paid on a point system
German financing of Rx drugs
sickness funds provide reimbursement for approved medications
Germany has ____ pricing which is.... (2)
Medication reference pricing
1)similar drugs are reimbursed @ the same level
2)if you need a costlier med, pt pays difference
Germany current status (3)
1)reforms being implemented
2)problems integrating E. Germany
3)high unemployment causing revenue problems for sickness funds
Current reforms being implemented in Germany (2)
1)ceilings on expenditures for office MD's & hospital services
2)budgets for meds prescribed by office MD's
Cuba HC is ____
SOCIALIST
Cuba HC is ruled by 5 principles
1)HC is a right
2)HC is the responsibility of the state
3)preventative & curative integrated
4)everyone participates
5)HC activites are integrated w/ economic and social development
Cuba HC
a)run by...
b)1970s addition
c)1980s addition
d)Most recent addition
a)Cuban Ministry of Health
b)polyclinics provide HC for a geographical region
c)focus changed to primary care
d)incr # of family MD's (The Family Physisican Program)
Cuba HC structure (4)
1)family MD and nurse assigned to a given community
2)office hrs in the morning
3)follow pts in hospital, make visits, inspect facilities in afternoon
4)in charge of community well-being
Cuban polyclinics are now ____ meaning...(3)
Ancillary
a)laboratory
b)emergency services
c)residency training
Cuban HC has $ alloted towards... (2)
1)research and knowledge
2)int'l missions
Cuban HC
a)controlled by...
b)financed by...
c)____ is paid for by the govt
a)cuban govt
b)100% by the govt
c)medical education
National budget for Cuban HC is...
most important part of country's budget
Current status of Cuban HC (4)
1)economic crisis (embargo and fall of Soviets)
2)embargo strengthened in 1992
3)lack of med supplies reduces surgical rates (have to make all supplies themselves)
4)water supply is major problem
Confounding problem of Economics and health care (2)
1)we want the HC market to respond as any normal/efficient market
2)there are unusual restrictions & forces are placed on the market it distorts reality
Unusual restrictions on the HC market? (3)
1)barriers to getting HC knowledge
2)barriers to finding out what MD's are good/not
3)hard to make good HC decisions
Basic Principles of economics and HC (3)
1)premise of scarce resources ($ are scarce)
2)despite unlimited wants by society
3)economic principles allocate resources in most efficient manner
Types of resources (3) and used to...
1)natural resources
2)labor
3)capital

to produce commodities
Commodities?
good and services
Do pharmacists provide a good or a service
both
Utility def.
term for satisfaction obtained from purchase of a commodity
Goal of economics and utility
maximize utility, maximize your satisfaction from what you buy given individual budget restraints
Cost Constraints? (2)
1)limited resources obtained @ certain costs
2)commodities obtained by individuals willing and able to purchase them
Marginal cost/utility def.
amount of EXTRA benefit (OR EXTRA COST) obtained
Opportunity Cost def. (2)
a)tradeoff involving purchase of investment decision
b)decision to forego purchase of one good/service for other use of scarce resource ($)
Theories of demand and supply are...(2)
1)2 most important concepts in economics
2)basis of interaxn b/w the marketplace of suppliers and consumers
Demand def.
market force exerted by buyers on price/amt of G&S they demand
Suppliers exert market force based on...
WILLINGNESS AND ABILITY to supply a product for consumption
Demand equation
Demand = ability AND willingness to pay (want/desire has no part in it)
Demand schedule
a)def
b)variables (2)
a)various amts of a "commodity" consumers purchase @ each specific price
b)price charged by supplier & quantity demanded @ each given price
Changes in demand refers to...
SHIFT in entire demand curve
Why might change in demand occur? (5)
CHANGES IN:
a)prices of related goods
b)consumer income
c)# of consumers in market
d)consumer preferences & attitiudes
e)consumer expectations (future earnings and prices)
Shifts in demand curve mean...(2)
1)to the RIGHT = INCR DEMAND
2)to the left = decr demand
If another product exists (or is created)...
that can substitute for the original product, the price of the good & demand for the other become directly related
Normal superior goods (and 3ex)
demand incr w/ incr in consumer dispoable income

houses, cars, HC (but no change in need)
# of consumers in market effects (2)
1)more customers increases demand (right shift)
2)# of consumers incr w/ more uses (market expansion for product)
Consumer preferences and attitudes can... (4ex)
CHANGE IN A SEC

1)minivans
2)dot matrix printers
3)film cameras
4)older generation drugs (prozac)
What if I expect future prices to be greater?
buy now
Causes for incr demand for X: (7)
1)decr in price (elasticity)
2)price decr in complementary product Y
3)price incr in substitute product Z
4)incr income (for normal X)
5)decr income (incr demand for an inferior X)
6)incr in consumers/buyers
7)consumer expectations that price for X will incr
Supply
a)is a ___
b)def.
a)is a schedule
b)# of goods/services supplied @ specific prices
Difference b/w supply schedule and demand schedule?
Supply sch- price consumer willing to pay

Demand sch- price charged by supplier
Supply curve slope is...
(+), DEMAND CURVE IS (-)
Increases in technology =
decr production cost = incr supply
Why might changes in supply occur (5)
1)production ability and techniques
2)# of sellers in market
3)cost of resources (material/labor)
4)price of related goods
5)sellers expectations
Equilibrium occurs @ price where... (2)
1)quantity demanded = quantity supplied
2)both buyer and seller are satisfied w/ price
Consumer Goal
Seller Goal
a)demand more goods @ lower prices
b)want to supply more goods @ higher prices
Equilibrium pricing
a)is...
b)determines
a)interaxn of supply and demand
b)allocation of economic resources
Disequilibrium
disruptions in the equilibrium of the market
Elasticity of demand (4)
1)price incr results in decr demand
2)enough to result in decr in total revenue
3)happens w/ most consumer goods (why retailers standardize prices)
4)quantity demanded is sensitive to the price
Inelastic demand (4)
1)incr price = incr revenue
2)quantity demanded insensitive to price
3)total revenue increases
4)is reason why drug industry price increases are higher and more freq. than other goods
HC & drugs has ___ demand
INELASTIC
Rx drug pricing structure
what the market will bear (see what ppl will pay)
_____ results in elasticity (1)
1)more availability of substitutes
Demand for ____ is elastic (2ex)
specific product/brand (specific antihistamine, OTC pain reliever)
Differential pricing (3)
a)use a formulary/preferred produt list (decr substitutes)
b)get better pricing than independent pharmacies
c)creates market power
Price (elasticity/inelasticity) relative to consumer's income (2)
1)demand for goods relatively costly for a consumer's income are more elastic
2)small item consumer goods relatively inelastic demand
Limited # of alternative uses results on elasticity/inelasticity
results in inelasticity
Why inelastic demand on Rx drugs? (3)
1)Dr writes a specific Rx; consumer cannot authorize substitutes
2)Rx consumes relatively small portion of income
3)some Rx's have few alt. uses (like amoxicillin only used for infections)
Other variables to inelastic demand of Rx drugs (4)
1)product decision maker is not consumer
2)consumer is not actual payer
3)price not primary consideration
4)health insurance reduces cost relative to income