Essay about Healthcare Czar

1592 Words Jan 19th, 2012 7 Pages
There are several rationales for or against government intervention in or regulation of the health care industry in the United States. This section will focus on the grounds on which government intervention in or regulation of the health care industry in the United States might be justified. The overriding objective in regulation was, and continues to be, rate setting (Folland, Goodman, & Stano, 2010) in the health care industry. Generally, markets are problematic in health care because markets do not provide goods efficiently or equitably. Though markets usually work well, however, there are many circumstances in which market forces, left to them, will fail to maximize economic and social welfare, and, as a consequence, there will be a …show more content…
Today, there are several government regulatory and intervention policies in place. One example is informative intervention. Government agencies, such as Centers for Disease Control and Prevention (CDC) have steps in place to disseminate information on disease patterns (i.e., flu), or certain risks of public health information. Another example is by regulatory means. Regulation refers to the use of nonmarket means to address the quantity, price, or quality of the good brought to market (Folland, Goodman, & Stano, 2010). Mounting public concern regarding the cost of and access to health care in the United States has moved the issue of Health Care Reform to a priority position on the policy and legislative agendas of the current administration (Hayes, et al., 2011). Regardless of the directions taken by reform initiatives, it is inevitable that their ultimate impact on cost, quality, and access issues will depend upon the extent to which practicing physicians adopt clinical management strategies that directly influence and continuously improve the efficiency, effectiveness, appropriateness, and humaneness of patient care (Hayes, et al., 2011). Regulation and its mandates appeal to government legislators and its stakeholders in that regulation such as Health Care Reform tackles problems without incurring government spending, but affects spending of those that are regulated (i.e., hospitals to limit maternity deliveries to two hospital

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