Implementing Cost Containment In Health Care

Improved Essays
The world’s major regions are expected to see health care spending increases ranging from 2.4 percent to 7.5 percent between 2015 and 2020. Even as countries strive to expand health care access or institute forms of universal coverage, infrastructure issues are making it increasingly difficult for public health care systems to sustain current levels of service and affordability.
Cost-containment measures
Stakeholders continue to implement cost-containment measures aimed at reducing clinical and administrative waste and improving operational efficiency such as consolidation; vertical integration, shifting of care to lower-cost and non traditional settings; strategic procurement models; clinical pathways; standardized clinical processes; use of generics; shared service centers; and technology initiatives.
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Population health management
Sector stakeholders, particularly in advanced health systems, are advocating the shift from a “break-fix” model of health care to one focused on prevention and the
HEALTHCARE 9 overall holistic health of populations rather than episodic and transaction-based treatments. Localized health management
Numerous countries are moving from a centralized to a more localized health management process to deal with uniquely local demographic, governmental, clinical, and financial factors.
Lack of access to basic health care services and variations in care quality are persistent problems in many of the world’s regions – not only those in which the majority of the population is served by a publicly funded health system but also in developed markets. Funding shortfalls combined with other market drivers

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