Introduction: Healthcare the instrument by which commercialization, commodification and medicalization further stimulates the disparities among social class, by decreasing the mortality and morbidity death rates among certain socioeconomically challenged demographic areas. How does one even begin to unpack the mountains of data that support these various disparities among social class. How can we implement a healthcare delivery system capable of caring for all, without bias, without ethnicity, without social class or one’s ability to pay? Each citizen has a right to affordable healthcare, just the same as those who are fortunate enough to have it, or fortunate enough to afford to pay for it.…
Pricing is influenced by desired net income, competitive position, and market structure (Cleverley, Cleverley, & Song, 2012). Desired net income, is the starting block for most short- and long-term pricing decisions. Net income is the difference between revenues and expenses (Cleverley, Cleverley, & Song, 2012). In the business world, there must be enough revenue in sales of products and services in order to maintain the business. If prices are not controlled, the business could suffer greatly.…
1. Summarize key milestones involved in the past and present shaping and transitional dynamics behind changes in the present health care industry. Deoxyribonucleic acid also known as DNA is our genetic identification. Once thought by students, as a boring waste of time, has made leaps and bounds in the health care industry. DNA fingerprinting not only proves paternity, but it is also useful for crime scene investigations.…
The reason why most healthcare providers are able to charge different groups of purchasers’ different prices for the same product is because it is a type of price discrimination. It portrays some positive aspects of price discrimination. If a company lowers all their prices to the level where everyone could purchase their services, then they would lose too much profit from each service they provide. This kind of change shows how the gains from trading can be split among the consumers and producers which can be arguable. However, even so, discrimination on prices does not lead or need improvement.…
The Wall Street Journal writer, Drew Altman, states that “seventy-six percent of the public blames drug companies for high drug prices – with just ten percent blaming insurers” (Altman). Since the main buyers of medications are private insurers and the federal government, the pricing decision commonly does not consider the patient’s affordability. Pharmaceutical firms such as Medicare are not allowed to discuss prices with manufacturers while the Food and Drug Administration (FDA) does not consider cost in medication approval at all. Rare value and lack of alternatives influence high costs and “although some price increases have been caused by shortages, others have resulted from a business strategy of buying old neglected drugs and turning them into high-priced ‘specialty drugs’” (Pollack).…
I called several different facilities to gain an insight on the process that one has to go through to get a bill paid from services rendered. After deep consideration I decided to speak with a coder by the name of Naomi at Sacred Heart Hospital her first inclination to me was the importance of their job and the steps and processes that they have to go through from start to finish making sure that the hospital and doctors get paid in a timely manner and about the changes that have occurred in regards to how the codes are set up. They no longer use the ICD-9 for CPT they have went to ICD-10 because it is a much easier process that catches errors more accurately. This is done electronically and goes directly to the provider so that their portion…
Healthcare price elasticity can be defined as the amount of product and/or services that are needed or need (the demand for such supplies) to be produced in order to properly vendors. There is typically 3 main factors that may could affect the demand of elasticity: availability, income (the amount of money that can and cannot be spent), and time. Prescription drugs would be an increase in price elasticity in healthcare, as well as any price adjustment in healthcare and/or new technology. A decrease in healthcare elasticity would be considered as insurance plans and how benefits are offered with coinsurance and deductible, plus the amount of premiums one might have to pay. One other example that I would consider a decrease in elasticity would be the cost difference between seeing a Doctor vs. a Physician Assistant.…
In the beginning of today’s lecture, professor talks about the signals of market failures, the most impressive signal for me is that the price not known by decision-makers. Actually in treatment, it is not only healthcare providers’ responsibility, but a two-way interaction between physicians and patients. The patients do not know the price when get the prescription from physicians. Additionally, the pharmaceutical price market is different from other markets. For example, the price would do go down even if competitors enter the drug market.…
Concerns about cost have led to the popularity of managed care options, first by corporations for their employees and now by governments, through the Medicare and Medicaid programs. Despite recent federal budget surpluses and proposals to expand funding and benefits in Medicare, there is serious concern among economists, legislators, and bureaucrats about the long-term solvency of both publicly funded programs. Concerns about cost are present in every form of nursing practice; they affect how work is organized, treatment plans for patients, and patients' perceptions of and participation in care. For example, even individuals with health insurance are wary of increased out-of-pocket expenses and no covered services. And there is heightened concern about pharmaceutical costs, fueled, in part, by the development of sophisticated new drugs.…
CMS (2015) informs us that in 1990's managed care plans managed reducing costs by negotiating discounts from providers and used lower cost settings (i.e., hospital versus ambulatory surgery center). As consumers required less restrictive care their utilization increased and such health expenditures increased. This is not because the managed care organizations (MCO's) have failed or they do not contain costs, it is a function of consumer demand. MCO's work diligently to control costs by ensuring the care is delivered in the safest cost effective setting, managing staff patient ratios, leveraging size to obtain the lowest possible price and standardizing the supply chain. MCO's can effectively manage costs, especially when compared…
The United States have spent far more money on the health care than any other countries. At 17.1% of their gross domestic product on health care, the United States devoted at least 50 percent more of its economy to health care than do other countries (Squires &Anderson, 2015). Even with so much spending on healthcare, people in the United States are still unable to afford the health care prices, particularly the need for prescription drugs. It is difficult for consumers who have already spent money on health coverage, and with high drug cost due to pharmaceuticals’ regulation on price increased the burden for patients to afford the drugs that they need. Drugs are created and manufactured by the pharmaceutical companies where they have the authority…
On December 8, 2003 began a historical day for which President George W. Bush signed the Medicare Prescription Drug, Improvement, and Modernization Act. The main provision of this legislative act was allowing Medicare coverage for outpatient prescription drugs. This was a well overdue benefit for Senior’s who spend an average of $2,322 per year on prescription drugs. President Bush proposal was to initiate private sector’s capacity to expand health care coverage while delivering quality medical services. Some Medicare beneficiaries felt this Act still didn’t bring value as 14 million low-income beneficiaries benefited from the changes; as the remaining face significant gaps in coverage and were still liable up to 3,600 in annual expenses.…
Americans use more prescription drugs than any other developed country. Prescription drugs only represent 12 percent of total health care costs in the United States, but the rising prices of those drugs is an issue that keeps reoccurring not only for patients, but for prescribers, payers, and policy makers. There are people that believe that the rise in price of these drugs is appropriate, but if they keep on rising in price, the United States will start suffering not only financially but medically. Despite a lot of other aspects of the economy rising in price, pharmaceutical drugs should be lowered, or should at least be kept at a reasonable rate. The rise in prices of prescription drugs is an issue that does not seem to be going away…
Adaptive strategy differs in that they are modified by externally induced innovations as well as coping strategies and arise from mutual interdependence and dynamic interaction between the environment and the organization. During the recent economic crises, most health care organizations applied adaptive strategy by cutting costs and staff to stay competitive. Market-entry strategies focus on gaining an in-depth market understanding in order to venture into a new market. They differ in the way they are conducted as the organization has to conduct interviews for decision-making. A heath care institution may apply a market-entry strategy to gain a thorough understanding of the key factors and possible scenarios that would influence their business in future, and an understanding of the market potential.…
In the previous decade, weight on governments to decrease social insurance expenses and increment productivity has prompted administrative changes in a few of the significant pharmaceutical markets (Seget,…