HED 044 Lecture Notes - Lecture 28: Health Maintenance Organization, Defensive Medicine, Price Controls
2 Nov 2020
School
Department
Course
Professor
Document Summary
Why the us medical system needs reform medical costs. New medical technology, including prescription drugs (high tech diagnostic equipment and procedures more profitable, than time consuming practices of talking, listening, observing, touching. Patients demand the best, not sensitive to price. Fee for service hospitals, could charge higher rates to insured patients attempts to. Price controls tried in the 1970s: limit new facilities and technology. 1980: limit the length of hospital stays (longer stay= additional costs) Some approaches worked for a while but none controlled costs for the longer term. Agrees to provide all required for a fixed payment. Physicians and other providers are on salary. Patients must seek care from participating providers. Participating providers agree to provide services at lower rates managed care backlash. Laws against :drive through delivers and drive through mastectomies . Consumers rights to sue hmos for denial of care. Loss of ability to manage care in a cost-conscious way.
