For each of the following terms/areas: what are the dominant problems of each, and what are the ideal and realistic solutions for each?
1.) Cost Containment
2.) Increased Access
3.) Better Management
4.) Greater Accountability
1.) Cost containment
The concern for cost containment in health care is growing as exponentially as the cost of health care in the United States. According to the World Health Organization, The United States spends about 16% of its GDP on healthcare alone [http://www.who.int/whosis/whostat/EN_WHS09_Full.pdf]. Based on the pattern of growth of healthcare expenditure since the 1970, economists and statisticians predict that the US will spend almost 20% of its GDP on healthcare by 2017 if we do not implement a method to contain costs [Howard L. Smith, Myron D. Fottler and Borje O. Saxberg. Cost Containment in Healthcare. The Academy of Management Review Vol. 6, No. 3 (Jul., 1981), pp. 397-407]. Further, without intervention, the rapid rise of healthcare costs have the potential to bankrupt the country.
While soaring healthcare costs are an issue in and of itself, there are certain political and economic mechanisms (and, of course, with the addition of time) that can alleviate the issue. For example, any economy seated in the uncertainty of a capitalist society is subject to market fluctuation and therefore inflation and deflation of costs. Thus, as the economy ascends from recession, the cost of healthcare will decrease. Also, unrest among the uninsured and underinsured have and will continue to force change in health care policy, which will be geared towards lowering the cost of healthcare. Cost saving legislation would be in the best interest of citizens as well as the government; government subsidized programs (Medicaid and Medicare) absorb an enormous amount of the cost of emergency services to the uninsured and underinsured. With the wheels of government and economic fluctuation in place and, slowly but surely, turning, there…………………..