Economic Trends in Healthcare Payment Systems

Economic Trends in Healthcare Payment Systems





Write a 700- to 1,050-word paper in which you:

  • Analyze a financial and economic issue in the health care industry.
    • Choose a current financial or economic issue in the health care industry. Consider the following:
      • What are the economic trends of the health care payment system?
      • What are the supply and demand challenges for health care services?
      • Why are costs increasing in the health care system?
      • What regulatory issues are affecting, or will affect, the health care industry?
    • Analyze the issue and its financial impact on the health care industry.
    • Provide recommendations for improving the issue. Consider current strategies being used or presented for improving the issue.
      • Include what you believe would be the outcome of these recommendations if implemented.

Cite 3 peer-reviewed, scholarly, or similar references to support your paper.

Format your paper according to APA guidelines.

This is the detail of what to be done.

Note: While you identified issues in the Week Two Finance Environment assignment, you must explore them in more detail and depth in this assignment.

Economic trends in healthcare payment systems High expense and growth for outpatient and those e suffering from chronic diseases Majority of expenditure come from outpatient visit and those that stay admitted in the hospital s. with time there has been an increase in the outpatient in comparison to the inpatient. Presence of consolidation which weakens co petition Describes the change in the ownership structure of healthcare providing organization. private hospitals and group practices have, merged to produce large healthcare systems that provide employment to doctors, have ownership of several hospitals ad offer health insurance services. The consolidation leads to tradeoffs which leads to competition reduction to price increase and reduced need for innovation Reform in payment is shifting incentive form volume to value Health care services work under the fee for service rule. Under this rule that healthcare insurance company pay the health care providers they are responsible. for. this brings s a problem of providers being motivated to deliver survives while considering volumes and neglecting costs. Ethical issues associated with the trends Shifting technological trends that requires the systems put in place to the health facilities to keep up with these regulations that are required High motivation to work with volumes compared to quality which leads to lower quality health services with increased payment. Once the competition is reduced the patients are deemed to feel the pinch of the high expenditures paid. Changing governmental requirements for the healthcare provides a great challenge to both the patients and providers since all the costs that are to be incurred to meet the compliances are pushed on to the customers through the expenses. Reference Hills, A. (2018)” the economics of healthcare system:6 trends entrepreneurs should know” Irene,P. & C. Smith(2013)Health system performance comparison. Retrieved from: file:///C:/Users/Faith%20Leo/Downloads/Health-System-PerformanceComparison.pdf Cashin, Y., Smith,P. &Michael,B.(2014)Paying for Performance in Health Care: Implications for health system performance and accountability. Retrieved from: file:///C:/Users/Faith%20Leo/Down