Cost Containment In Health Care

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Cost Containment In today’s society, healthcare still remains a topic of discussion in terms of importance. Majority of Americans have chosen between managed care health plans and traditional health insurance plans to carry out their insurance n0eeds. In addition, there are a few routes the individual or their families may consider when choosing a health care provider as well. Once the primary care provider is selected, both sides of costs are under examination. To stay within reason in terms of spending, there have been many cost containment options tested by the government previously. In most medical facilities, they regulate the costs and quality of care, which can be beneficial. On the opposing end, it may raise an eyebrow and indefinitely …show more content…
Cost containment mainly focuses on maintaining expense levels, and reducing other expenses to improve profitability without long term damage to that particular facility. I decided to highlight three cost containment strategies that have some similar advantages and also disadvantages to some medical facilities.
Cost Containment - Advantages and Disadvantages In 1975, the National Health Planning Resources Development act was one of many cost containment strategies put into place in later years. This particular act stated that the patients need for healthcare could be determined by planning experts. It also states that if extra capacity could be eliminated, that doctors could provide services to those patients in need and eliminating excess services to control costs. In today’s healthcare system, we must take a more modernized approach because time constantly changes. There are many different resources that the
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A very appropriate example for this paper is the health care expenditures in Massachusetts, which includes its projected future trends according to the study this assuming no cost-containment intervention. This study provide by Massachusetts Division of Health Care Finance and Policy (2009) used national trends as a benchmark for comparison. This study Massachusetts Division of Health Care Finance and Policy (2009) revealed three relevant points that support this paper. (1)Beginning in 2002, health care expenditures in Massachusetts (both actual and projected) grew more rapidly than other economic indicators such as wages, consumer prices, and per capita GDP. (2) By 2020, health care expenditures per capita in Massachusetts are expected to be 4.5 times what they were in 1991, while the CPI is projected to be just more than double. – Health care in Massachusetts is projected to cost $3,000 more per person by 2018 compared to the U.S. average. During 2004- 2018, compared to the national average, Massachusetts is projected to have a higher annual growth rate in per capita health care expenditures, reaching about $16,000 per person in 2018. U.S. health care spending is projected to reach about $13,000 per person by