Chapter 12 Flashcards Preview

HMGT 4301 Introduction to Healthcare Management > Chapter 12 > Flashcards

Flashcards in Chapter 12 Deck (10)
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1
Q

Reasons for Cost Escalation

A
Third-party payment 
Imperfect market
Growth of technology 
Increase in elderly population
Medical model of health care delivery
Multipayer system /administrative costs
 Defensive medicine  
Waste and abuse 
Practice variations
2
Q

How does Third-party payment influence the rise in cost

A

contributes to moral hazard and provider-induced demand because it insulates the consumers against the cost of health care.

3
Q

Imperfect market

A

both Q and P remain unchecked (E = Q x P).

4
Q

Growth of technology

A

research and development are costly, and are included in healthcare expenditures. This is one reason why the cost of pharmaceuticals has increased at an alarming rate in the US. Once developed, new technology often creates its own demand.

5
Q

Increase in elderly population

A

Elderly patient consume more healthcare than younger patients.

6
Q

Medical model of health care delivery

A

medical interventions are costlier than prevention and health promotion.

7
Q

Multipayer system /administrative costs

A

in a multipayer system are nearly double of what they would be in a single-payer system.

8
Q

Defensive medicine

A

additional tests and medical services are used merely as a protection against lawsuits.

9
Q

Waste and abuse

A

general waste as well as fraud and abuse of various programs increase costs of health care.

10
Q

Practice variations

A

geographic variations in treatment patterns across the country indicate cost-inefficient over-treatment.