Health Economy Concerns - Essay Example

? Health Economy Introduction Health economy is a cause of concern since the health expenditure has increased exponentially when compared to the past. The health expenditures depend on the incurring costs and medical expenses. The governmental intervention is also comparatively low and this contributes to the prevailing problems in the health care industry. Unlike other industries which depend on the cost of raw materials and manufacturing machines, health industry depends on the recent development and advancement in the medical field that happen consistently. Economic evaluation becomes a matter of concern and it requires implementation of certain strategies that could help the people to reap benefits out of this mounting expenditure. In today’s world, the expenses of an ordinary man have drastically increased. The day to day expenses have also gone through various changes when compared to the past. People find it difficult to cope up with the increasing cost and this in turn affects their lifestyle. Health intervention is also more due to the increase in the number of unhealthy foods and people have lost interest in keeping up with the practice of maintaining a healthy lifestyle. All these have contributed to the existing problems in the health industry. Economic evaluation is considered and implemented in almost all types of industries. When considering the health care industry, the economic evaluation becomes mandatory since the medical expenses increase at a faster rate. In most of the companies, though various options like medical reimbursements are available, the entire medical expenses are not taken care of. (Chernew & Fendrick, 2009). This poses a great difficulty to the patients and they find it hard to pay back their medical expenses. In certain cases, the health expenditure is more than a person’s monthly income. In this situation, people struggle to meet their own medical expenses. Even countries like America and U.K have implemented various medical programs to assist people in managing their medical bills and expenses. But mere implementation of strategies will not improve the current situation. Instead the government must incorporate certain principles to reduce the mounting expenses and to maintain the health economy at a better rate. (Fagnani, 1999). Principles Health economy plays an integral part in a country’s economy. The recent economic downturn has resulted in serious issues and one among them is the poor management of health economy. As the economic status of common people has gone through a tough phase, the government must help them in managing their medical expenses. This can be achieved by incorporating certain unique principles that would minimize their expenses. Insurance is one among the popular approaches that has been in use for many years. The main aim of insurance is to help the patients during surgeries or unexpected health problems. (Gruber, 2006). The insurance companies collect a minimum amount form the patients who enroll in their companies. This minimum premium amount is returned back to the investors during times of crisis. In this method, the investors are benefited since they receive the required amount of money when they are in need. This helps in the improvement of health economy. Health financing agencies and organizations must be made compulsory in all the countries. This will ensure that the patients experience the entire benefit of the insurance scheme. (Kephart, 2007). Though this seems to be an efficient task, the amount of compensation is comparatively less. This leads to a situation where people do not get to experience the full benefits of the insurance policies. Most of the insurance policies include certain constraints that specify various restrictions. As these pre- conditions are not specified well in advance, it creates problem during the time of reimbursement. People find it difficult to manage with the amount provided by the insurance companies. Another option is to include discounting options in the medical bills. (Health Care, 2010). This must be made compulsory in all the hospitals and medical centers. This discounting option will enable people to pay a less amount when compared to their original bill. The percentage of discount must be decided based on the amount of bill. (Ku, 2003). This can also be done by fixing the range of amount and their corresponding discount rates. This discount amount will be deducted from their final bills and the patients will have an option to pay the remaining amount. By incorporating this principle people will get benefited as only a reasonable amount will be deducted as discount from each and every patient’s bill. As the rate of discount is prefixed, the possibility of controversy and problems are reduced. This can be accomplished only by including the help of the government in these operations. (Thomson, 2005). This will ensure that it does not lead to problems in the future. Governmental intervention is equally important as it would reduce the maintenance costs of the hospitals too. This in turn will result in the decrease of cost of surgeries and medicines. It could prove to be a success as the patients are bound to get satisfied on the concept of discounts. Application of Evaluation Methods The economic evaluation proves out to be successful only if they are applied at the proper place and situation. These cost evaluation methods must be incorporated at a regular basis to have a control over the mounting medical expenses. The main methods like including discount schemes, insurance schemes and other cost evaluation methods must be included to minimize the medical bills during the hospitalization. Certain schemes provide services even after the period of hospitalization; this ensures that the person can avail the entire range of benefits pertaining to a particular scheme. These methods must be applied much before the treatment begins. This ensures that the complete treatment cost is reimbursed. If the patient fails to include this at the time of hospitalization, the benefit might be lesser when compared to the initial stages. Economic evaluation methods must be applied well in advance to avoid last minute confusions that may create a problem during the reimbursement. The same applies to the insurance scheme also. The person must inform the insurance company before he gets admitted in the hospital. By doing this he can be sure of getting his medical bills paid at the right time. The person need not spend any extra money out of his pocket. Cost and Outcomes The cost of each surgery and medicine purely depends on the severity of the particular disease. To ascertain these medical costs, an economic evaluation method is necessary. This evaluation method will help people to have an idea about their medical bills and expenses. This method also evaluates the cost of each surgery and medicine that is used in treating a patient. Though various payment systems are used in the hospitals, evaluation system is considered to be the most effective. (McCellan, 1997). The proposed evaluation method uses several concepts that enable the officials and the patients to have complete control over their medical expense. This also analyzes the medical expense incurred for a particular treatment. This enables the patient to be sure of the cost of each and every treatment. As the cost is known well in advance, the problem of huge medical bills are eradicated. Since the patients have an idea about the total cost of their treatment, they can easily pay back the money without much hassle. This will result in customer satisfaction as they are aware of what they pay. (Murray, 2007). Apart from this, the potential requirement of discount is more when compared to the other facilities. People are used to discounts and they prefer to get certain amount as discount from their medical bills. (Telyukov, 2001). A clear analysis will help the hospital management and the concerned government to have a control over the health economy. This in turn will help them to maintain a stable facilitation that helps people. Conclusion Health economy is one that requires more attention when compared to the other ones in a country. Health intervention principles and policies lend a helping hand to the patients as well as the government in dealing with the increasing medical bills. The cost of implementing an evaluation method or a system depends on the hospital management and the concerned government. Even if the cost of implementing an evaluation system is more, the government must provide the necessary funds to implement them. This will certainly improve the existing situation and will help the patients at times of crisis. Reference Chernew, M & Fendrick, M., 2009. Value Based Insurance Design Insuring Health Care Cost Debate. Available at: http://www.soa.org/library/essays/health-essay-2009-chernew.pdf [Accessed 23 January 2011]. Fagnani, L., 1999. The Dependence of Safety Net Hospitals and Health Systems on the Medicare and Medicaid Disproportionate Share Hospital, [Online] Available at: http://www.commonwealthfund.org/~/media/Files/Publications/Fund%20Report/1999/Oct/351%20pdf.pdf [Accessed 23 January 2011]. Gruber, J., 2006. The Role of Consumer of Co-Payments for Health Care. Family Foundation, [Online]. 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