Abstract
The purpose of this paper is to explain the challenges faced by the US hospitals and the US health care providers in providing quality health care along with rising costs. Undoubtedly, we have all read and heard horror stories about the quality of care provided to patients in managed care plans. The use of provider financial incentives such as capitation which puts providers at risk for the total health care costs of a given enrollee does have the potential for promoting under treatment in favor of maximizing a provider’s revenue. However, the empirical data do not support the popularized notion. One of the challenges faced to provide quality health care is the rising health cost which gives birth to all the other problems. The United States spends more on health care than any other industrialized country. Health care expenditure in 2000 was $1.3 trillion and represented 13.2% of the American Gross Domestic Product. In comparison, the second ranked countries, Germany and Switzerland, spent 10.4 to 10.6% of their GDP on health care followed by Canada and France with 9.5% to 9.6%. US health care expenditures are projected to reach $2.8 trillion and represent 17% of the GDP by 2011.
Challenges to provide quality care with rising costs healthcare costs in United States
Undoubtedly, we have all read and heard horror stories about the quality of care provided to patients in managed care plans. The use of provider financial incentives such as capitation which puts providers at risk for the total health care costs of a given enrollee does have the potential for promoting under treatment in favor of maximizing a provider’s revenue. However, the empirical data do not support the popularized notion.
Long and Coughlin found that Medicaid children enrolled in managed care plans did not receive substandard care...............
