Economics involves providing goods and services regarding production, distribution, and consumption. Additionally, economics in healthcare and medical industry deals with resource allocation and efficient use of the available resources. Since the health and medical industry in the US is undergoing constant revolution so that it meets the economic changes, healthcare organizations need to adjust in medical service delivery, organizational structure, and financing so that they meet patient needs and wants. For efficient and high-quality services in the healthcare sector, the US government employs different economic models, assumptions, and theories. Thus, to understand the concept of economics in health care provision, it is vital to identify the public healthcare economic models, assumptions, and theories that the government uses in order to minimize healthcare costs.
Firstly, the governments ensure that the citizens have adequate information. The economic model dictates that the information the public receives should be free and open. The information provides more insight to the public so that they can make precise decisions regarding their spending (Frieden, 2013). Additionally, the US government has set policies that ensure that concerned players in the healthcare sector disclose the factual information to the public. Moreover, the policies dictate that the entities should pass information that is correct and accurate. Thus, the policies ensure that the public receives the intended information and in case any entity violates either of the policies then the government can intervene. Under the same model, the public can get information about quality products that they may consume and reduce their health costs. In the same line, this implies that possession of the information helps to avoid a product that increases health problems and in the long run the health costs.
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Another model that the US government uses is that helps shield the public from harm at individual and collective levels. Particularly, the government executes this model through ensuring it provides a safe environment. For instance, the government ensures that contaminated beverages and foodstuffs are not sold to the public. Additionally, the US government has put several measures against industries to release toxins and effluents into the environment. The measures are a way the government is indirectly ensuring that the health of the public is not compromised (Frieden, 2013).
Lastly, the government employs the concept of high-risk pooling. That is, the government ensures that insurers cover individuals with medical conditions that are expensive as well as hindering them from accessing low insurance rates. By use of the high-risk pooling, more individuals can afford to acquire the expensive premium by receiving treatment through subsidies from the government. Currently, two concepts; Medicaid and Medicare, which the government is employing, are failing. The two systems don’t offer the best access to medical services. For instance, they don’t cover a large number of people with expensive medical conditions. Additionally, Medicare is a time bomb that is continuously accumulations huge amount of dollars in the form of unfunded liabilities (Kling, 2018).
Therefore, it would be wise if the government considered the use of voucher system that gives individuals the power to choose the facility to receive health care services in contrast to the current Medicaid system that limits the users. Another recommendation is that the government to contribute to data gathering and analysis before disseminating it to the public since private is reluctant to undertake the exercise because it does not return any profit that is, information is free.
References
Frieden, T. (2013). Tom Frieden on Public Health and Safety. Retrieved from https://www.c-span.org/video/?314948-1/tom-frieden-public-health-safety
Kling, A. (2018). Government and Health Care: The Good, The Bad, and the Ugly. Retrieved from https://www.cato.org/publications/commentary/government-health-care-good-bad-ugly
