| Trends of the HealthCare Payment System | Associated Ethics and Compliance Issues |
| Shared savings |
This concept creates a cash flow problem. It lets physicians to be reimbursed for the revenue they lose through a program that involves shared savings. The cash flow problem comes in as payments usually take long to be made, typically a year after the losses have occurred (Miller, 2009). The model of shared savings seemingly favors some hospitals and looks down on others. Hospitals that do not employ physicians do not benefit from the model (Benson, Weech-Maldonado & Gamm, 2003). Shared savings may hurt the ability of providers to control costs or improve quality of service since new drugs and hospital devices are being developed rapidly. |
| Global budget | Health providers tend to get losses in situations where the total costs exceed the allocated costs (Mechanic and Altman, 2009). This means that the concept of global budgeting tends to limit the quality of healthcare services provided. The generalization that is associated with the concept also makes the providers lack incentives to offer quality services. |
| Fee-for-Service | This trend makes healthcare providers and organizations to sluggishly carry out research associated with preventive care. It also undermines the need to impellent preventive care strategies that may help prevent hospitalization and thereby lowering the costs that come with being hospitalized. |
References
Mechanic, R. E., & Altman, S. H. (2009). Payment Reform Options: Episode Payment Is A Good Place To Start: Before provider payments are reduced, our payment system must be reformed to encourage the more efficient delivery of care. Health Affairs , 28 (Suppl2), w262-w271.
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Miller, H. D. (2009). From volume to value: better ways to pay for health care. Health Affairs , 28 (5), 1418-1428.
Weech-Maldonado, R., Benson, K. J., & Gamm, L. D. (2003). Evaluating the effectiveness of community health partnerships: A stakeholder accountability approach. Journal of Health and Human Services Administration , 58-92.
