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The U.S. health care economy: from guild to market in ten years.

The U.S. health care economy is changing with remarkable speed from the non-competitive guild system of the past 50 years to a competitive market stem. A more efficient industry, more responsive to consumer preferences, is emerging. National health care expenditures grew from 5.3 percent of GNP in 1950 to 10.7 percent in 1983. Three factors that were especially important contributors to this are now being changed. The first is the fee-for-service method of payment of providers. The second is the principle of 'free choice of provider', a medical-economic concept designed to assure that the payor has no bargaining power and that there will be no economic competition among doctors. The third is that most government subsidies were open-ended subsidies of marginal costs. Important changes took place in the early 1980s, and additional changes appear inevitable, that will bring the open-ended era to an end. These changes are setting in motion an accelerating process that seems sure to change the whole system of health care finance from fees for individual items of service reimbursed after the fact, to prospective payments for global units of care, with providers at risk for their use of resources, and from cost-unconscious 'free choice' of provider to cost-conscious choice among limited groups of selected providers contracting in advance. The likely outcome of the process appears to be consolidation of the medical care system into comprehensive health care financing and delivery organizations serving, perhaps, several hundred thousand to several million people each.(ABSTRACT TRUNCATED AT 250 WORDS)

Economic Competition↗

[The health care market: what possible competition?].

The subject of competition in health care exceeds the scientific journals being discussed in almost each public debate on the health care system. In this paper the elements characterising economic competition will be defined in comparison with the particular characteristics of the health care market. The peculiar features of that market require attention to be paid to the equity of the system, to the competitive mechanisms which are not completely evaluated and to the failures of the public bureaucracy still operating. The principal models of competition found in the literature are illustrated and some experiences as UK and Sweden are shown. Some elements of competition are proposed for the Italian National Health Service (INHS) with some rules for the possible implementation.

Delivery of Health Care↗

Reconstitution of the not-for-profit hospital: new ethics, new equity.

In meeting the challenge of economic competition, the not-for-profit hospital has made two significant responses: corporate reorganization and formation of multihospital systems. However, an additional response is needed to improve access to equity capital. This can be achieved by separating the hospital into a not-for-profit entity that contains nursing care, administration, and support services and a series of economic partnerships with members of its medical staff and other investors for provision of ancillary diagnostic and treatment services. Additionally, it is proposed that the parent holding company add an insurance arm, form a primary care network, and vertically integrate all modalities of care.

Ambulatory Care↗

Making health reform work without employer mandates.

Requiring employers to furnish health insurance may be a politically expedient way to expand coverage to the uninsured, but it will surely undermine economic competitiveness and contribute to greater unemployment at a time when the U.S. is struggling to regain its economic strength. In the present environment, a wiser course of action would require that individual households, not employers, become the entity responsible for obtaining health insurance. Under such a scenario, limits would be established on the percentage of after-tax income devoted to health insurance, subsidies would be granted to low-income individuals to purchase insurance, and a basic benefit package would be developed that limits payments to services meeting efficacy and cost-effectiveness criteria.

Financing, Government↗

Brief of the Canadian Society for Clinical Investigation to the science and technology review.

In the context of new realities, perceptions, and concerns, it is fitting that the government has undertaken this Science and Technology Review, questioning not only how much to spend but also the justification and the best ways to carry out federally-funded research. We share the government's concern about the lack of economic competitiveness of our industries and agree that government-sponsored research should make a bigger contribution to the nation's global economic position. The CSCI, which represents the clinical investigators/scientists in this country, is grateful for having been given the opportunity to make this "tour d'horizon" of Canadian clinical research. In this brief, we have attempted to articulate the needs for, and the benefits of, basic biomedical research because it is the only type of research which will provide us with final answers. However, it should be more closely articulated with applied research, as well as with epidemiological, evaluative, and operational approaches which have been neglected. This brief has emphasized that CSCI is committed to PUTTING MORE SCIENCE INTO MEDICINE by encouraging a greater flow of discoveries from the laboratory research bench to the bedside and the community. We made the point that there is a crisis in patient-oriented research and a decrease of young physicians opting for research careers. The Royal College of Physicians and Surgeons of Canada and the MRC are responsive to this situation, which may compromise our capacity to discharge our broader mission. The MRC has given itself valid instruments to foster the creation of wealth through special programs such as the NCE, the University/Industry program, and the MRC-PMAC partnership. Some refining is in order, and close scrutiny of outcome is essential. Both the academic community and industry have their share of responsibility for the less-than-optimal transfer of knowledge to the market place. Lack of venture capital is also a serious issue. A unified science-industry policy will be helpful, but the government must also act as a broker between academia and industry. There is a growing dependence on the health care industry (drugs, testing devices, equipment) for the funding of clinical research. Current legislation and incentives should be maintained but the CSCI would also like to see the funding of more phase I and phase II studies by the drug industry in Canada. We see favorably the increasing role of provincial governments in biomedical and health research and we pay tribute to disease-related foundations and to CHR.(ABSTRACT TRUNCATED AT 400 WORDS)

Canada↗

Public healthcare--welfare, market share or laissez-faire?--a Sentosa Carlsberg skytower view.

How much the Government should provide for its people in sickness and in health, till death do us part, is open to different interpretation in different societies. One of the great paradoxes is that welfare states with high taxation can be globally competitive, innovative, successful market economies, and still provide quality universal healthcare. The Nordic countries, classical welfare states, have achieved top global ranking in economic competitiveness. Denmark's people are the most satisfied with their healthcare in the world, and the world's fourth most responsive healthcare system. This paper examines some of the factors that have made Denmark a successful, open and civil society that provides free-access healthcare to all of its people.

Culture↗

Is competition bad?

Explore the source record for details and available documents.

Economic Competition↗

Optimization of vaccine production for animal health.

Vaccines on the basis of mammalian cell cultures are of major importance for human and animal health. Therefore efforts are undertaken for the improved production of more effective vaccines. Of course, the main purpose of all these approaches is to save lives and improve the quality of life for human beings. However, there is also some remarkable effort in the food industry and the associated animal production, especially in the case of some Flaviviridal viruses (BVD), where > 80% of all cattle herds are found to be infected. These viruses can cause tremendous economic losses of calfs and embryos (Ames, 1990). Because of these facts, there is a continuous endeavour for improving the manufacturing of therapeutics or preventing agents such as vaccines for the treatment of cattle. The competitive economic situation and the specific market demands still require effective and high yield production methods, especially in the case of one of the most widespread viral diseases in cattle like BVD (Ames, 1990). We have succeeded in establishing an improved method for the production of BVD on the basis of a continuous fermentation mode, that consist of modifications of the corresponding process and media improvements.

Animals↗

[Gene therapy and hospital strategy].

Gene therapy raises strong interrogations among hospital managers. Actually, hospital environment is disturbed and moving as well in a legislative political and statutory level as in an economical (competition, consumerism, proximity of the establishments) and demographic one (ageing, new pathologies). The fast development of medical technologies amplifies this disturbance. In front of that environment, the hospital has to anticipate the arriving of gene therapy without underestimating the deontological, medical, economical and judicial risks. The decisions of implantation have to be taken in a collective way, and seriously planned and estimated on a medical and economical level. The way to train people and to forecast their careers don't have to be underestimated in consideration of the challenge which is represented by the gene therapy.

Ethics, Medical↗

The economics of inclusion body processing.

Many recombinant proteins are often over-expressed in host cells, such as Escherichia coli, and are found as insoluble and inactive protein aggregates known as inclusion bodies (IBs). Recently, a novel process for IB extraction and solubilisation, based on chemical extraction, has been reported. While this method has the potential to radically intensify traditional IB processing, the process economics of the new technique have yet to be reported. This study focuses on the evaluation of process economics for several IB processing schemes based on chemical extraction and/or traditional techniques. Simulations and economic analysis were conducted at various processing conditions using granulocyte macrophage-colony stimulating factor, expressed as IBs in E. coli, as a model protein. In most cases, IB processing schemes based on chemical extraction having a shorter downstream cascade demonstrated a competitive economic edge over the conventional route, validating the new process as an economically more viable alternative for IB processing.

Bioreactors↗

[The desire to have children (author's transl)].

During the past fourtytwo years the birth statistics of Bavaria show that the percentage of intramarital first children increased from 1/3 to 1/2 of all children born within marriages. The percentage of the marital second born children increased relatively less from 25% in 1935 to around 30% in 1977. During the same time the percentage of third and fourth children decreased from 38,8% to 19,2% by approxiamately 1/2. For some time now close correlation exists between economic competition and achievement stress and social, sexual, and generative behaviour. Not the modern contraceptives are responsible for the random and sensitive characteristics of the desire for children in couples since contraceptives only increase the planning of children but the vagaries of the future expectations in a dubious economic and social system are responsible.

Birth Rate↗

Physician extenders, the law, and the future.

The process of Physician Extender authorization through general delegatory and regulatory-authority model legislation in the various states is examined in this paper. In light of past legislative and professional developments, the likelihood of independent practice patterns emerging among both nurse practitioners and physicians's assistants is assessed. It is concluded that current trends in physician manpower supply and distribution make the establishment of a physician extender group serving in competition with primary care physicians unlikely at this time. Rather, it is more likely that a clearly defined role may be established either in the employer/employee setting or through a position quite distinct from that of the primary care physician. Physician extenders functioning in this more independent role could contract with primary care and other physicians for their services without engendering economic competition for patient services.

Family Practice↗

Economic change and health benefits: structural trends in employer-based health insurance.

Drawing on structural theories of economic outcomes, we investigated how economic change affects the distribution of health benefits, the main source of health insurance for American workers. Through an aggregate level analysis, we show how the effects of industry level characteristics on the level of health benefits change between 1988 and 1997. Due to the increased reliance on women, nonwhite workers, and part-time labor, we expect declines in the effect sizes of gender and race composition and proportion full-time. In contrast, we predict increases in the effects of proportion small firm employment, proportion union, and industry sector due to rising health care costs, the competitive economic environment, and greater union effectiveness. We analyze data from the March Current Population Surveys for 1987 to 1997 using generalized least-squares regression. The positive effect of proportion white increases over time, while the positive effect of level of full-time work declines. The negative effects of small firm employment and being a retail or nonprofessional service industry increase in magnitude. Both union activity and gender composition have stable effects over the period. The results challenge views of a declining significance of race and gender in the labor market.

Adult↗

The economic impact of breastfeeding.

Although breastfeeding is well accepted as the optimal method of infant feeding, the US failed to reach the goals set for the year 2000. Support from employers, health insurers, health providers, and society are required to reach the goals set forth in Healthy People 2010-75% of mothers initiate breastfeeding, 50% of infants still receive breast milk at 6 months, and 25% of infants are still breastfed at 1 year of age. In today's era of cost accountability and economic competition, these groups likely will desire information regarding the financial effects of breastfeeding and breastfeeding promotion from their perspectives. Although much research still is needed in this area, evidence suggests that a significant return on investment is likely with breastfeeding promotion. Also, the finances of health care must be viewed within the concept of value. In health care, value can be thought of as the cost required to achieve a specified outcome. In lay terms, this can be thought of as "how much bang we get for our buck." Breastfeeding clearly improves the health of infants and mothers and seems to result in cost savings for parents, insurers, employers, and society, which means that the medical and economic value of breastfeeding is high. To reap the health and economic benefits associated with breastfeeding, society must support breastfeeding promotion, which most likely will necessitate a coordinated US breastfeeding program. The US government is in a unique position to accomplish this goal as it views the associated costs from the joint perspectives of employer, health insurer, medical provider, and society. Through support of such a program, the US government likely will benefit significantly by improving the health of children and its financial bottom line.

Breast Feeding↗