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HSM 410 Week 3 Discussion Question 2 – Reimbursement Cost Controls | Already GRADED A $10.99   Add to cart

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HSM 410 Week 3 Discussion Question 2 – Reimbursement Cost Controls Price controls It will be unlikely for price controls to work in the healthcare since they attack the runaway cost symptoms and not the cause. Today, medical costs are soaring since consumers are greatly insulated by the illusion ...

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Running head: PRICE AND QUALITY CONTROLS 1

HSM 410 Week 3 Discussion Question 2 – Reimbursement Cost Controls

Price controls


It will be unlikely for price controls to work in the healthcare since they attack the runaway cost

symptoms and not the cause. Today, medical costs are soaring since consumers are greatly

insulated by the illusion that their health insurance cover is paid by their employers. In addition,

the tax system is likely to discourage the consumers from striving to get proper value for their

money in healthcare (Hansen et al., 2009). Such a situation therefore calls for price controls on

out-of-pocket medical costs such as insurance premiums and outpatient pharmaceuticals, while

rapidly rising medical costs is not noticed by Americans not paying for them directly (Hansen et

al., 2009). Not only do price controls fail to work, but they also produce severe side effects,

which would not be acceptable by majority of Americans. A Price control is likely to result into

shortage of goods and services, which in turn leads to waiting lists for limited supply. Price

controls benefit richer and well-connected consumers at the expense of other consumers (Hansen

et al., 2009). In addition, price controls encourage bribery and black markets. For example, in

Japan, patients who seek better quality and quicker care will most likely pay bribes of between

$1, 000 and $3, 000 in order to get treatment from senior specialists.


Quality controls


These are sets of procedures that are designed to ensure that performed services adhere to a set

quality criteria or that the services offered meets the requirements of a customer or client. In

order to implement an effective quality control program, an organization must decide on the

specific standards that the service or product must meet (Webber & Wallace, 2011). The extent of

actions of quality controls must be established. For example, the percentage of the units that

needs to be tested from each lot, after which a real world data is collected.



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