The Role of Technology in Rising Health Care Costs. What Should or Shouldn’t Be Done.

In: Science

Submitted By aaryas84
Words 5135
Pages 21
The Role of Technology in Rising Health Care Costs. What should or shouldn’t be done.
Neha Para, MPH Student
5453-001 US Health Care System
University of Oklahoma Health Sciences Center
December 8, 2010 Abstract Health care costs are a longstanding concern to policymakers. For years, health care spending has been rising faster than the rate of economic growth, raising the question of what factors are responsible for rising health care costs. This paper explores published articles that report results from research conducted on technological innovations in health care and its relation to rising health care costs. The cost increases have a significant effect on households, businesses, and government programs. Health care experts indicates the development and diffusion of medical technology as primary factors in explaining the persistent difference between health spending and overall economic growth, with some arguing that new medical technology may account for about one-half or more of real long-term spending growth. Rising health care expenditures lead to the question of whether we are getting value for the money we spend. On an average, increases in medical spending as a result of advances in medical care have provided reasonable value. An alternative viewpoint holds that although new technologies represent medical advances, they are prone to overuse and thereby excess cost. Most of the suggestions to slow the growth in new medical technology in the U.S. focus on cost-effectiveness analysis. However, there are other issues that include, whether money would be saved by reducing costly technology where marginal value is low and how to monitor the cost impact and whether a cost containment approach would discourage technological innovation.

The Role of Technology in Rising Health Care Costs.
What should or shouldn’t be done.

For nearly all of the…...

Similar Documents

Rising Prices of Health Care and Its Effects

...2012 Rising Prices of Health Care and Its Effects Medical costs in America are the highest compared to every other country. Many people explain that our costs are higher just because our expensive costs, on going to the doctor more often, or that wet get sicker more. In fact, the opposite is true. The reason that medical costs are higher is because of the prices. Since the prices are higher we as Americans pay more, it’s that simple. When trying to explain the high cost of medical care many people though it was because we use medical services more often as Americans. Research shows that “we spend less time in hospitals than Germans and see doctors less often than Canadians.” (Klein) This is odd, because even though the above is true our medical costs are almost double that of Germany and Canada. We pay more and get less out of medical care. “The United States spends more on health care than any of the other OECD countries spend, without providing more services than the other countries do” (Klein). This just shows that our prices for some reason are just higher than they are in other countries. To understand why this is we must understand why prices in other countries are lower. “In 2009, Americans spent $7,960 per person on health care. Our neighbors in Canada spent $4,808. The Germans spent $4,218. The French, $3,978” (Klein). The reason behind the lower prices in the above countries is because their countries governments negotiate more aggressively with health......

Words: 1300 - Pages: 6

Rising Health Care Cost

...Courtney Sheegog May. 8th, 2013 Hca/210 Rising Health Care Cost Assignment • What are some of the driving forces behind rising health care spending? One of the driving forces behind rising health care spending is Technology and Prescription drugs, chronic disease, aging of the population, Administrative costs. For several years, spending on new medical technology and prescription drugs has been the leading contributor to the increase in overall health spending. (Healthcare reform .Gov. ,2011). Longer life spans, and greater prevalence of chronic illnesses. This has placed tremendous demands on the health care system, particularly an increased need for treatment of ongoing illnesses and long-term care services such as nursing homes; it is estimated that health care costs for chronic disease treatment account for over 75% of national health expenditures (Kaiser Edu.org, 2010). How do HMOs affect health care costs? HMO's often emphasize their ability to contain costs through oversight of physicians' decisions or by implementation of a capped payment scheme that aligns physicians' incentives with those of the healthcare plan. HMO's do have lower hospitalization rates and shorter hospital stays and use fewer expensive tests and procedures than traditional health-care providers. Some people also argue that the increasing use of managed care generates positive externalities that benefit consumers enrolled in non-HMO health plans. This argument typically invokes some notion of......

Words: 316 - Pages: 2

Rising Cost of Health Care

...The Rising Cost of Health Care: Effects on Access to Care The rising cost of health care is a trend that is negatively influencing access to health care. According to our course textbook, Policy and Politics in Nursing and Health Care, over 46 million Americans did not have health coverage in 2008, and 25 million American adults were underinsured (p. 124-125). For most people, this can be attributed to the high cost of premiums, co-pays, and deductibles. The purpose of this paper is to discuss the history of the trend of rising health care costs, the influence rising costs have on the delivery of health care, how rising costs create disparities in health care, and two ways that nurses can address inadequate access to health care. Access Trend In the U.S., there are more people today than ever before, unable to access quality health care. “Access is the ability to obtain needed, affordable, convenient, acceptable, and effective health care in a timely fashion” (Mason, Leavitt, & Chaffee, 2012, p. 124). This lack of access is attributable to the high cost of health care, which makes it unaffordable for the working poor, and those working for small businesses, to pay for adequate health care. There is an inverse relationship between the cost of health care and good patient outcomes. It is estimated that $7,000 per person, including children, is spent on health care in the U.S., yet the country does not rank in the top 15 of industrialized countries in terms of good......

Words: 1289 - Pages: 6

Hca/210 - Wk 7 - Rising Cost of Health Care Costs

...The Driving Forces behind Rising Health Care Costs Leslie Parvin HCA/210 August 23, 2013 Jon Lasell The Driving Forces behind Rising Health Care Costs Even though some experts disagree the high cost of health care is not a serious problem, the high and rising costs are a major issue, because of the high cost of new technologies and the aging population. Furthermore, the most expensive health care system in the world is right here in the United States, with the per capita health expenditures far above those in any other countries. However, to help the sky rocketing costs of health care, insurance companies came out with plans like HMO’s to help manage care organizations that provide comprehensive health care services for a predetermined annual fee per each person enrolled. The rising health care costs have become a huge concern for almost everyone, including the general public, federal and state governments, and employers who purchase health care for their employees. Hence, there are several reasons to explain the high and rising costs of health care. According to Bodenheimer (2005), he stated, “High health care costs might derive from factors outside the health sector rather than from characteristics of the health care system itself” (p. 849). One of these factors outside the health sector is the rising costs of health care for the aging population. According to the Pew Research Center (2010), as of January 1, 2011 approximately 10,000 Baby Boomers,...

Words: 608 - Pages: 3

Health Care Cost

...Zion Rebecca Apphia English 101 Exploratory Essay Feb 28, 2014 Care Cost I know a man that died because he couldn’t afford the standard of care. Why is the cost of health care so high and expensive? It has cost many people to refuse to go for checkup or when sick refused to be seen by a doctor because they can’t afford the bills that will come later. Should the cost of care be reduce or remained where it is? Yes, it should be reduce because so many people are dying from chronic diseases. A freelance cameraman's appendix ruptured and by the time he was admitted to surgery, it was too late. A self-employed mother of two is found dead in bed from undiagnosed heart disease. A 26-year-old aspiring fashion designer collapsed in her bathroom after feeling unusually fatigued for days. What all three of these people have in common is that they experienced symptoms, but didn't seek care because they were uninsured and they worried about the hospital expense, according to their families. All three died. Research released this week in the American Journal of Public Health estimates that 45,000 deaths per year in the United States are associated with the lack of health insurance. If a person is uninsured, "it means you're at mortal risk," said one of the authors, Dr. David Hammerstein, an associate professor of medicine at Harvard Medical School. The researchers examined government health surveys from more than 9,000 people aged 17 to 64, taken from 1986-1994, and then......

Words: 1061 - Pages: 5

Health Care and Technology

...Healthcare and Technology Ryan Carongcong HCS 531 2/4/14 Professor Kehoe Healthcare and Technology Technology has played a vital role in providing improvements and advances within the health care system. Among the many changes associated with health care and technology is the increase of mobile health devices and services. With the rising cost of health care, compounded by an aging population, mobile health is being thrust to the forefront as a potential alternative to providing effective health care services. Mt. Sinai Hospital, in New York, recently adopted and signed a contract for the use of Cureatr. It is the first major organization to adopt such a program (Mt. Sinai Hospital, 2013). It is a cell-phone based application, which places its emphasis on mobile health. According to The Rockefeller Foundation (2014), there are currently over 3.5 billion mobile devices in the world. Interestingly enough, that number is set to double within the next decade, which makes mobile health services a great alternative for health care providers. Integrating the Cureatr application has and will continue to provide many benefits to both patients and providers. These benefits range from improved quality of care, improving cost of care, accessibility, and overall quality of life for patients. Cureatr Overview It is estimated that there are currently 15 million users for mobile health devices. Within the next five years, it is projected that the number of mobile health......

Words: 1523 - Pages: 7

Hca 497 Week 3 Dq 1 the Rising Cost of Health Care

...contains HCA 497 Week 3 Cost Containment and Malpractice Claims Article Review Health Care - General Health Care Cost Containment and Malpractice Claims Article Review. Health care costs have become a major issue of concern in the U.S. and defensive medicine practices have become a topic of increased interest among a variety of stakeholders. For this assignment, please visit the Ashford University Library and read the Hermer and Brody article titled “Defensive medicine, cost containment, and reform.” Identify the ways to contain health care costs as well as the potential to reduce costs associated with malpractice claims. Analyze the following: 1. The major points covered in the article. 2. The pros and cons of Tort Reform and the practice of defensive medicine. 3. The implications of Tort Reform on the practice of defensive medicine, quality of care, and health care costs. 4. The author’s position on Tort Reform. Discuss whether you agree or disagree with the author’s opinion on Tort Reform and support your position. 5. At least three major stakeholders involved in Tort Reform, their roles, and general positions on the issues discussed in your paper. This assignment provides an opportunity to gain understanding of two unique issues, the Tort reform and defensive medicine practices. In addition, you will discover how these two issues may contribute to the rising health care costs as well as the delivery of quality health care services......

Words: 392 - Pages: 2

Rising Health Care

...Training is what we feel is needed for these recruiter’s but after being trained there needs to be some measurable means. Recruiting is a job that depends on if the company is in need to fill jobs, so the measurement needs to be based on attainability. If an employee stays with the company for six months it can be used as a measurement to say that the recruiter gave the manager a good candidate for the job they needed to fill. There is also the measurement of performance, did the training the recruiter received help build their numbers up, did they have more candidates say with the company then they had before? Did they find people for those hard to fill positions or find people in a short period of time to feel jobs that came up quickly and needed to be filled in a short period of time. If this plan of training does not work it may be time to search for new recruiters, people who are using the many tools available to them to find candidates. If the people they are bringing in to the company are leaving in a few weeks then they are most likely not searching out the right fit for the company culture. Since there is no degree in talent acquisition if we can get the recruiter on track right away it increase their credibility and when candidates are called by these recruiters they will know that the job they are applying for is in their realm, and there is no misfortunate miscommunication when the interview comes up. Recruiters need to have the confidence in themselves to......

Words: 335 - Pages: 2

Technology and Health Care

...Technology and Health Care Paula A. Bennett HCS 521 April 21, 2014 Dr. Rachael Kehoe Technology and Health Care Health care is an evolving industry that requires providers and organizations to continuously adapt to new practices. Technology changes the face of health care on a recurring basis. One type of technology that is becoming more prevalent in health care is the use of telemedicine. Telemedicine consultation allows providers to assess patients at the bedside while not being physically present. While it is not a practice that should it replace face-to-face care, utilizing telemedicine is beneficial for urgent consultations in appropriate settings. The primary purpose in telemedicine consultation is expert assessment and assistance with care decisions. A successful telemedicine program is part of a health care network, rather than a stand-alone system (LeRouge & Garfield, 2013). The purpose of this paper is to describe an innovative approach to health care using current technology and discuss its impact on an organization and the quality of care. Phone Doctor RX Phone Doctor RX, (PDRX), founded by Dr. Paul Bulat in 1999, offers state-of-the-art health care technology through implementation of telemedicine services (Phone DoctoRX: An Innovative Telemedicine Company, 2011). The purpose of the organization is to provide medical consultation services using the technology of video conferencing, like that used in business meetings. In 2005, Dr. Bulat’s......

Words: 1292 - Pages: 6

Technology and Health Care

...Technology and Health Care HCS/531 February 16, 2015 Duane Bibbie Technology and Health Care Technology is an aspect that is important to each organization and entity. Technology helps and assists companies to provide better healthcare for their patients and their establishment. Technology has had such a revolution that it has transformed health care systems from the bottom up. The growth of technology has sprouted so quickly and it has had a tremendous impact on the whole health care system. It has made a huge impact on various aspects of health care such as the patient experience, the quality of care, and access to health care. One of the greatest things that technology has done within the health care industry is simply simplify it to where patients as well as medical facilities can operate in an easier fashion in order to deliver best service. Many entities have taken and embraced the concept of technology in their workplaces, but there are other entities that still need to step up in that aspect. Throughout this paper, software development will be discussed for home health nursing such as Bayada Nurses. Home health nursing is a phenomenal concept, which allows nurses to go out to the homes of their patients and provide them with skilled nursing. The patients are individuals who still need the skilled nursing aspect, but they no longer need to be in a hospital facility or in any medical facility ("Mobile Health Technologies", 2013). This concept of m-health......

Words: 1288 - Pages: 6

Obesity and Health Care Costs

...Disease Control and Prevention, one in every American adult is now considered obese. Obese is defined as having a body mass index (BMI) of 30 or higher. Obesity can contribute to diabetes, heart disease, stroke or certain kinds of cancer. What effect does obesity have in the workplace and how can we fight it? What is the Correlation between Obesity and Health Care Costs The CDC and the National Institute of Health (NIH) indicate that obesity contributes to heart disease, stroke, diabetes, and some types of cancer, all of which are leading causes of preventable death. In 2008, medical costs associated with obesity were over $147 million. 6 to 10% of U.S. health care spending is contributed to obesity. The health costs are 30% higher than normal weight persons. Is Obesity a Protected Class When the Americans with Disabilities Act was first passed, the EEOC viewed severe or morbid obesity as impairment under the Act, but not general obesity itself. But, this has changed under the Americans with Disabilities Act Amendments Act. In 2013, the American Medical Association classified obesity as a medical disease. While this classification does not affect the ADA, it could be perceived that obesity is a protected class. How should obesity be addressed in the workplace? Michigan is the only state that has laws prohibiting an employer from discriminating against an employee due to weight. The state’s civil rights laws, which were passed in 1976, includes a......

Words: 678 - Pages: 3

Health Care Cost

...Members FROM: DATE: SUBJECT: Rising Health Care Cost Health care in America is in crisis. Health care costs are skyrocketing. This problem is not new, nor is the recognition of it. The size, complexity, and political clout of the health care industry political distrust, particularly among people who are currently well insured and geographic diversity in spending, coverage, and delivery systems have frustrated past reforms. Furthermore, health reform means income redistribution among payers and across service providers. Health insurance premiums have doubled in the last 8 years, rising 3.7 times faster than wages in the past 8 years, and increasing co pays and deductibles threaten access to care.i_ The medical expenditure rate is now increasing more rapidly than ever, and control of medical costs has reemerged as a major national imperative. Failure to solve this problem has resulted in most of the other critical defects in the health care system. Least investment in primary prevention and public health: America faces epidemics of obesity and chronic diseases as well as new threats like bioterrorism. Yet despite all of this less than 4 cents of every health care dollar is spent on prevention and public health._iii Many Americans are uninsured because of rising insurance costs: Over 45 million Americans lack health insurance.iv_ Even those with health insurance are struggling to cope with soaring medical costs. Increased healthcare costs are making it difficult for......

Words: 347 - Pages: 2

Health Care Technology

...your community’s access to health care technology and determine how that access (or lack thereof) impacts your community economically. The use of modern technology in the healthcare field is seen to have grown rapidly over the years. Many hospitals and health care providers are embracing new innovations of technology in healthcare. Technologies in healthcare have provided clinical benefits such as prolonged life and improvement in the quality of life. There is an increased access to health care technology in my community today than it had been in previous years and this also has led to increased health care utilization, making it difficult for people to make choices on healthcare or other priorities such as subsistence like food, shelter and others to choose from. Technology is expanding every day and healthcare systems are utilizing new services which will make health care cost continue to be on the rise. An example of technology used in the healthcare field today is the Magnetic Resonance Imaging machine also called the MRI. This is a very important medical procedure that physicians have adopted and allows them get in depths look at what is happening in a patient’s body. This helps healthcare providers find the source of an illness or pain and also helps in determining a plan of treatment for such patient. The average cost of the MRI procedure is $3,500 depending upon which MRI procedure is performed. With the increasing cost of technology, people who can afford......

Words: 1571 - Pages: 7

Reducing Health Care Cost

...CONTROLLING HEALTH CARE COSTS WHILE PROMOTING THE BEST POSSIBLE HEALTH OUTCOMES American College of Physicians A White Paper 2009 Controlling Health Care Costs While Promoting the Best Possible Health Outcomes Summary of Position Paper Approved by the ACP Board of Regents, September 2009 What are the Major Drivers of Health Care Costs? Major drivers of health care costs include: inappropriate utilization especially of advanced medical technology, lack of patient involvement in decision-making, payment system distortions that encourage over-use, high prices for health care services, a health care workforce that is not aligned with national needs, excessive administrative costs, medical liability and defensive medicine, more Americans with declining health status and chronic disease, and demographic changes including an increase in elderly persons. This paper addresses each of these drivers of health care costs and provides recommendations for controlling them. Why Do We Need to Control Health Care Costs? Improvements in health care have the ability to provide opportunities for all people to live better, healthier lives. However, the rate of increase in U.S. spending on health care continues to exceed economic growth at an unsustainable pace. The rate of growth in health care spending is the single most important factor undermining the nation’s long-term fiscal condition. Why Should Controlling Health Care Costs be Linked to Promoting Good Health Outcomes? Increasing......

Words: 26901 - Pages: 108

What the Roles and Functions Are as a Health Care Manager

...What the Roles and Functions are as a health care Manager By Sophia Ward HCS/325 University of Phoenix Nicole Stagalas March 23, 2012 Managers have many important roles and functions to perform on a daily basis in the health care field. There is always going to be a need for health care managers, as the health care system continues to evolves. Every manager’s main duty is to succeed in helping the organization achieve high performance while using most of the organization’s human and material resources (Lombardi and Schermerhorn, 2007). Managers in the health care field must strive to improve daily operations and make future planning on ways to improve efficiency and productivity. On a daily basis, health care managers must recognize performance problems and opportunities, make good decisions, and take appropriate action. (Lombardi and Schermerhorn (2007))  This is obtained by using the process of management, planning, organizing, controlling the use of resources, and leading to accomplish performance goals.      Health care manager will be informing their team members about what will be expected of them on a day–to-day basis. Health care managers must also recruit, train, and develop team members (Lombardi & Schermerhorn, 2007). Some other responsibilities that managers have are coordinating with other teams, plan meetings, figure out the work schedules, and clarify goals and tasks.   The most important responsibility of a health care...

Words: 781 - Pages: 4