The Affordable Care Act (ACA)
Terms Comparison Paper
Within the world of health care economics, the United States “for-profit” health care system, strife with inflated costs and barriers to access, is in a process of reform. Rising insurance premiums, capitation, and market competition that discourage the consumption of unnecessary services currently reward providers for their focus on acute, episodic treatments, rather than encouraging improved health outcomes or disease prevention. The supplier-induced market has forced medical providers to base treatment recommendations on economic necessity. Complex billing and insurance operations have caused administrative costs to skyrocket. The Affordable Care Act (ACA) aims to correct these inefficiencies by reducing personal …show more content…
As the United States’ health care system evolves from an institution dependent on the acquisition of revenues from hospital admissions and procedures to one focused on managing health and wellness, the careful utilization and deployment of capital resources is critical to economic growth. Computer programs are a beneficial capital resource that supports the practice of medicine, such as computerized order entry or clinical decision support systems. For example, a computerized order entry system reduces the duplication of diagnostic testing while clinical decision support systems help providers manage chronic conditions. Industry experts agree the adoption of health care information technology (HIT) is necessary for improving quality and efficiency, although, as of 2006, only 12% of physicians and 11% of hospitals invested in technological improvements to their capital resources (Congress, …show more content…
As purchasers, patients have little ability to evaluate the quality of services received or negotiate fair prices. The ACA serves as an advocate, shifting the focus of the health care system from personal health to community health. As part of this initiative, providers receive financial rewards for investing in technological improvements, such as EHR adoption. Through the development of a national HIT infrastructure, capital resource investments enable data capture and sharing. When combined with Meaningful Use incentives, providers receive encouragement to create real-time monitoring solutions to improve health and reduce costs. Together, the ACA offers a path where primary care providers have the means to develop a stronger health care system that provides expanded access, improved quality, and increased
Within the world of health care economics, the United States “for-profit” health care system, strife with inflated costs and barriers to access, is in a process of reform. Rising insurance premiums, capitation, and market competition that discourage the consumption of unnecessary services currently reward providers for their focus on acute, episodic treatments, rather than encouraging improved health outcomes or disease prevention. The supplier-induced market has forced medical providers to base treatment recommendations on economic necessity. Complex billing and insurance operations have caused administrative costs to skyrocket. The Affordable Care Act (ACA) aims to correct these inefficiencies by reducing personal …show more content…
As the United States’ health care system evolves from an institution dependent on the acquisition of revenues from hospital admissions and procedures to one focused on managing health and wellness, the careful utilization and deployment of capital resources is critical to economic growth. Computer programs are a beneficial capital resource that supports the practice of medicine, such as computerized order entry or clinical decision support systems. For example, a computerized order entry system reduces the duplication of diagnostic testing while clinical decision support systems help providers manage chronic conditions. Industry experts agree the adoption of health care information technology (HIT) is necessary for improving quality and efficiency, although, as of 2006, only 12% of physicians and 11% of hospitals invested in technological improvements to their capital resources (Congress, …show more content…
As purchasers, patients have little ability to evaluate the quality of services received or negotiate fair prices. The ACA serves as an advocate, shifting the focus of the health care system from personal health to community health. As part of this initiative, providers receive financial rewards for investing in technological improvements, such as EHR adoption. Through the development of a national HIT infrastructure, capital resource investments enable data capture and sharing. When combined with Meaningful Use incentives, providers receive encouragement to create real-time monitoring solutions to improve health and reduce costs. Together, the ACA offers a path where primary care providers have the means to develop a stronger health care system that provides expanded access, improved quality, and increased