Macroeconomics Healthcare - 1553 Words

Macroeconomics of Healthcare Douglas A. Propp, MD, MS, FACEP, CPE Chair, Department of Emergency Medicine Advocate-Lutheran General Hospital Clinical Associate Professor of Emergency Medicine University of Chicago As Emergency Physicians, we are frequently peripherally exposed to healthcare economic statistics, policies, and debates with little concern for mastering these concepts, feeling that they have little to do with our practice of Emergency Medicine. Although a working knowledge of microeconomics will not aid in arriving at the diagnosis for the elderly patient with mental status changes who we are evaluation at 3 A.M., an understanding of these principles will enhance our roles in positively contributing to the healthcare†¦show more content†¦Whereas indemnity insurance was formerly the prevalent means to fund healthcare expenses in this country, the increasing impact of co-payments and deductibles assumed by the consumer has limited resource demand. In addition, capitation which provides an upfront fixed payment to the provider, allowing them to manage the financial risk associated with subsequent expenditures for their patients gained popularity over the past decade. Many ha ve questioned whether the behavior required of the provider in order to balance the revenues and expenses inherent in a capitation arrangement could be appropriately managed within the context of the overriding patient-physician relationship and might even violate the ethical principle of patient beneficence. One should be able to see that different provider (physician or hospital) behavior can be incentivized based on the payment methodology utilized. For example, if a hospital was paid a fixed amount of money for a hospitalization (e.g., DRG), it would be incentivized to limit both the length of stay and intensity of services for the patient. On the other hand, if the payment methodology was fee for service, the institution might attempt to increase both the length of stay and intensity of services. A per diem arrangement where the hospital receives a fixed daily payment would incentivize a longer lengthShow MoreRelatedJohn Maynard Keynes : The Father Of Macroeconomics1502 Words   |  7 PagesAbstract John Maynard Keynes, also known as the ‘Father of Macroeconomics’, is a twentieth century economist, whose impact on economic theories has proven substantial contribution to reconstructing of economical values. He had influential individuals who helped intrigue and develop his interests in economic. Keynes interests were beyond economics; he took active stance on proposing post-war monetary funds, important for Germany’s reparation and reconstruction funds after World War II. 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