Health Services Marketing 1-3 Discussions
chynadll23
chapter2slides.pptChapter 2
Defining the Health Care System and Its Trade-offs
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LEARNING OBJECTIVES
What framework can be used to understand the health care system regarding who pays, how much is paid, and where and to whom care is provided?
Who are the main stakeholders in the health care system?
What are the main trade-offs, among cost, quality, and access that health care organizations must face in allocating their resources?
LO1. What framework can be used to understand the health care system regarding who pays, how much is paid, and where and to whom care is provided?
- Health is “the state of complete physical, mental, and social well-being and not merely the absence of disease or infirmity.”
- US health care system is “an apparently ad hoc arrangement of small units, each with its own goals and incentives, whose purpose is treatment of acute diseased of insured populations.”
- Disconnect exists between definitions of health and health care system.
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Key Words: disease, health, health care system
LO1. What framework can be used to understand the health care system regarding who pays, how much is paid, and where and to whom care is provided? (cont)
- Anderson’s model - continuum
- Market maximized version - favors private and profit-oriented insurance (United States)
- Market minimized version - eventual state-owned, stated-financed, and state-salaried health care system, paid for by general tax revenues (Cuba)
- Roemer’s model -
- Starts with Anderson’s political spectrum (laisez-faire to socialist)
- Adds economic dimension (affluent to poor)
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Key Words: Anderson’s model, Roemer’s model, market maximized, market minimized
LO1. What framework can be used to understand the health care system regarding who pays, how much is paid, and where and to whom care is provided? (cont)
- Must include more than political and economic factors
- Insert Table 2.1 for discussion
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Key Words: customer, consumer, stakeholders
LO2. Who are the main stakeholders in the health care system?
- Individuals and their advocates - recipients of care and those interested in them
- Public sector - public programs differentiated from one another by who they cover for health care benefits
- Private sector - defined by what they do
- Payers - insurance companies, employers, unions, business associations, charitable organizations
- Providers - physicians, hospitals, nursing homes, pharmacies, independent diagnostic facilities
- Suppliers - guides to explore theme and variation
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Key Words: individuals and their advocates, public sector, strategy, payers, providers, suppliers
LO2. Who are the main stakeholders in the health care system? (cont)
- Strategy
- Handling major issues
- Setting organizational direction
- Provided framework for short-term decisions
- Trade-off analysis=strategic choices
- Cost
- Quality
- Access
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Key Words: strategy, cost, quality, access
LO3. What are the main trade-offs, among cost, quality, and access that health care organizations must face in allocating their resources?
- Cost is actual payment based on
- Price
- Demand
- Supply
- Volume
- Production costs
- Cost shifting
- Who pays
- Volume
- Efficiency of execution
- Number of units of care to be applied
- Intensity
- Level of service
- Medical technology
- Site of Service
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Key Words: supply, demand, volume, production costs, cost shifting, level of service, technology, site of service
LO3. What are the main trade-offs, among cost, quality, and access that health care organizations must face in allocating their resources? (cont)
- Quality
- Amenities - first impression
- Service - support actual business of delivering care
- Technical - work that most directly affects outcomes
- Access
- Availability
- What is available?
- What is covered?
- When care can be provided?
- Infrastructure
- Sustainability
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Key Words: amenities, service, technical, availability, infrastructure, sustainability
CONCLUSION
- Many domains must be considered in a framework to understand health care systems.
- The main stakeholders in the healthcare system are individuals, the public sector and the private sector.
- Each company must make strategic choices. It cannot focus on cost, quality, AND access.
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