econ- ct7
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Eco-M7-ptt.pptxThe profit motive in healthcare
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Outlines
This presentation will outline the following:
Profits in healthcare.
Ethical debate related to profit in healthcare.
Profits in healthcare encouraging more.
Providers focus.
Conclusion.
This presentation will outline the following:
Profits in healthcare.
Ethical debate related to profit in healthcare.
Profits in healthcare encouraging more.
Providers focus.
Conclusion.
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Profits in Healthcare
For profits healthcare is well known as the dominant model in the market for health insurance (Andre & Velasquez, 2015).
Profits in healthcare are main drivers of healthcare economy (Barr, 2007).
http://www.mckesson.com/blog/how-health-care-providers-can-improve-their-profit-margins/
For profits healthcare is well known as the dominant model in the market for health insurance (Andre & Velasquez, 2015). The idea of having a good business in healthcare is based on maximizing profits. Profits in healthcare are considered important drivers of healthcare economy (Barr, 2007). However, profits in healthcare requires good management and quality control because high quality healthcare services should be patient centered and value based not cost based. For example, cosmetic surgeries are becoming increasingly popular even among middle and low-income people. Entrepreneurs and specialized businesses once they see an opportunity for profit, they will take it as their primary goal to achieve profits and sometimes over ensuring patient safety (Harris, 2016). This is rising the issues of ethical considerations of profit in healthcare.
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Ethical Debates Related to Profit in Healthcare
Usually, healthcare profits motive is unethical because healthcare aimed for profits motive can undermine the value of patient health
Healthcare cost considerations are ethically permitted but healthcare profits motive is not (Sobieski, 2016).
Usually, healthcare profits motive is immoral because medical care aimed for profit motive can undermine the value of patient health (Sobieski, 2016). Medical profit motive is about maximizing profits from patient healthcare as a primary goal in patient care (Sobieski, 2016). Profits motive in healthcare is not the same as healthcare cost considerations which is unethical. If a physician is considering costs of medical procedure to a patient and considering costs to other patients as well as costs to the whole society when making medical decisions in cost effective ways, this can more easily be ethically permitted (Sobieski, 2016). But, it is unethical if a physician go beyond cost considerations to consider profits over patient safety.
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Ethical Debates Related to Profit in Healthcare
“Medicine is not a business.” (Gray, 1991, p.172).
Ethical code of conduct in healthcare is important to every healthcare provider. Ethics of medical profession focuses on providing equitable healthcare services to patients with no discrimination (Gray, 1991). This means providing healthcare services based on patients' needs and values not for personal gains. In healthcare, ethics should not be compromised and violated for effectiveness of healthcare services and profits (Sobieski, 2016). This explains that a healthcare provider will provide quality of healthcare services that is safe for patients. Gray (1991), “medicine is not a business”. (p.172). Upon graduation of medical students, they swear not to harm patients and to operate in the patient’s best medical interest of patients in terms of Hippocratic Oath (Sobieski, 2016). But, harming patients financially by increasing medical profits in which they can’t afford is certainly unethical.
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Ethical Debates Related to Profit in Healthcare
Some ethical issues to consider:
Justice.
Autonomy.
Equity (Jones & McCullough, 2014).
http://www.phmovement.org/en/node/7640
There are some ethical issues that are related to profit in healthcare such as justice in which healthcare is required for all with no discrimination and fair for all medical decision making (Jones & McCullough, 2014). Healthcare services should not vary for any reason even for political and economic possibilities (Jones & McCullough, 2014). Right of justice focuses on protecting patients’ dignity, respect, values and equitable access to healthcare services in an approach of patient centered care (Fix et la., 2018). Right of equity in healthcare is important and can rise ethical issues when distributed unevenly. Distributional inequities of the healthcare might be avoided by healthcare insurance (Brock & Buchanan, 1986). Profits in healthcare might have ethical issues of justice and equity because they are profit driven. In some situations, physicians will make decisions for patients on their behalf for profit purposes without considering their values and preferences in which it violates their right of autonomy.
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Profits in Healthcare Encouraging More
Profits in healthcare influences the way healthcare services are delivered (Luft , 2009).
Profits in healthcare are encouraging healthcare providers to do more especially when it comes to lowering costs to patients (Spiers, 2009).
Economic function of profits in healthcare is allocative not distributive in which it encourages good healthcare providers to do more (Basu, Andrews, Kishore, Panjabi & Stuckler, 2012; Spiers, 2009).
Profits in healthcare influences the way healthcare services are delivered (Luft , 2009). Profits in healthcare are encouraging healthcare providers to do more especially when it comes to lowering costs to patients (Spiers, 2009). Rewarding healthcare providers for patients’ satisfaction, innovations, investments and improving healthcare services encourage them to do more (Spiers, 2009). Economic function of profits in healthcare is allocative not distributive in which it encourages good healthcare providers to do more (Basu, Andrews, Kishore, Panjabi & Stuckler, 2012; Spiers, 2009). Payments based on efficiency, effectiveness and productivity is important, so resources will be allocated as necessary and used effectively.
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Profits in Healthcare Encouraging More
Healthcare providers with a better pay seem to be motivated and satisfied with their job as compared with others.
There is an increase in the number of specialist providers compared to primary physicians due to better pay that is offered in specialization of healthcare services (Shi, 2012).
Healthcare providers with a better pay seem to be motivated and satisfied with their jobs as compared with others (Shi, 2012). There is an increase in the number of specialist providers as compared to primary physicians who are reducing in number. This is attributed to the better pay that is offered in specialization of healthcare services (Shi, 2012). With specialization, there is an increase in the likelihood of improving healthcare quality because the specialist healthcare providers have narrowed down their work to a specific body part or disease. Also, the evolving technology that has created more areas in which healthcare providers can expand their skills and specialize in order to become more productive and do more in the specialities.
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Profits in Healthcare Encouraging More
In other situations, it is a matter of personal principle and the driving force of a health provider to do more than necessary (Ali, Salehnejad & Mansur, 2016).
In other situations, it is a matter of personal principle and the driving force of a health provider to do more (Ali, Salehnejad & Mansur, 2016). Some healthcare providers are comfortable working for charities with no pay and non profit organizations in which it gives them satisfaction to do so. Others work for pay because it is essential and basic need for survival. People have different motivations for their jobs hence employees need to understand their needs before settling for a job (Ali, Salehnejad & Mansur, 2016). Employers should employ staff that demonstrate competency and values for the mission and vision of the institution to avoid conflicts in interests.
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Providers Focus
Various health providers argue differently on the issue of money and quality of services.
Some put emphasis on the need to save lives and assist their patients.
Others argue that with a low pay, one cannot fully concentrate on their work and are discontent (Abduljawad & Al-Assaf, 2011).
Various healthcare providers argue differently on the issue of money and quality of healthcare services (Abduljawad & Al-Assaf, 2011). Some put emphasis on the need to save lives, assist their patients, improve health and prevent diseases. Others argue that with a low pay, one cannot fully concentrate on their work and are discontent because they have basic needs they need to fulfil (Abduljawad & Al-Assaf, 2011). But, healthcare providers are aware of patients’ rights and ethical code of conduct. In healthcare, the main priority is always patient care while other goals come after (Mosadeghrad, 2014). Healthcare providers’ work, achievements and adherence to proper utilization of healthcare resources will support them to be recognized and awarded with incentives and appreciations. The appreciations of healthcare providers will pay off the results of later promotions and more opportunities.
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Providers Focus
Assuming that most providers focus on money would be quite misleading because it first of all goes against their ethics (Mosadeghrad, 2014).
Patient- centered care in healthcare is significant to save money and can then be used for other patients (Fix et la., 2018).
Healthcare providers are working to improve patients’ health and save patients’ lives (Mosadeghrad, 2014). Patient care is the top priority of every healthcare setting. The importance of patients’ health is illustrated in many missions of healthcare settings, agencies and organizations. For example, Institute of Healthcare Improvements (IHI) (2018) has a mission to improve health and enhance healthcare worldwide. So, patient care always comes as top priority and main focus of healthcare providers. It is important to apply patient- centered care in healthcare which is significant to save money and can then be used for other patients (Fix et la., 2018).
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Providers Focus
The Quadruple Aim focuses on:
Improved patient care.
Lower costs.
Better outcomes.
Clinician wellness (Sikka, Morath & Leape, 2015).
https://www.stepsforward.org/modules/joy-in-medicine
The quadruple aim explains the main focus of every healthcare provider (Sikka, Morath & Leape, 2015). It presents four aims in which improvement of patient care is the first one (Sikka, Morath & Leape, 2015). Then, lowering costs, better outcomes and lastly is clinician wellness. So, healthcare providers have aims to achieve in healthcare that include patient care and saving money. But, prioritization of patients’ health is the most important to achieve. Previously, healthcare settings focus on achieving triple aim and didn’t consider clinicians joy and wellness in work to be important. Introducing quadrable aim by giving a meaning to healthcare providers is the comprehensive transformation that is required in healthcare systems to provide value based care (Sikka, Morath & Leape, 2015).
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Conclusion
Healthcare cost considerations are ethically permitted but healthcare profits motive is not because it undermines the value of patient health (Sobieski, 2016).
Profits in healthcare encourage healthcare providers to do more than necessary but they can be motivated by other means such as rewards and incentives for lowering costs (Ali, Salehnejad & Mansur, 2016).
Healthcare providers focus on patient care first and then lowering costs as presented in quadruple aim (Sikka, Morath & Leape, 2015).
Healthcare cost considerations are ethically permitted but healthcare profits motive is not because it undermines the value of patient health (Sobieski, 2016).
Profits in healthcare encourage healthcare providers to do more than necessary but they can be motivated by other means such as rewards and incentives for lowering costs and proper utilization of healthcare resources (Ali, Salehnejad & Mansur, 2016). Motivation of healthcare providers to provide value based care is highly important. Healthcare providers focus on patient care first and then lowering costs as presented in quadruple aim (Sikka, Morath & Leape, 2015). Quadruple aim presents four aims in which improvement of patient care is the first one (Sikka, Morath & Leape, 2015). Then, lowering costs, better outcomes and lastly is clinician wellness.
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References
Abduljawad, A., & Al-Assaf, A. F. (2011). Incentives for better performance in health care. Sultan Qaboos University Medical Journal, 11(2), 201 – 206.
Ali, M., Salehnejad, R., & Mansur, M. (2016). Hospital heterogeneity: what drives the quality of health care. The European Journal of Health Economics, 1-24.
Andre, C. & Velasquez, M. (2015). A healthy bottom line: profits or people? Retrieved from: https://www.scu.edu/ethics/focus-areas/bioethics/resources/a-healthy-bottom-line-profits-or-people/
Barr, D. (2007). The Increasing Role of For-Profit Medical Care. In Introduction to U.S. health policy: the organization, financing and delivery of health care in America (pp. 1 -5). USA: The Johns Hopkins University Press.
Basu, S., Andrews, J., Kishore, S., Panjabi, R., & Stuckler, D. (2012). Comparative Performance of Private and Public Healthcare Systems in Low- and Middle-Income Countries: A Systematic Review. PLoS Medicine, 9(6), e1001244. doi:10.1371/journal.pmed.1001244
Brock, D. W., & Buchanan, A. (1986). Ethical issues in for-profit health care. For-Profit Enterprise in Health Care, 224-249.
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References
Fix, G. M., VanDeusen Lukas, C., Bolton, R. E., Hill, J. N., Mueller, N., LaVela, S. L., & Bokhour, B. G. (2018). Patient-centred care is a way of doing things: How healthcare employees conceptualize patient-centred care. Health Expectations, 21(1), 300–307. https://doi.org/10.1111/hex.12615
Gray, B. H. (1991). The profit motive and patient care: The changing accountability of doctors and hospitals. USA, Harvard University Press.
Harris, P. (2016). Patient safety must be prioritized over profit. Journal of Aesthetic Nursing, 5(3), 110. Retrieved from: doi.org/10.12968/joan.2016.5.3.110
Institute of Healthcare Improvements. Vision, Mission, and Values. Retrieved from: http://www.ihi.org/about/Pages/IHIVisionandValues.aspx
Jones, J. W., & McCullough, L. B. (2014). Ethics of administrative guidance: How much is too much?. Journal of vascular surgery, 59(6), 1737-1738.
Kreimer, S. (2010). Five Ethical Challenges in Healthcare. Retrieved from: https://www.amnhealthcare.com/latest-healthcare-news/five-ethical-challenges-healthcare/
References
Luft, H. S. (2009). Economic incentives to promote innovation in healthcare delivery. Clinical Orthopaedics and Related Research®, 467(10), 2497-2505.
Mosadeghrad, A. M. (2014). Factors Influencing Healthcare Service Quality. International Journal of Health Policy and Management, 3(2), 77-89. doi:10.15171/ijhpm.2014.65
Shi, L. (2012). The impact of primary care: a focused review. Scientifica, 2012, 1-22.
Sikka, R., Morath, J. M., & Leape, L. (2015). The Quadruple Aim: care, health, cost and meaning in work. BMJ Qual Saf, 2015,1–3. doi:10.1136/bmjqs-2015-004160
Sobieski, J. (2016). The moral price of the profit motive in medicine. Honors Theses. 952. Retrieved from: https://scholarship.richmond.edu/honors-theses/952
Spiers, J. (2008). Who Decides who Decides?: Enabling Choice, Equity, Access, Improved Performance, and Patient Guaranteed Care. UK, United Kingdom: Radcliffe Publishing.
