The major criticismsof profit-oriented hospitals.
Explanation of Solution
With an increasing competition in the field of medical care services during 1980’s, a quality enhancement was much needed over cost efficiencies.This has been instrumental in creating an intense race among service providers of medical care.
However, the continued competition posted a need for quality enhancement as well as cost efficiencies during the 1990’s. The changes in the medical care landscape that had begun in the previous decadehave made hospitals focus more on maintain competitiveness while earning a profit.
There are a number of criticisms channeled towards hospitals that operate with an intention of earning profits. The corporate mindset of hospitals emphasizing on profit earnings have led them to leverage themselves with debt.
In other words, in leveling up the scale of operations, hospitals have sought after the assistance of debt. The creation of multiple hospital chains is also being criticized in this relation.
Also, if the hospitals are focused on earning profits, then responsibilities will be evaded and patients’ care will be neglected. It will lead to over-exploitation of patients who are in dire need of treatment.
A patient coming in for a simple treatment of a disease might be admitted for several days in ICU to earn profits. This is the reason hospitals should not put earning profits as their top agenda.
Further, hospital administrators earning exorbitant salaries are being heavily criticized. This posts a question as to whether the medical industry will unnecessarily focus on earning profits and serving individual interests of officials involved.
It is rather preferred to focus on technological enhancements that shall provide the patients with better treatment and care.
Want to see more full solutions like this?
Chapter 10 Solutions
EBK HEALTH ECONOMICS AND POLICY
- What is the relationship between hospital consolidation and prices? Why? What about between hospital consolidation and quality or productivity? Why?arrow_forwardWhat effects would joining a MCO have on your clinic regarding staffing, patient volume, and financial stability?What policies and procedures should be used by the MCOs to reduce costs for their clientele?arrow_forwardHealth Economics- whether the profit motive in hospitals generate a negative impact on the quality and access of care for the poor and uninsured. That is, is there significance in the quality and access between for-profit and not-for-profit hospitals?arrow_forward
- Do you think that the privatization of the Medical Center would improve or worsen the efficiency of the management of its hospitals?arrow_forwardGive typing answer with explanation and conclusion What are disadvantages for perfect competition in health care for providers?arrow_forwardIs there a significant difference in quality and access between for-profit and not-for-profit hospitals? Give an example of each type of hospital and briefly explain the differences (community-owned, physician-owned facilities, teaching hospitals)arrow_forward
- what would be the advantages and disadvantages of privatizing medical centers?arrow_forwardAccording to Gaynor, Laudicella, and Propper (2011), In the U.K., most hospitals are owned by the government, rather than privately held. In a setting where most hospitals are not owned by the government (such as in the U.S.), what effect do you predict that hospital mergers would have on the price of hospital care? Presumably, hospital mergers would lead to reduced competition and higher prices for any given type of care.arrow_forwardHow does its structure, conduct, and performance of the pharmaceutical industry impact patients?arrow_forward