MGT214 Unit I Review.docx - ERH-Rachele Harlin-Alexnder...

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ERH-Rachele Harlin-Alexnder March 21, 2018 Professor Tracy Miller Unit I Review 1. What are the two main objectives of a health delivery system? Processes that enable people to receive healthcare and provisions of healthcare services to patients. Also, to deliver health services that are cost effective and meet pre-established standards of quality. 2. What is the primary reason for employers to purchase insurance plans to provide health benefits to their employees? Employees get group rates through the employer that are lower than the rates that an employee would get by purchasing health insurance on their own. Plus, the U.S. does not have a universal health care system covering every citizen. Health insurance is primarily employer-based. 3. What is managed care? Managed care tries to achieve efficiency by integrating the basic functions of healthcare delivery, and it employs mechanisms to control or manage utilization and cost of medical services. It also determines the price at which the services are purchased and how much the providers get paid. 4. What are the 10 characteristics of the U.S. health care system? No central governing agency and little integration and coordination, Technology-driven delivery system focusing on acute care, High in cost, unequal in access, and average in outcome, Delivery of healthcare under imperfect market conditions, Government as a subsidiary to the private sector, Fusion of market justice and social justice, Multiple players and balance of power, Quest for integration and accountability, Access to healthcare services selectively based on insurance coverage, Legal risks influence practice behaviors. 5. Why is the U.S. health care market referred to as “imperfect”? Healthcare is partially governed by free market, the delivery of services is mainly in private hands. The delivery and consumption of healthcare in the United States does not meet the basic test of a free market. 6. Discuss the intermediary role of insurance in the delivery of health care. The role of insurance introduces a third party into the process between the patient and provider. Health insurance
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protects the consumer from the cost of healthcare. Providers can be restricted from delivering services that are not covered.
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