Nakedecon3

Nakedecon3 - DP 5-6 Many people are concerned about rising...

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DP 5-6 Many people are concerned about rising health care costs. In reaction to this, some individuals and companies are gravitating toward the assumed lower prices of Health Maintenance Organization (HMO) health plans. HMOs spend billions of dollars each year advertising their low cost services. While these savings look good on paper, there are many pages of small print. The explanation after the asterisk indicates that not only do the HMOs lack lower costs, but they also short-change the patient in quality care. Much of the money spent on premiums goes directly into the pockets of stockholders and less is then available for patient care. In addition, the main clinical decisions are made not by doctors, but by a board of directors more interested in the bottom line. Part of the monies generated by HMOs is used to pay stockholder dividends; the demands of the investors must be met. Because of this, the corporation rather than the physician becomes the patient care decision maker. In other words, the medical decision
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This note was uploaded on 03/02/2010 for the course ECON 110 taught by Professor Vernon during the Summer '07 term at BYU.

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Nakedecon3 - DP 5-6 Many people are concerned about rising...

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