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Introduction to
the US Health
Care System
Dr. Nicole Hatcher
Objectives
 By   the end of the class, you should:
    Understand the basics of the US health care
     system
    Be able to name and describe the four key
     components of the US health care delivery
     system
    Be able to differentiate the U.S. health care
     system and the free market
    Have an overview of health care in other
     industrialized countries
Primary Objectives of a Health
Care System
 To enable all citizens to receive health
  care services
 To deliver services that are most effective
  and meet established standards of quality
Major Players
 Physicians
 Administrators
 Insurancecompanies
 Large employers
 Government
Characteristics of the US
Health Care System
   No central agency
   Access is selective
   Imperfect market activity
   Third party insurers as intermediaries
   Multiple payers
   Balance of power
   Legal risk
   New technology
   Continuum of services
   Quality
Characteristic- #1
 No   central agency
    Citizens are not entitled to receive a
     specific set of services
    Lack of a global budget
Characteristic- #2
 Access   is selective
    Insurance
    Affordability
Characteristic #3
 Imperfect   market
    Quasi-free market
    In national health care, economic markets
     do not exist
Characteristic #4
 Third-party   insurers and payers
     Patient
     Provider
     Intermediary
Characteristic #5
 Multiple   payers
     Billing and collection
     Cumbersome system
Characteristic #6
 Balance   of Power
    Multiple payers
    Fragmented self-interests
Characteristic #7
 Legal   risk
    Litigious society
    Defensive medicine
Characteristic #8
 High   technology
    R&D
Characteristic #9
 Continuum   of services
    Curative
    Restorative
    Preventative
Characteristic #10
 Quality
     Continuous quality improvement
     Higher expectations
The Role of Government
 Major financier
 Determine reimbursement rates
 Regulator of health professionals and
  health care establishments
 Health policy
Basic Components of a Health
Care System: Quad-function
 Financing
 Insurance
 Delivery
 Payment
Access to Care
 What is access?
 Key predictors of access
    Financing and insurance
    Delivery and payment
A Complex Problem
 The   uninsured
  41.6 million in 2004
  16-17% of the total population
 (Nat’l Center for Health Statistics)
Health Care Systems of Other
Countries
 Three   predominant models
    National health insurance (NHI)
    National health system (NHS)
    Socialized health insurance (SHI)
References
 Shi,L., & Singh, D. (2011). Delivering health
  care in America: A Systems Approach. 5th
  ed. Jones & Bartlett: Boston, MA.

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Hlt 244 lecture

  • 1. Introduction to the US Health Care System Dr. Nicole Hatcher
  • 2. Objectives  By the end of the class, you should:  Understand the basics of the US health care system  Be able to name and describe the four key components of the US health care delivery system  Be able to differentiate the U.S. health care system and the free market  Have an overview of health care in other industrialized countries
  • 3. Primary Objectives of a Health Care System  To enable all citizens to receive health care services  To deliver services that are most effective and meet established standards of quality
  • 4. Major Players  Physicians  Administrators  Insurancecompanies  Large employers  Government
  • 5. Characteristics of the US Health Care System  No central agency  Access is selective  Imperfect market activity  Third party insurers as intermediaries  Multiple payers  Balance of power  Legal risk  New technology  Continuum of services  Quality
  • 6. Characteristic- #1  No central agency  Citizens are not entitled to receive a specific set of services  Lack of a global budget
  • 7. Characteristic- #2  Access is selective  Insurance  Affordability
  • 8. Characteristic #3  Imperfect market  Quasi-free market  In national health care, economic markets do not exist
  • 9. Characteristic #4  Third-party insurers and payers  Patient  Provider  Intermediary
  • 10. Characteristic #5  Multiple payers  Billing and collection  Cumbersome system
  • 11. Characteristic #6  Balance of Power  Multiple payers  Fragmented self-interests
  • 12. Characteristic #7  Legal risk  Litigious society  Defensive medicine
  • 13. Characteristic #8  High technology  R&D
  • 14. Characteristic #9  Continuum of services  Curative  Restorative  Preventative
  • 15. Characteristic #10  Quality  Continuous quality improvement  Higher expectations
  • 16. The Role of Government  Major financier  Determine reimbursement rates  Regulator of health professionals and health care establishments  Health policy
  • 17. Basic Components of a Health Care System: Quad-function  Financing  Insurance  Delivery  Payment
  • 18. Access to Care  What is access?  Key predictors of access  Financing and insurance  Delivery and payment
  • 19. A Complex Problem  The uninsured  41.6 million in 2004  16-17% of the total population (Nat’l Center for Health Statistics)
  • 20. Health Care Systems of Other Countries  Three predominant models  National health insurance (NHI)  National health system (NHS)  Socialized health insurance (SHI)
  • 21. References  Shi,L., & Singh, D. (2011). Delivering health care in America: A Systems Approach. 5th ed. Jones & Bartlett: Boston, MA.

Editor's Notes

  1. Before we describe the features of the US health care system, it is important to have a baseline understanding of the purpose and objectives of the system.
  2. The US health care system is very complex and consists of many moving parts. Some of the major players include physicians, administrators, insurers, large employers, and government. To give you an idea of how huge the system is here are a few statistics- the US health care system employs approximately 10 million people. There are approximately 744,000 active MDs, 2.2 million nurses, 226,000 pharmacists, 700,000 administrators, 5,760 hospitals, and 16,100 nursing homes.
  3. The United States health care system is very unique in comparison to the health care systems of other industrialized nations. Many experts suggest that the US health care system is not a true system because of the lack of coordination. The system is unique because there is no universal health care financed by taxes and there is no entitlement. No other country operates like the US health care system. To be more specific there are 10 characteristics that differentiate the US health care system from other systems. The 10 characteristics are listed here but we will talk about each one of them, briefly, in more detail.
  4. Access is the ability to obtain health care when it is needed