Healthcare Pricing Report - Analysis, Discussion, and Findings

This report examines the factors influencing healthcare pricing and the strategies employed to manage costs. It highlights the impact of inappropriate usage of medical services and equipment on the inflation of healthcare prices, referencing the work of Bodenheimer & Grumbach (2020). The report discusses the role of health insurance and reimbursement strategies in controlling costs, including both regulatory and competitive approaches. It emphasizes the importance of reducing unnecessary services and administrative inefficiencies to achieve cost-effective healthcare delivery. The report also touches upon the potential impact of innovative solutions on reducing healthcare costs and the need for governmental oversight to ensure fair pricing and access to care for patients and the community. The report concludes that a balanced approach is necessary to address healthcare costs effectively.

Running head: HEALTHCARE POLICY
HEALTHCARE PRICING
Name of the Student:
Name of the University:
Author Note:

1HEALTHCARE PRICING
Price of Healthcare
According to Bodenheimer & Grumbach (2020), the increase in price results in an
increase in the rate of cost to healthcare. The major elements in the inflation of health care
prices are inappropriate usage of medicines, utilities, equipment or any clinical procedures.
For illustration, the procedures such as radiographic imaging diagnosis are unnecessary all
the time. Therefore, the use of a CT scan will increase the cost of availing healthcare
services. The cost can be managed by controlling the financing of health insurance. The
major aim of it is to limit the flow of funds in the health insurance plans that will impact on
the reimbursement. It can be controlled with the help of regulatory strategy and competitive
strategy. Under the regulatory strategy, the government bodies regulate and control the public
expenditure for healthcare. Whereas, in competitive strategy, health insurance plans would
compete based on delivering lowest-cost plans. Reduction in reimbursement will reduce the
unnecessary service or inappropriate usage of any procedures. Most people avail of more
healthcare services under insurance coverage. Apart from reducing the financial cost, the
painless approach is very much effective that would reduce the cost and deliver quality
healthcare outcomes. The painless cost control includes eliminating inappropriate care,
reducing unnecessary administrative activity or inefficient clinical services. Innovation also
tends to save costs as every innovation results in reducing cost and cost-effectively. However,
if the price of hospital visits or any healthcare services increases, then it would lead to
imbalanced and the idea of reducing reimbursement will highly affect. The insurer has to
increase its premium and provides relief in providing services. Therefore, the public regulator
or governing bodies should have the power in controlling the cost for the benefits of patients
or the community.

2HEALTHCARE PRICING
References
Bodenheimer, T., & Grumbach, K. (2020). Understanding Health Policy (5th ed., pp. 1-
232). Mc Graw Hill. Retrieved from
https://pdfs.semanticscholar.org/1a79/3b7d499f3fd5c4fccd8a979353e045978179.pdf