By Michael D Reagan
An insightful coverage research that indicates that during the yank political context, health and wellbeing care is neither completely a public correct nor a personal privilege.
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Extra info for The Accidental System. Health Care Policy in America
Copyright © 1999 by Westview Press, A Member of the Perseus Books Group Published in 1999 in the United States of America by Westview Press, 5500 Central Avenue, Boulder, Colorado 80301-2877, and in the United Kingdom by Westview Press, 12 Hid’s Copse Road, Cumnor Hill, Oxford OX2 9JJ Library of Congress Cataloging-in-Publication Data Reagan, Michael D. The accidental system : health care policy in America / Michael D. Reagan. p. cm. — (Dilemmas in American politics) Includes bibliographical references and index.
Reversing the incentives means that in the managed care world the less that is done, the more net income the organization retains. For example, if the average hospital stay for my condition is six days and a DRG rate is set on that basis, but I am fit enough to be sent home in three, the hospital will make money. If I have to stay ten days, it will lose. The HMO receives a fixed sum per subscriber (that’s what capitation means), but its own costs vary. The lower its costs, the more of its gross income it retains.
In World War II, booming industrial production was causing incomes to rise. Wage and price controls were put in effect to prevent runaway inflation, but war production needs had nearly eliminated many civilian goods from the shelves. Unable to bargain for wage increases, unions pushed for fringe benefits—and corporations making high profits and fearing any disruption acceded to the demands. When these benefits were ruled to be permissible under the wage controls, they took off, and health care coverage was an immediate beneficiary, along with pensions.