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class III medical devices
-support life -requires premarket approval from the FDA
cost sharing
-spreads risk from individual to group -helps avoid moral hazard
how do managed care plans differ from traditional insurance
-contract with certain providers
medicare part A
-hospital insurance -covers inpatient services, hospice skiled nurse
medicare B
-financed by annual deductables -physician services, outpatient, diagnostics
medicare C
-private health care insurance -HMOs, PPOs
medicare D
-prescription drugs
capitation
-fixed monthly fee -removes incentive for provider induced demand
retrospective
-actual price when provider delivers service -need to do more to get more
prospective
-set price before -no incentives to keep patients longer
what incentives do providers have to do discounted fee arrangements
-higher volume of patients
when was the HMO act passed and how did it work
-1973 -trend increased but slowed down in 80s
why did managed care grow in 1980s
-private businesses couldnt afford rising premiums, wanted control over cost to help profits
main characteristics of HMO
-use of gate keeping -focus on prevention and primary care -soem fee for service
differences between HMO and PPO
-PPO's you can go out of network -PPOs use more specialty care before preventative -no risk sharing with PPOs
three meanings of cost
-consumers + financers: physician bills -national perspective -providers perspective
major factors contributing high costs
-growth of tech -increase in elderly -abuse of medicare/caid
PROs
peer review organization -assesses care
2 competition based cost containment stradegies
-demand side incentives: wants customers to be more conscious -supply: wants health care organizations to be cost efficient
implications of definition of quality
-doesn't include cost or access -quality occurs on a continuum -emphasis on desired health outcomes
dimensions of quality micro macro
-micro-services at point of delivery, quality of life, patient satisfaction -macro- quality from population stand point, cost, access, population health
new developments and improvements
-clinical practice guidelines: a plan for managing clinical problem based on evidence -cost efficient when benefits recieved are greater than cost incurred -timeline that identifies planned medical interventions along with expected patient outcomes

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