This theory tends to shift part of the blame for over treatment back on the patient. Doctors claim that they order additional treatments because their patients insist on them. Forcing patients to share a greater portion of the costs of these additional treatments should arguably result in their being less demanding about receiving them.
Bureaucracy and overhead created in the delivery of health care and the administration of insurance benefits has also contributed to the substantial increase in health costs (Woodhandler 2003). The health insurance industry has campaigned to reduce health care costs but, in the process, has created a bureaucratic system that has effectively contributed to the problem. Additionally, compliance with governmental regulations has contributed to the bureaucratic difficulties as well. Practicing physicians and hospital administrator have been complaining for a long time that the costs related to legal compliance and insurance filings have been rising at an unbearable rate and that such costs are having a negative impact on their productivity. The same individuals complain that the lack of uniformity in forms and protocols make filing for insurance payments a costly experience. The solution to some of these overhead and administrative costs is the suggestion that the health care industry move to an accounting system where fee-for-services is abandoned and a system where services are provided pursuant to a set schedule. This would eliminate the need for each and every service having to be overseen and eliminate the need for the elaborate oversight system that currently exists.
The failure of the medical profession to adopt available technology has also caused an increased in medical costs. The profession has failed to adopt the use of email and still relies heavily upon traditional correspondence methods. One of the reasons offered is that fear of lawsuits causes doctors to ignore the use of email but concerns over the privacy rights of their patients. Access to emails creates a written record that doctors fear may hurt them legally in the event of litigation. Plus, insurance companies do not presently compensate doctors for preparing emails while they do for creating written medical records.
Another technology that doctors have been reluctant to embrace is the use of electronic medical records (EMR). EMRs have been demonstrated to promote better record keeping and to allow greater efficiency in the exchange of medical information between medical practitioners but physicians have been reluctant to alter their office policies in order to incorporate this technology into their practices. Doctors complain that the transition process is too time consuming and burdensome and that the benefits of its use do not outweigh the disadvantages. The new Affordable Care Act requires the profession to begin using the EMR system and pressure from the insurance industry is causing a move toward wider...
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