¶ … Business Terminology in Health Care
The Health Care Industry, idealistically is a large conglomeration of helping individuals and organizations who's sole purpose is to help people become more healthy, be that through prevention of disease or treatment of disease. Yet, it is known among nearly all health care professionals and almost all people who have ever been treated in the health care industry, even in the most minor way, which includes nearly all of the population, that the "Health Care Industry" is just that, an industry. This industry is governed by profit and loss just as any other; possibly even more so in the sense that the more loss there is the less people can be helped.
Over the past fifty years, as technology expands and costs rise there has been a noticeable change in health care delivery, for better and for worse most would say.
Change in the United States is being driven by rising costs, the failure to provide universal coverage, consumer dissatisfaction, and the increasing recognition that the country has poor life expectancy and high infant mortality despite an expenditure on health care far higher than any other country. (Savage 1997-page 1495)
The most notable change for most patients is the impersonal nature of health care delivery. The rising cost of health care, scarcity of labor, consumerism, competition driving down profits, limited access to capital are all considered the greatest challenges to health care in the next few years. (Redd & Kongstvedt 2004-page 36)
The reasons for these financial pressures are varied and well-known: an aging population; demanding consumers; increased utilization, particularly for pharmaceutical and hospital outpatient services; increased regulation and benefits mandates; rising malpractice awards and premiums; variations in practice and medical errors; and new technological advances, such as drug-eluting stents, genomics for health screening, and specialty pharmaceuticals. So if financial pressures have plagued the industry for years, what will be different in 2004? Put simply, what is new is the magnitude of the problem. The costs are higher and frustration levels are greater than ever. (Redd & Kongstvedt 2004-page 36)
These issues compounded by consumer demands are the woes of the health care industry. Those providing care and those administering organizations and hospitals are all being made more and more aware of the problems, and as a result so are patients. Yet, the answer can simply not be the consumer needing to lesson demands, as the capitalistic economy requires such pressures to increase quality. So, should the patient embrace his or her role as consumer, and how willing are they to do that?
Fifty years ago, though less was known about nearly everything involving treatment of disease, health care was a more personal experience. You really knew your doctors and nurses and in many cases you had a clearer understanding of the work they were performing in an attempt to help you heal and if this wasn't the case you at least had a more personal level of trust for those providing your care.
People spent significantly more time in the hospital, when receiving treatment and therefore a much greater amount of time getting to know their providers.
The 32.7 million patients in the nation's hospitals 2001 had a much shorter average stay (4.9 days) than patients in 1970, who were hospitalized for an average of 7.8 days, according to the National Hospital Discharge Survey from the Atlanta-based Centers for Disease Control and Prevention. (CDC 2003 p S1)
The rapidly changing health care system has caused patients to balk at service and the impersonality of it, physicians and other providers to lament being unable to provide care in the way they would like to and even stress to both providers and patient when problems fall through the cracks because of limited time for consultation and care. Even the buildings themselves are being redesigned as a response to consumerism. (2001 International Conference and Exhibition on Health Facility Planning, Design and Construction 2001 pages 12-13) Pressures from insurance companies and administration seem to be dictating the quality of care for the patient, even health care risk-management traditionally a department that oversaw safety and incident reduction is now responsible for insurance compliance. (Chordas 2004 pages 25-28) Yet, there must be some middle ground for the patient, some assurance that the physician and all his support staff are acting in their best interest.
When patients in a health plan negotiate for better terms and conditions or clients lobby for better coverage from the Medicaid program, health care is a business and patients are customers. But when...
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