Question

Describe some of the key features of the multi-payer and single payer health systems in the United Kingdom and Canada. What are the similarities and differences between them? How are they different than the multipayer US system? Describe some methods or approaches that might be taken to control rising costs and improve the quality of care?

Answer 1

Key features:-

OBJECTIVES: Healthcare systems worldwide are actively exploring new approaches for cost containment and efficient use of resources. Currently, in a number of countries, the critical decision to introduce a single-payer over a multipayer healthcare system poses significant challenges. Consequently, we have systematically explored the current scientific evidence about the impact of single-payer and multipayer health systems on the areas of equity, efficiency and quality of health care, fund collection negotiation, contracting and budgeting health expenditure and social solidarity.

STUDY DESIGN: This is a systematic review based on Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) guidelines.

METHODS: A search for relevant articles published in English was performed in March 2015 through the following databases: Excerpta Medica Databases, Cumulative Index of Nursing and Allied Health Literature, Medical Literature Analysis and Retrieval System Online through PubMed and Ovid, Health Technology Assessment Database, Cochrane database and WHO publications. We also searched for further articles cited by eligible papers.

RESULTS: A total of 49 studies were included in the analysis; 34 studied clinical outcomes of patients enrolled in different health insurances, while 15 provided a qualitative assessment in this field.

CONCLUSION: The single-payer system performs better in terms of healthcare equity, risk pooling and negotiation, whereas multipayer systems yield additional options to patients and are harder to be exploited by the government. A multipayer system also involves a higher administrative cost. The findings pertaining to the impact on efficiency and quality are rather tentative because of methodological limitations of available studies.

Difference:-

Simply put, a single-payer system of healthcare is where a single entity is responsible for collecting the funds that pay for healthcare on behalf of an entire population. A multi-payer system, by contrast, allows multiple entities (e.g., insurance companies) to collect and pay for those services.

In reality, the term single-payer is murkier than that and there’s a lot of room for variation. When looking to our global counterparts, the single-payer system in some rich economies (Germany, the Netherlands, and Switzerland) allows people to enroll in multiple insurance plans that are run by both private companies and non-profit organizations. Other countries, such as the United Kingdom, have government both run hospitals and employ physicians. Each system is the result of numerous iterations and a long evolution.

Methods to control rising cost :-

1. Hire the right people

Taking a careful approach to all steps in the hiring process — from recruitment to onboarding — is one of the most important cost control measures. Bad hires are expensive, and an employee who can't keep up with work demands takes a heavier toll on a business than some may think. According to research from Robert Half, managers spend more than 10 hours out of every 40-hour workweek coaching underperforming employees.

Finance executives also acknowledged that hiring mistakes negatively affect team morale. Of the CFOs surveyed, 91 percent said poor hiring decisions affect morale at their companies.

2. Negotiate annual contracts

If your business is anything like most other enterprises these days, you work with a variety of third-party vendors. The contracts with then are a great place to look for long-term cost control measures. Multi-year contracts will usually favor the supplier, so if you can reopen the contracts to annual bidding, you might be able to lower your cost of goods.

3. Build strong relationships with suppliers

Another important step in controlling costs is to be diligent about staying on top of your expenses. Putting off payments until the last minute or past the scheduled due date will only exacerbate costs in the long run. These practices are also likely to damage the relationships you have with your suppliers.

Instead, the best approach is to pay your invoices as early as possible. Another potential benefit: Organizations that enjoy good relationships with their suppliers may also have more leverage when it comes time to negotiate.

4. Use cloud computing as a cost control

Technology has advanced in such a way that your employees can be just as productive as ever — and perhaps, even more so — by relying on cloud-based servers to access data and use software. As more people telecommute and collaborate with colleagues in different regions, cloud financial solutions are fast becoming ways for organizations to enhance efficiency and reduce overhead costs. The cloud provides round-the-clock access to business data, and financial Software-as-a-Service programs can give firms greater flexibility.

Want to help your company’s bottom line? Cost control, whether it's through hiring, supplier contracts and relationships, or cloud technology, can impact your profits over the long term and position your company for success.