Question

what is the predominant structural change in health care markets since 1965?

Answer 1

Health is not an ordinary asset, and thus has long been considered inadequate for classical economic analysis. However, in the 1970s, the welfare state crisis became evident, and fiscal, financial, and social powers began to scrutinize those segments of welfare provision where rising costs were confronted by stagnating revenues. The healthcare sector was no exception to this, particularly as this time was described by some as a' financial arms race.' Patients were fully covered by (public) insurance, which was charged on a fee-for-service basis, and medical providers were encouraged to provide more and more expensive healthcare.

A substantial proportion of patients admitted to US hospitals (about 40 percent) are over 65 years of age and thus protected by public insurance systems, especially Medicare. Approximately 5 percent of patients are covered by Medicaid, another public insurance program which provides insurance for children under the age of 18, pregnant women and people with disabilities. Private insurance programs typically mirror the structure of public programs, particularly in terms of setting reimbursement rates and processes for reimbursements.

By 1980, health-care prices were particularly concerned about high inflation. The PPS price control was implemented in response to that in 1983. Under the PPS, diseases and procedures were categorized into diagnosis groups or' DRGs.' Hospitals received a fixed amount per DRG, based on the national avera Once fitted with coverage, a primary care physician must be chosen by the patient. The expectation is that this physician will provide preventive care to handle the overall wellbeing of the patients, skillfully identify the universe of potential illnesses and prescribe and endorse the selection of a doctor and the assessment of their treatment plan should the patient need more specialized care. A single physician may vary in capacity across each of these margins.e cost of treating a patient in that DRG, with some changes to the living costs of the area where the hospital was located, proportion of the indigent patient population, and teaching status.