Question

Strategic Management in Healthcare Org. | HCM4025 S01

Health Savings Accounts: Case Study The United States has arguably the most advanced health care in the world. And yet, a large proportion of Americans do not have access to this care due to its high cost. Providers, consumers, and the government have long searched for a way out of this paradoxical situation. HSAs offer one solution. The American health care system is complex. A part of the population has access to health care through Medicare and Medicaid. Another part simply pays for care out of pocket. A substantial proportion of the population uses third-party payers to pay for care. Payers have reacted to the rising costs of care by introducing various gatekeeper mechanisms. These have not been popular with consumers who see them as restrictive. The American population is aging and the need for care is likely to increase over the next decade. While the earnings of health care professionals have been increasing, insurance premiums have also increased. Among hospitals, many are non-profit organizations offering substantial charity care. But for-profit and non-profit hospitals alike must show return on investment to remain viable. Providers must also factor reimbursement policies of payers into their decisions, sometimes even clinical decisions. These groups of stakeholders—patients, providers, payers, and the government—have different goals and different responses to the rising cost of care. Based on your understanding, answer the following: •In your opinion, can HSAs be aligned to the expectations of all these groups? •Do you think HSAs can help improve health care cost, quality, and access? Why or why not?

Answer 1

Health savings accounts can definitely be aligned to satisfy all the patients, providers, payers and the government. As one time investment is tough for most of the population, health savings accounts may become a solution for this problem. Based on the treatment costs, the non-profitable organizations can be provided with some returns to keep viable. At the same time, making available the services of government and non-profitable organizations to a particular group of people (based on certain criteria like financial and social background) can help in temporary management of the problem. Gradual implementation of health savings accounts may help in reaching these services to a large group of people, which can be achieved with a clear strategic administration.