the u.s. healthcare system an overview of what's what

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1 The U.S. Healthcare System • An overview of what’s what

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Page 1: The U.S. Healthcare System An overview of what's what

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The U.S. Healthcare System

• An overview of what’s what

Page 2: The U.S. Healthcare System An overview of what's what

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Stakeholders

• Patients• Employers• Providers• Payers• Government• Accreditors

• Purchasers

Page 3: The U.S. Healthcare System An overview of what's what

3

What’s My Aim?

• Patients

Page 4: The U.S. Healthcare System An overview of what's what

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What’s My Aim?

• Patients– Unlimited wants / Access– Effective treatment

• Cure; symptoms; safety

– Efficiency of care– Economy of care– Education; knowledge– Low administrative burden– Respect

Page 5: The U.S. Healthcare System An overview of what's what

5OUTPUTSOUTPUTSINPUTSINPUTS

Customers

Community NeedPlan to Improve

Vision

Customer Knowledge

Design, Redesign

Suppliers

Process

back

Page 6: The U.S. Healthcare System An overview of what's what

6

Number of People, United States 1990 - 2020

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

1990 2000 2010 2020

85 + 65 +

Year

US Census Bureau released 12/23/99; 1/13/2000

Page 7: The U.S. Healthcare System An overview of what's what

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What’s My Aim?

• Employers

Page 8: The U.S. Healthcare System An overview of what's what

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What’s My Aim?

• Employers– Satisfied employees– Contain health care costs– Employee wellness– Profitability of the firm

Page 9: The U.S. Healthcare System An overview of what's what

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What’s My Aim?

• Providers

• Who are?

Page 10: The U.S. Healthcare System An overview of what's what

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Care Providers

• Examples– Pharmacists– Physicians– Physician Assistant– Nurses / Nurse Practitioner– Dentists

Page 11: The U.S. Healthcare System An overview of what's what

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What’s My Aim?

• Providers– Improve health of patients– Autonomy– Authority– Economic viability of the practice– Professional development– Research

Page 12: The U.S. Healthcare System An overview of what's what

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What’s My Aim?

• Payers

– Who are?

Page 13: The U.S. Healthcare System An overview of what's what

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What’s My Aim?

• Payers– Coordination of transactions– Rate setting– Risk assessment and underwriting– Information– Economic viability– Legal / ethical considerations

Page 14: The U.S. Healthcare System An overview of what's what

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Health Insurance in the United States

64% 24%

14%

US Census Bureau Current Population Survey http://www.census.gov/prod/2001pubs/p60-215.pdf

PrivatePrivate

PublicPublic

NoneNone

Page 15: The U.S. Healthcare System An overview of what's what

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Health Insurance in the United States

Uninsured

Medicaid

Medicare

Military

Private Self-purchase

Employer -Based

64%

14%

10%

13%

8%

US Census Bureau Current Population Survey http://www.census.gov/prod/2001pubs/p60-215.pdf

+ Rx Limited Rx Usually No Rx

Page 16: The U.S. Healthcare System An overview of what's what

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Components of the Care Care Premium Payment

HIAA Issue Brief: “Why Do Health Insurance Premiums Rise?” March 2000

Physicians and Physicians and Other Health Other Health

ProvidersProviders

43%43%HospitalsHospitals

32%32%

Drugs and Drugs and Medical SuppliesMedical Supplies

13%13%

Nursing and Nursing and Home Health Home Health

CareCare

2%2%

Claims and Claims and Consumer Consumer ServicesServices

10%10%

Page 17: The U.S. Healthcare System An overview of what's what

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U.S. Health Care Spending

1.9

1.6

1.3

0.9

0.6

0.20.1

0.0

0.5

1.0

1.5

2.0

1970 1980 1990 1995 2000 2005 2008

OverallRx Drugs

year

U.S.Trillion

$

11%5%

National Health Statistics Group, Office of the Actuary, Health Care Financing Administration: National Health Accounts

HIAA Issue Brief: “Why Do Health Insurance Premiums Rise?” March 2000: Source: CMS Data

Page 18: The U.S. Healthcare System An overview of what's what

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What’s My Aim?

Government• Federal

Government• State

Page 19: The U.S. Healthcare System An overview of what's what

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What’s My Aim?

• Government• Federal

– Provide for those whom the market does not serve

– CMS

– Prevention

– Research

– Regulate

• Government• State

– Provide for those whom the market does not serve

– Medicaid– Local programs– Mental health– Elderly– Regulate

Page 20: The U.S. Healthcare System An overview of what's what

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What’s My Aim?

• Accreditors

Page 21: The U.S. Healthcare System An overview of what's what

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What’s My Aim?

• Accreditors– Quality– Audit– Unintended consequences of cost containment– Evidence-based medicine– Credentialing

Page 22: The U.S. Healthcare System An overview of what's what

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Care Settings

Page 23: The U.S. Healthcare System An overview of what's what

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Care Settings

• Community / Ambulatory– Outpatients– Homebound– Assisted Living / Adult Day Care

• Inpatient – Hospital– Institutionalized

• Long-term Care– Nursing Home / Institutionalized

Page 24: The U.S. Healthcare System An overview of what's what

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Primary Care

• Physician– PA, NP

• Settings– Office– Clinic– ED

Page 25: The U.S. Healthcare System An overview of what's what

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Ancillary Care Services

• Pharmacy

• Laboratory

• Radiology

• Physical Therapy

• Alternative Therapies?

Page 26: The U.S. Healthcare System An overview of what's what

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Who Pays?

• Private– Indemnity insurance– Managed care

• HMO, PPO, POS

– Payment• Prospective (capitation)

• Retrospective

– Patient purchased

Page 27: The U.S. Healthcare System An overview of what's what

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Who Pays?

• Public– Medicaid

• FFS, Managed care

– Medicare• Medicare+Choice

– Other• Champus, SCHIP, etc

Page 28: The U.S. Healthcare System An overview of what's what

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Who Manages?

• Trends– Cost inflation

• Technology• Consumer demands / psychology• Market-based system• Prescription drugs• Demographics

– Baby boom

• Chronic disease• Lifestyles

– rationing

Page 29: The U.S. Healthcare System An overview of what's what

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Who Manages?

• Trends– Quality of care

• Satisfaction

• Safety– Error

– Risk

• Efficiency of health care delivery– Reduce waste

Page 30: The U.S. Healthcare System An overview of what's what

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Who Manages?

• Regulation / Accreditation– CMS– QIOs– NCQA– JCAHO– Patients’ Rights– IOM