Healthcare System History
The aim of the essay is to compare heath care systems in different countries and find out whether the dominance of public or private spending is optimal for the society; here the comparison between UK and USA health care system will be appropriate. Question #2 In the USA nowadays the Private Health Insurance system is the major provider of health care services. Is this situation adequate to the demands of the tax payers and is it effective for different categories of people who need medical treatment? Should the ratio between private and public sectors in health care be changed and should the organization of both systems be reformed? Let ...view middle of the document...
Naturally, this has caused the growth of health expenditures.
In the 1970s the government was trying to stop the growth of spending on health care and offering different measures: price controlling and regulation of medical practice. These measures, however, didn’t work, as the doctors have been protecting their incomes. We can make a conclusion that the concurrence solely between GPs, private doctors etc. is not enough to maintain the balance of prices and provide the needs of consumers. In 1980s a lot of insurance companies called “Health Management Organizations” (HMOs) emerged; they were not offering direct medical treatment, but were instead making contracts with private doctors and taking the insurance payment from citizens.
This helped a little to reduce the growth of budget spending for medicine, but did not help to solve the problem in general, as they didn’t manage to perform a constructive structural change in health care system. The NHS services remained necessary for the less protected groups of society and their financing still was growing. The policy of both presidential candidates in 1990s included the concept of “managed care”, which meant the further development of HMOs network and the participation of the employers in it.
But statistics in the beginning of 2000s has shown us that not very many employers have accepted this offer, and those who were using “managed care”, were mostly big corporations. In 2002 Maxwell and Temin published a survey of more than 500 corporations in the US and it turned out that less than 10% of the employers offered “choice or fixed dollar contribution” [7, p. 39] to their workers. The reforms in 1990s years have been aimed to the reduction of budget costs involved into health care and stimulation of the concurrence between private doctors and NHS.
In fact, they have contributed to the development of the private practice and GPs in the US and have strengthened their positions against those of the NHS workers. Currently, the health care system funding in the USA is one of the highest in the whole world, and the ratio between GDP and health care expenditures is likely to become even higher in coming years.
But there is a contradiction between these high costs and the effectiveness of the treatment provided by the system. The reasons of this phenomenon are different: starting from the bureaucracy and great administrative spending in the NHS system, the lack of regulation of private practicing doctors, ineffective management system of public medical treatment, the tradition of “waiting lists” etc., ending with high tax rates and opacity of the NHS financing, and difference in NHS and GPs rates of earnings. (from America’s Debate – Universal Health Care) The results of a public opinion poll have shown that still more people support the idea of Universal health care rather than the idea of private doctors’ system.
Though on one hand, private practices and personal doctors are more convenient for...