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U.S. Health Care Delivery : An Overview

U.S. Health Care Delivery : An Overview. Objectives Gain broad understanding of how health care is delivered in the United States Learn main characteristics

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Page 1: U.S. Health Care Delivery : An Overview. Objectives Gain broad understanding of how health care is delivered in the United States Learn main characteristics

U.S. Health Care Delivery:

An Overview

Page 2: U.S. Health Care Delivery : An Overview. Objectives Gain broad understanding of how health care is delivered in the United States Learn main characteristics

Objectives

• Gain broad understanding of how health care is delivered in the United States

• Learn main characteristics of U.S. health care delivery system

• Recognize differences between U.S. health care delivery system and national health programs of most developed countries

• Learn of U.S. health care delivery subsystems

Page 3: U.S. Health Care Delivery : An Overview. Objectives Gain broad understanding of how health care is delivered in the United States Learn main characteristics

• What is health care delivery?

• What is a health care delivery system?

Page 4: U.S. Health Care Delivery : An Overview. Objectives Gain broad understanding of how health care is delivered in the United States Learn main characteristics

U.S. Health Care Delivery: A Systems Framework

• Health care delivery in the United States– Is based upon a foundation of historical, cultural,

social, and economic factors– Consists of a logical arrangement of various

interrelated and interdependent components– Demonstrates a progression from “inputs” to

“outputs”– Despite appearances, it is not an accident!

Page 5: U.S. Health Care Delivery : An Overview. Objectives Gain broad understanding of how health care is delivered in the United States Learn main characteristics

Outpatient & Primary Care

Inpatient & Acute Care

Long-term & Post-acute

Care

Structure & Processes

Human Resources

Technology

Financing

CostAccessQuality

Policy & Reform

OutputsInputs

Managed Care & Health Networks

Underserved Populations

U.S. Health Care Delivery: A Systems Framework(Adapted from Shi & Singh, 2013)

Cultural, Social, & Economic Factors

System Foundations

Historical FactorsFuture Trends

Page 6: U.S. Health Care Delivery : An Overview. Objectives Gain broad understanding of how health care is delivered in the United States Learn main characteristics

U.S. Health Care System:The Main Characteristics

• The U.S. health care system is unique in comparison to the health care systems of other developed countries

• Ten main areas of distinction

Page 7: U.S. Health Care Delivery : An Overview. Objectives Gain broad understanding of how health care is delivered in the United States Learn main characteristics

❶ No central governing agency,Little integration and coordination

• Not centralized• Complex and costly• A variety of payment, insurance, and delivery

mechanisms• Large role of private sector• Limited but important role of federal & state

governments

Page 8: U.S. Health Care Delivery : An Overview. Objectives Gain broad understanding of how health care is delivered in the United States Learn main characteristics
Page 9: U.S. Health Care Delivery : An Overview. Objectives Gain broad understanding of how health care is delivered in the United States Learn main characteristics

Health Expenditures by OECD Country(Percent of GDP)

5.75.96.46.8

6.87.37.47.67.78.18.28.48.58.7

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Source: OECD Health Data 2009, OECD (http://www.oecd.org/health/healthdata).

Page 10: U.S. Health Care Delivery : An Overview. Objectives Gain broad understanding of how health care is delivered in the United States Learn main characteristics

❷ Technology driven,Focused on acute care

• Center of medical research & innovation– Creates growth in demand for new services– Negative outcomes accompany benefits

• Is the latest or most high-tech solution always the best?

• Would increased emphasis on primary care prevent acute conditions requiring high-tech intervention?

Page 11: U.S. Health Care Delivery : An Overview. Objectives Gain broad understanding of how health care is delivered in the United States Learn main characteristics

❸ High on cost,Unequal in access,Average in outcome

• The U.S. spends more than any other developed country on health care

• Despite rising expenditures, many residents have limited access to basic care

• Despite rising expenditures, the U.S. lags behind other developed nations in numerous population health measures

Page 12: U.S. Health Care Delivery : An Overview. Objectives Gain broad understanding of how health care is delivered in the United States Learn main characteristics

Health Expenditures by OECD Country

Source: OECD Health Data 2009, OECD (http://www.oecd.org/health/healthdata).

Page 13: U.S. Health Care Delivery : An Overview. Objectives Gain broad understanding of how health care is delivered in the United States Learn main characteristics
Page 14: U.S. Health Care Delivery : An Overview. Objectives Gain broad understanding of how health care is delivered in the United States Learn main characteristics
Page 15: U.S. Health Care Delivery : An Overview. Objectives Gain broad understanding of how health care is delivered in the United States Learn main characteristics

Health Expenditure Growth Trends(% of GDP)

Source: OECD Health Data 2009, OECD (http://www.oecd.org/health/healthdata).

Page 16: U.S. Health Care Delivery : An Overview. Objectives Gain broad understanding of how health care is delivered in the United States Learn main characteristics

Life Expectancy vs. Health Spending

Source: OECD Health Data 2009, OECD (http://www.oecd.org/health/healthdata).

Page 17: U.S. Health Care Delivery : An Overview. Objectives Gain broad understanding of how health care is delivered in the United States Learn main characteristics

❹ Imperfect market conditions

• The payer is not always the patient• Competition is restrained• Patients are not always well-informed• Information is difficult to obtain• Patients do not directly bear service costs• Patients’ ability to make decisions is limited

Page 18: U.S. Health Care Delivery : An Overview. Objectives Gain broad understanding of how health care is delivered in the United States Learn main characteristics

❺ Government as subsidiary toprivate sector

• Dominant private sector– Built upon American traditions

• Government spending fills in the gaps– Environmental protections– Support for research & training– Care for vulnerable populations

Page 19: U.S. Health Care Delivery : An Overview. Objectives Gain broad understanding of how health care is delivered in the United States Learn main characteristics
Page 20: U.S. Health Care Delivery : An Overview. Objectives Gain broad understanding of how health care is delivered in the United States Learn main characteristics

❻ Market justice vs. social justice:Conflict throughout health care

• U.S. health care system involves a fusion of these two principles

• Differing views of how to distribute care– Ability vs. need

• What might be the consequences of a system that favors market justice? Or social justice?

Page 21: U.S. Health Care Delivery : An Overview. Objectives Gain broad understanding of how health care is delivered in the United States Learn main characteristics

❼ Multiple players & Balance of power

• U.S. health care involves multiple players• Self-interests of players are often at odds• What might be the consequences of a system

with competing interests and voices?– Good? Bad?

• Is reform possible?

Page 22: U.S. Health Care Delivery : An Overview. Objectives Gain broad understanding of how health care is delivered in the United States Learn main characteristics
Page 23: U.S. Health Care Delivery : An Overview. Objectives Gain broad understanding of how health care is delivered in the United States Learn main characteristics

❽ Quest for integration & accountability

• Efforts in the U.S. to promote primary care as the organizing hub for continuous, coordinated, and comprehensive services

• Emphasizes patient-provider relationships as a means to improve individual and population

• Patient-provider relationships also require accountability

Page 24: U.S. Health Care Delivery : An Overview. Objectives Gain broad understanding of how health care is delivered in the United States Learn main characteristics

❾ Access to health care services isselectively based on insurance

• Access is granted to individuals who:– Have health insurance through employers– Are covered under government programs– Can afford to buy insurance with private funds– Can pay for services privately

• What are options for the uninsured?

Page 25: U.S. Health Care Delivery : An Overview. Objectives Gain broad understanding of how health care is delivered in the United States Learn main characteristics

❿ Legal risks influence practice behaviors

• “Litigious society”• Private health care providers are increasingly

becoming more susceptible to litigation– Risk of malpractice lawsuits– Costs of time, money, reputation, etc.– Defensive medicine a way to avoid litigation

Page 26: U.S. Health Care Delivery : An Overview. Objectives Gain broad understanding of how health care is delivered in the United States Learn main characteristics

Comparing to Health Care Systems of Other Developed Countries

• National health care programs with universal access

• Three basic national health care system models– National Health Insurance (e.g., Canada)– National Health System (e.g., Great Britain)– Socialized Health Insurance System (e.g.,

Germany)

Page 27: U.S. Health Care Delivery : An Overview. Objectives Gain broad understanding of how health care is delivered in the United States Learn main characteristics

Models of Health Care Delivery

• Bismarck Model– Sickness funds financed jointly by employers &

employees• Beveridge Model

– Health care provided & financed by government through taxes

• National Health Insurance Model– Government insurance purchases care from private

providers• Out of Pocket Model

– If you have the resources, you can pay for care

Page 28: U.S. Health Care Delivery : An Overview. Objectives Gain broad understanding of how health care is delivered in the United States Learn main characteristics

U.S. Health Care Delivery Subsystems

• In contrast to a universal health care delivery system, multiple subsystems have developed to comprise the U.S. health care delivery system– Managed care– Military– Vulnerable populations– Integrated delivery

Page 29: U.S. Health Care Delivery : An Overview. Objectives Gain broad understanding of how health care is delivered in the United States Learn main characteristics

U.S. Health Care Delivery Subsystems

• Managed care– Developed to contain health care costs &

expenditures– Seeks to achieve efficiency by integrating basic

functions of health care delivery– Employs mechanisms to control or manage

utilization of medical services– Determines the price at which services are

purchased and how much providers are paid– Most dominant health care delivery system in U.S.

Page 30: U.S. Health Care Delivery : An Overview. Objectives Gain broad understanding of how health care is delivered in the United States Learn main characteristics

U.S. Health Care Delivery Subsystems

• Military– Available free-of-charge to active-duty military

personnel– Well-organized, highly integrated system– Combines public health with medical services– In general, the military medical care system

provides high-quality health care

Page 31: U.S. Health Care Delivery : An Overview. Objectives Gain broad understanding of how health care is delivered in the United States Learn main characteristics

U.S. Health Care Delivery Subsystems

• Vulnerable populations– Poor, uninsured, minority or immigrant status– Live in geographically or economically

disadvantaged communities– Receive care from “safety net” providers– Without safety net providers, patients have to

forego care or seek care in hospital emergency departments (if one exists nearby)

– Subsystem faces enormous pressure

Page 32: U.S. Health Care Delivery : An Overview. Objectives Gain broad understanding of how health care is delivered in the United States Learn main characteristics
Page 33: U.S. Health Care Delivery : An Overview. Objectives Gain broad understanding of how health care is delivered in the United States Learn main characteristics

U.S. Health Care Delivery Subsystems

• Integrated delivery– The hallmark of U.S. health care industry over the

past decade – and becoming larger– Organizational integration to form integrated

delivery systems (IDS) or networks– Strategic linkages among hospitals, physicians, and

insurers– Objective: have one health care organization

deliver a range of services

Page 34: U.S. Health Care Delivery : An Overview. Objectives Gain broad understanding of how health care is delivered in the United States Learn main characteristics

U.S. Health Care Delivery Subsystems

• Long Term Care– Medical and nonmedical care that is provided to

individuals who are chronically ill or who have a disability.

– Health care and support services for daily living– Not covered by Medicare– LTC insurance is offered separately, but it can be

expensive– Expected to have more integration with the acute

care system

Page 35: U.S. Health Care Delivery : An Overview. Objectives Gain broad understanding of how health care is delivered in the United States Learn main characteristics

U.S. Health Care Delivery Subsystems

• Public Health System– Improve and protect community health

• Monitoring health status• Diagnosing and investigating, informing and educating

health problems and hazards• Developing policies• Enforcing laws and regulations• Assuring competent professional health workforce• Research

Page 36: U.S. Health Care Delivery : An Overview. Objectives Gain broad understanding of how health care is delivered in the United States Learn main characteristics

What We’ve Learned

• The U.S. health care delivery system is unique– Characterized by a patchwork of subsystems– Differs considerably from systems of other

developed countries– May be viewed according to a systems framework

to generally understand the various system components and features