Health care planners could be more effective and efficient

 

Health care planners could be more effective and efficient if they used the concept of the natural history of disease and the levels of prevention to design services that intervene at the weakest link in the chain of progression of specific diseases. Instead, most focus on high-technology solutions to preventable problems. Assess the characteristics of the medical care culture that encourage the latter approach

.Hospitals and other health care institutions, whether voluntary or for-profit, need to be financially solvent to survive growing market pressures. Describe how this “bottom line” focus has changed the nature of the US health care system

.The insurance industry plays a huge role in the American health care system and absorbs a significant portion of the health care dollar. A single-payer system, whether it is a private company or the US government, would eliminate the complex insurance paperwork burden and free substantial funds that could be diverted to support care for the under-served. Why do you believe that so much resistance to a concept used in every other developed country has continued in the U.S.?

 

Sample Solution

Health care planners could be more effective and efficient

High-technology solutions to preventable problems Medicine in the 21st century has continued to push the boundaries of science to unthinkable limits, often fusing complex technological elements and concepts together to achieve great feats. Two major contributing factors that have increased the use of high-technology in modern day medicine are Evidence-based Medicine and Health Informatics. Care fragmentation, non-value-added activities, workflow inefficiencies, and defensive medicine, among many others, reflect elements of a broken system. Lowering healthcare spending and improving care outcomes will not only necessitate better application of existing medical insights at the point of care, but also require significant changes to the delivery system.

Morningstar in 1993 reported that socially responsible mutual funds earned approximately 1% less returns annually as compared to the average mutual fund over the period 1988 through 1993. [2] Sally Hamilton, Hoje Jo and Meir Statman in their paper ‘Doing Well While Doing Good? The Investment Performance of Socially Responsible Mutual Funds’ [5] concluded that the returns generated by  socially responsible mutual funds are not much different than the returns on conventional mutual funds.  Jon Entine in his paper ‘The Myth of Social Investing’ [3] questioned the basis of the social ratings generated by social investment researchers like Kinder, Lydenberg, & Domini (KLD) and called these ratings flawed. He concluded that “Social investment advocates rely on sketchy, highly selective research and pseudo-objective ratings that belie the complexity of modern corporations and economies”. [3]

But advocates of SRI claim that it makes more sense to follow sustainable investment strategy to generate superior returns. They list out several advantages which socially responsible firms have over the other firms which make them financially stronger and more profitable.  Socially responsible firms are less likely to face environmental fines; they are less likely to face costly settlements resulting from liability lawsuits for bad quality products; good corporate citizenship may result in increased product sales; and employee loyalty resulting from good employee relationship will help improve productivity, innovation and thus profitability. [2]

Alexander Kempf and Peer Osthoff in their paper “The Effect of Socially Responsible Investing On Portfolio Performance” [1] used SRI ratings of KLD Research and Analytics to form two stock portfolios, one with stocks having high SRI ratings and the other with low SRI ratings. They studied the performance of these portfolios from 1992-2004 and found out that high-rated portfolio generated higher returns as compared to the low-rated portfolio.  They concluded that the studies which compared and proved lower performance of socially responsible mutual funds fail to account for the fact that the performance of mutual funds depend to a large extent on the skills of the mutual fund manager and thus the results of these studies may not reflect the true picture of socially responsible investments.  David A. Sauer in his p

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