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The Health Care Industry Proposal


Health Care is a term used to refer to all duties geared towards provision of necessary measures concerned with human health. Such duties and services are normally provided through professionally trained medical personnel (U.S. Department of Health and Human Services). However, provision of medical services always requires adequate finances from the recipient for health stability to be maintained.

This should be organized based on medical legislative policies and standards governing the healthcare system within specified regions or countries. The health care industry faces numerous challenges which require urgent and adequate address; these challenges are in form of costs as well as complex processes followed to ensure delivery of right services.

Various economic effects also contributes towards rising costs on health insurance premiums, this has seen reduction in access to efficient medical care. Such factors have led to elimination of health care insurance services by most employers (U.S. Department of Health and Human Services).

Summary of the selected chapter

The chapter focuses on the challenges facing healthcare sector in the process of providing their services to individuals, this includes the provision of health care insurance it’s pricing and the effects on population. The healthcare industry comprises of several services including those given in hospitals, nursing homes, laboratories and health care experts.

There are indeed numerous communication tools utilized by the caregivers which could help in the facilitation of health care provision. Such tools are capable of delivering necessary guidance and support hence assist in enhancing citizens’ confidence on their health care system and management.

Health care management plans should be provided so as to help facilitate the processes of managing health conditions in an appropriate and consistent way based on medical personal plan. Several policies have been proposed by the United States concerning patient health protection based on affordable services (U.S. Department of Health and Human Services).

Other countries also have systems concerning the same where national health insurance is paid by the government using tax revenues ensuring that individuals can access health services at affordable costs or no cost at all. However, in America the private health insurance is currently paid by the employers.

This has had dire consequences to the population since health paid for in such manner could create intractable incentives which could lead to higher prices. The other problem also emerges on the regulation process which will require up-grading of the current insurance system (Health Care 434).

Health care costs require review to the extent of enabling consumers purchase their value for money services. Health care marginal benefits should be positive and of great benefit to the society. Rationing mechanisms might be utilized to ensure control on the cost of health care; even the use of non-price mechanisms such as offering health insurance could be utilized.

The United States applies the use of government insurance regulation which has had both positive and negative impacts (Health Care 443). Supply of medical practitioners is also raising concerns since despite increase in number of physicians; their services fail to meet the demand of the American population.

Technological changes within the medical field have also affected the industry by lowering costs such as reducing lengths of stay in hospitals but at the same time some technological advances have significantly increased the prices of services offered (Health Care 444). In addition, there is also emergence of managed-care organizations which assists in controlling costs of medication ensuring that all citizens irrespective of their social status reduces their health care expenditures.

Moral Hazard Problem

This problem involves the issue when one party alters the agreement signed between two parties in a way that is costly and detrimental to the other party. There are several inefficiencies prevalent within the health care system. Such include fraud and abuse cases against patients by the medical staff in exposing confidential medical information concerning individuals.

According to medical ethics it is always necessary for Health information obtained from patients to be personalized and kept confidential as per the agreement between the patient and the medical practitioner. This offers some confidence on the side of the patient hence expresses readiness to seek more and more medical counselling.

Patients’ medical reports should always be handled with lots of caution and every effort applied to ensure their protection since it can either act as source of encouragement or discouragement depending on how such information is handled by the experts. Exposing medical information concerning patients with certain diseases may lead to social discrimation within the job market (Health Care 434-484).

From another perspective health care insurance at times causes people to react in different ways. It at times makes people to be reluctant on the issues concerning their personal health hence not paying much attention on preventive measures.

The insurance cover also makes individuals at times to breach their integrity on the use of medical incentives. They are times when individuals are tempted to use healthcare frequently than expected compared to when there is no provision on insurance coverage.

Weak security accorded to patient’s medical information could be attributed to lack of appropriate information system technology. However, with the improvement in technological know-how, high standards of ethics and technology are applicable for the confidentiality purposes in all sectors within the industry.

Such standards are expected to be maintained within organizational bodies such as healthcare clearinghouse concerned with data retrieval and compilation. This should happen for the purposes of building good rapport between individuals and medical specialist (Health Care 434-484).

Falsification of medical records should be treated with a lot of concern. All the records need to be straight including those of third parties. The manner in which medical records as well as financial records are handled within health institutions determines to a large extent the level if investors interests in providing support to healthcare system. All entries for every transaction should be shown for accountability purposes as well as maintaining financial integrity.

Financial management within the health care industry should be realigned to reflect the standards based on Generally Accepted Accounting Principles. GAAP ensures that the right financial procedures are applied and followed by all medics in relation to organization’s activities, calling for their full cooperation in providing valid information (U.S. Department of Health and Human Services)

Inappropriate information on financial records should lead to direct termination of the concerned employee. Un-ethical practices within medical field in line with financial management include; alteration of true financial transaction figures, inappropriate entries on income and expenditures, maintenance of fraudulent accounting reports and documents, recording any payments outside those described within the confines of the hospitals’ rules and regulations and forgery of signatories (U.S. Department of Health and Human Services).

Integrity of healthcare institutions revolves around the reputation of its employees. Medical organizations should not allow personal financial inducements to control their overall professional performances on administering appropriate treatment.

All activities and practices should be performed under the guidance of already set ethical principles. Various core values guarding individual services within medical institutions should be observed even by the various medical associates, like pharmacists and medical engineers (U.S. Department of Health and Human Services).

Solution to the problem

The problem could be addressed through enforcement of ‘Health Insurance Portability and Accountability Act (HIPAA) of 1996’ (HIPAA) security which applies comprehensive address on the legislative procedures concerning individual health policies (Rada). The policy enables easy identification of fraudulent activities within the health care industry, and also protects patients from such abuses as job discrimination.

The statute enables Americans to easily access health insurance benefits since it makes easy insurance portability processes. All individual medical documents are transformed into reports which are easily approved by the concerned organizational bodies dealing with medical reports.

The procedure is used in keeping policy records with high level of confidentiality and ensures maintenance of integrity. There is also provision on the necessary fines imposed on individuals upon breaching of the policies within the statute. Managed-care organizations work closely with the statute in ensuring that patients are well served by various physicians despite looming disadvantages provided by the policies.

There should be no denial of highly effective treatment based on the prices charged by the medics, this would ensure that proper insurance services are extended to millions of people within the United States (U.S. Department of Health and Human Services).

Works Cited

Health Care. Microeconomics Issues and Policies. NY: Health Administration Press, 2010. Print.

Rada, Rodgers. How HIPAA Compliant Can Any Technology Be?” HIPAA Advisory: Phoenix Health Systems. Web. 2010 Web.

U.S. Department of Health and Human Services. “Security and Electronic Signature Standards; Proposed Rule.” The Federal Register, 63.155 (1998): 43242-43280. Web.

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"The Health Care Industry." IvyPanda, 6 Dec. 2019, ivypanda.com/essays/health-care-4/.

1. IvyPanda. "The Health Care Industry." December 6, 2019. https://ivypanda.com/essays/health-care-4/.


IvyPanda. "The Health Care Industry." December 6, 2019. https://ivypanda.com/essays/health-care-4/.


IvyPanda. 2019. "The Health Care Industry." December 6, 2019. https://ivypanda.com/essays/health-care-4/.


IvyPanda. (2019) 'The Health Care Industry'. 6 December.

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