Self-Interest Theory in the U.S. Healthcare Case Study

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Updated: Feb 5th, 2024

Introduction

The evolution of society is a complex process that depends on numerous factors impacting the emergence and increased importance of particular trends or tendencies. At the same time, the precondition the appearance of specific policies regulating the functioning of institutions or spheres fundamental for the development of communities. However, there are always some groups that promote one or another regulation as it falls within their interests and helps to fulfill their current needs. In fact, the existence of these groups and their struggle for influence are the central moving forces of societies evolution (Lebow 2017). That is why there are numerous theories suggested to investigate these issues.

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Definition

For instance, a self-interest theory is one of the conceptions suggested to explain individuals or groups decisions. It states that all individuals actions always spring from diverse self-interested motivations that appear under the impact of different factors (Lebow 2017). In other words, while acting from self-interest, a person aims at his/her own good or improvement of the current position. The given theory could be applied both to single individuals and their groups as every unit of this sort will act regarding its own interests and try to empower its position by pursuing particular goals (Lebow, 2017). In such a way, the self-interest theory becomes one of the fundamental approaches that could be used to explain the nature of individuals actions.

Power of Groups

Nevertheless, speaking about specific interest groups mentioned above, their ability to impact the evolution of the society should be explained. The fact is that the political power of these coalitions consists of several factors. First, they should possess a significant capital to impact leading policymakers and certain population groups by donations, advertising campaigns, and sponsorship (“Interest group and elite theories,” n.d.). Second, the given group should be involved in the political life of the state to be able to impact policies and regulations that might be undesired for them (“Interest group and elite theories,” n.d.). Finally, the interests of all group members should coincide to ensure that the given coalition will try to achieve a certain goal and devote all resources to attain success. The combination of all these factors results in the transformation of a coalition into a politically powerful unit.

Groups and the Evolution of the U.S. Healthcare

The importance of these groups could be evidenced by the role they played in the evolution of the U.S. healthcare sector. This sphere perfectly demonstrates the hyperpluralism of multiple interest groups that tried to pursue their own interests by lobbying and donating diverse political powers in the USA (Giaimo, 2014). Since the first stages of the development of healthcare, they have blocked numerous attempts to enact specific health policies and expand the health coverage to all citizens of the state (Giaimo, 2014). It resulted in the appearance of problems with access to healthcare and unfair distributional patterns that excluded some groups from the health system.

Major Interest Groups

In such a way, it becomes obvious that there are specific interest groups that have a concentrated interest in healthcare reform and try to promote policies important for them. They are comprised of healthcare providers, employers, unions, patients, and insurers that work in the sphere (Giaimo, 2014). In such a way, AMA (American Medical Association) that presents doctors interests is the first organization that wants to alter existing policies. The Health Insurance Association of America (HIAA) is another group that has numerous demands to the given sphere and tries to protect them (Giaimo, 2014). Finally, there are multiple groups consisting of the representatives of the business world who want to achieve particular goals that will help to improve their positions.

Motivation

These units participation in the evolution of the healthcare sector could be explained by their inclusion in the majority of processes that occur in the given sphere and the direct correlation between the functioning of the system, health outcomes, and these group’s incomes. For instance, AMAs engagement in reformation and policymaking comes from the fact that the organization represents doctors interests and their perspectives on the development of the sphere (Giaimo, 2014). As for HIAA, it’s functioning directly depends on the policies regulating the functioning of the sphere. Finally, businessmens groups consider the sphere their source of income which means that their active participation is explained by a particular self-interest.

Reasons

At the same time, different motifs for the participation in the political processes related to the healthcare sector resulting in the emergence of various demands for the health reform. AMA wants to attain increased payments for specialists and better working conditions, while HIAA focuses on the preservation of existing insurance practices and reconsideration of the approach to this issue by introducing additional terms that should be followed to provide patients with the needed health care (Giaimo, 2014). Finally, business groups want to promote their interests and guarantee that their incomes will not experience a significant reduction (Giaimo, 2014). In such a way, the existence of multiple interests regarding the reformation of the health care sector demonstrates the complexity of this task and proves a significant role groups play in this process.

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Challenges

Nevertheless, the central challenge these very groups face is the resistance of other coalitions and their attempts to promote a solution that will satisfy their own interests. In such a way, numerous factors impact the development of the sector and the appearance of specific health reforms. However, regarding the fact that the power of these interest groups differs significantly, the nature of challenges might also vary (Giaimo, 2014). At the same time, they all should oppose the governmental incentives and regulations that might contradict their interests and result in the weakening of their positions.

Finally, despite numerous obstacles and challenges that might appear, these groups still try to pursue their interests and support certain features in policymaking. There central reason for it is the ability to acquire an even more powerful position and spread its influence if the needed policy or regulation is accepted (Giaimo, 2014). Additionally, it will mean the improvement of the state of these groups representatives which is also extremely important for these coalitions and their struggle for better positions.

Conclusion

Altogether, the evolution of the society and its most important institutions to a greater degree depends on the functioning of particular groups within a state and interests they try to protect and promote. The given statement is evidenced by the policymaking tendencies in the healthcare sector as the existence of diverse coalitions like AMA, HIAA, and business groups results in the emergence of multiple barriers to the implementation of new approaches and regulations. However, acting regarding the self-interest theory, these units continue to impact the central stakeholders to affect decision-making and guarantee that the most appropriate outcomes will be achieved and the power of a certain interest group will significantly rise.

References

Giaimo, S. (2014). Interest groups, think tanks, and health care policy (1960s-present). In O. Thomas (Ed.), Guide to U.S. health and health care policy (pp. 375-392). Washington, DC: CQ Press.

Interest group and elite theories. (n.d.). Web.

Lebow, R. (2017). The politics and business of self-interest from Tocqueville to Trump. London, UK: Palgrave Macmillan.

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IvyPanda. (2024) 'Self-Interest Theory in the U.S. Healthcare'. 5 February.

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IvyPanda. 2024. "Self-Interest Theory in the U.S. Healthcare." February 5, 2024. https://ivypanda.com/essays/self-interest-theory-in-the-us-healthcare/.

1. IvyPanda. "Self-Interest Theory in the U.S. Healthcare." February 5, 2024. https://ivypanda.com/essays/self-interest-theory-in-the-us-healthcare/.


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IvyPanda. "Self-Interest Theory in the U.S. Healthcare." February 5, 2024. https://ivypanda.com/essays/self-interest-theory-in-the-us-healthcare/.

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