The Costs Minimization in Healthcare Essay

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Healthcare Provider Role in Minimizing Costs

Healthcare has stagnated as providers cannot charge higher rates while payers cannot increase premiums. The balance between cost and patient care is fragile, and the duty of it lies upon the healthcare provider. The first reason is general policy and objective, whereby it is common for most providers to find strategic ways to reduce costs to increase access to healthcare (Kini & Ho, 2018). This premise is part of their overall care provision culture, yet many people are being locked out of healthcare due to high costs, whereas healthcare policies, values, mission, and vision statements are based on healthcare for all, and hence, an effective way is cost optimization.

Another reason is adherence to legal stipulations through which most states have Affordable Healthcare Acts, such as the renowned ‘Obamacare’ in the U.S, which require providers to make affordable health insurance for people (Kini & Ho, 2018). Also, providers should provide care at the lowest costs possible and advise patients concerning healthcare ethics. According to the American Medical Association Principles of Medical Ethics, a Physician shall support access to care for all people (Kini & Ho, 2018). This ethical duty would involve minimizing costs and providing information concerning the most affordable options for the patient.

Medical costs correlation to patient adherence

Notably, the correlation between healthcare costs and medication cost is well-founded in the studies. Recent reports (2015-2020) show that prescription abandonment rates reduced to less than 5% when the prescription costs little or is not an out-of-pocket expense (Medicine spending and affordability in the U.S. (n.d.). In contrast, the more the cost significantly increases, the higher the abandonment rate increases to close to 60% (Medicine spending and affordability in the U.S. (n.d.). Additionally, the cost of medication is correlated to patient adherence due to the state of the economy. Drug prices are outpacing inflation, making patients prioritize their basic needs over their prescriptions (Medicine spending and affordability in the U.S. (n.d.). This trend indicates that a patient is likely to choose the former between food and medical prescriptions.

References

Kini, V., & Ho, P. M. (2018). . JAMA, 320(23), 2461. Web.

Medicine spending and affordability in the U.S. (n.d.). . Web.

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IvyPanda. "The Costs Minimization in Healthcare." April 23, 2024. https://ivypanda.com/essays/the-costs-minimization-in-healthcare/.

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