Running head: PRICE AND QUALITY CONTROLS 1
HSM 410 Week 3 Discussion Question 2 – Reimbursement Cost Controls
Price controls
It will be unlikely for price controls to work in the healthcare since they attack the runaway cost
symptoms and not the cause. Today, medical costs are soaring since consumers are greatly
insulated by the illusion that their health insurance cover is paid by their employers. In addition,
the tax system is likely to discourage the consumers from striving to get proper value for their
money in healthcare (Hansen et al., 2009). Such a situation therefore calls for price controls on
out-of-pocket medical costs such as insurance premiums and outpatient pharmaceuticals, while
rapidly rising medical costs is not noticed by Americans not paying for them directly (Hansen et
al., 2009). Not only do price controls fail to work, but they also produce severe side effects,
which would not be acceptable by majority of Americans. A Price control is likely to result into
shortage of goods and services, which in turn leads to waiting lists for limited supply. Price
controls benefit richer and well-connected consumers at the expense of other consumers (Hansen
et al., 2009). In addition, price controls encourage bribery and black markets. For example, in
Japan, patients who seek better quality and quicker care will most likely pay bribes of between
$1, 000 and $3, 000 in order to get treatment from senior specialists.
Quality controls
These are sets of procedures that are designed to ensure that performed services adhere to a set
quality criteria or that the services offered meets the requirements of a customer or client. In
order to implement an effective quality control program, an organization must decide on the
specific standards that the service or product must meet (Webber & Wallace, 2011). The extent of
actions of quality controls must be established. For example, the percentage of the units that
needs to be tested from each lot, after which a real world data is collected.
This study source was downloaded by 100000829957125 from CourseHero.com on 03 -02-2022 23:37:42 GMT -06:00
https://www.coursehero.com/file/36401539/Week-3-Discussion-Reimbursement-Cost-Controlsdocx/
HSM 410 Week 3 Discussion Question 2 – Reimbursement Cost Controls
Price controls
It will be unlikely for price controls to work in the healthcare since they attack the runaway cost
symptoms and not the cause. Today, medical costs are soaring since consumers are greatly
insulated by the illusion that their health insurance cover is paid by their employers. In addition,
the tax system is likely to discourage the consumers from striving to get proper value for their
money in healthcare (Hansen et al., 2009). Such a situation therefore calls for price controls on
out-of-pocket medical costs such as insurance premiums and outpatient pharmaceuticals, while
rapidly rising medical costs is not noticed by Americans not paying for them directly (Hansen et
al., 2009). Not only do price controls fail to work, but they also produce severe side effects,
which would not be acceptable by majority of Americans. A Price control is likely to result into
shortage of goods and services, which in turn leads to waiting lists for limited supply. Price
controls benefit richer and well-connected consumers at the expense of other consumers (Hansen
et al., 2009). In addition, price controls encourage bribery and black markets. For example, in
Japan, patients who seek better quality and quicker care will most likely pay bribes of between
$1, 000 and $3, 000 in order to get treatment from senior specialists.
Quality controls
These are sets of procedures that are designed to ensure that performed services adhere to a set
quality criteria or that the services offered meets the requirements of a customer or client. In
order to implement an effective quality control program, an organization must decide on the
specific standards that the service or product must meet (Webber & Wallace, 2011). The extent of
actions of quality controls must be established. For example, the percentage of the units that
needs to be tested from each lot, after which a real world data is collected.
This study source was downloaded by 100000829957125 from CourseHero.com on 03 -02-2022 23:37:42 GMT -06:00
https://www.coursehero.com/file/36401539/Week-3-Discussion-Reimbursement-Cost-Controlsdocx/
