How To Understand The Health Care System In The United States



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I E emiftm rf ttttue SoMeaiWii Care System Second EdMom Leiyu Shi, DrPH, MBA, MPA Professor Department of Health Policy and Management Bloomberg School of Public Health Johns Hopkins University Baltimore, Maryland Douglas A. Singh, PhD, MBA Associate Professor School of Business and Economics and the Department of Political Science Indiana University-South Bend South Bend, Indiana JONES AND BARTLETT PUBLISHERS Sudbury, Massachusetts BOSTON TORONTO LONDON SINGAPORE

Preface ix About the Authors xiii List of Exhibits xv List of Tables xvii List of Figures xix List of Abbreviations xxi CHAPTER 1 MAJOR CHARACTERISTICS OF U.S. HEALTH CARE DELIVERY 1 Introduction 1 Subsystems of U. S. Health Care Delivery 3 Characteristics of the U. S. Health Care System 9 Health Care Systems of Other Developed Countries 17 Systems Framework 21 Conclusion 24 CHAPTER 2 FOUNDATION OF U.S. HEALTH CARE DELIVERY Introduction 27 What Is Health? 28 Determinants of Health 31 Cultural Beliefs and Values 33 Strategies to Improve Health 34 Conclusion 46 27

iv Contents CHAPTER 3 HISTORICAL OVERVIEW OF U. S. HEALTH CARE DELIVERY 51 Introduction 51 Medical Services in Preindustrial America 53 Medical Services in Postindustrial America 57 History of Health Insurance 62 Medical Services in the Corporate Era 70 Conclusion 74 CHAPTER 4 HEALTH CARE PROVIDERS AND PROFESSIONALS 77 Introduction 77 Physicians 80 Dentists 87 Pharmacists 89 Other Doctoral-Level Health Professionals 90 Nurses 91 Nonphysician Practitioners 93 Allied Health Professionals 95 Health Services Administrators 97 Conclusion 98 CHAPTER 5 TECHNOLOGY AND ITS EFFECTS 103 Introduction 103 What Is Medical Technology? 105 Information Technology 105 Use of Medical Technology 109 Role of the Government in Technology Diffusion 112 Impact of Medical Technology 116 Assessment of Medical Technology 121 Benefits of Technology Assessment 123 Conclusion 124 CHAPTER 6 FINANCING AND REIMBURSEMENT METHODS 129 Introduction 129 Effects of Health Care Financing and Insurance 131 Insurance: Its Nature and Purpose 133 Private Insurance 135

Contents v Public Insurance 138 Reimbursement Methods 147 National Health Expenditures 151 Conclusion 154 CHAPTER 7 OUTPATIENT SERVICES AND PRIMARY CARE 157 Introduction 157 What Is Outpatient Care? 158 Scope of Outpatient Services 159 Outpatient Care Settings and Methods of Delivery Primary Care 166 Conclusion 177 161 CHAPTER 8 CHAPTER 9 HOSPITALS 181 Introduction 181 Evolution of the Hospital in the United States 182 Expansion and Downsizing of Hospitals in the United States 184 Access and Utilization by the U. S. Population 187 Utilization of Hospital Capacity 189 Hospital Employment 190 Types of Hospitals 190 Licensure, Certification, and Accreditation 198 Hospital Organization 199 Ethics and Public Trust 200 Conclusion 202 MANAGED CARE AND INTEGRATED SYSTEMS 205 Introduction 205 What Is Managed Care? 206 Evolution and Growth of Managed Care 208 Utilization Control Methods in Managed Care 212 Types of Managed Care Organizations 214 Impact on Cost, Access, and Quality 219 Health Networks 221 Types of Integration 222 Conclusion 226

vi Contents CHAPTER 10 LONG-TERM CARE SERVICES 229 Introduction 229 What Is LTC? 232 Community-Based LTC Services 237 Institutional LTC 241 Licensing and Certification of Nursing Homes 245 Other LTC Services 248 State of the Nursing Home Industry 249 Conclusion 251 CHAPTER 11 UNDERSERVED POPULATIONS 255 Introduction 255 Framework to Study Vulnerable Populations 256 Enabling Characteristics 264 Need Characteristics 266 Conclusion 268 CHAPTER 12 COST, ACCESS, AND QUALITY 271 Introduction 271 Cost of Health Care 272 High in Cost ' 273 Reasons for High Cost 276 Cost Containment 279 Unequal in Access 283 Average in Quality 289 Developments in Process Improvement 293 Conclusion 295 CHAPTER 13 HEALTH POLICY 299 Introduction 299 What Is Health Policy? 300 Principal Features of U.S. Health Policy 302 Development of Legislative Health Policy 310 Critical Policy Issues 313 Conclusion 321

EF" Contents vii CHAPTER 14 THE FUTURE OF HEALTH SERVICES DELIVERY 323 Introduction 323 Conflicting Realities of Cost and Coverage 324 Future of Managed Care, Health Care Costs, and System Reform 326 Trends in Health Insurance 331 Options for Comprehensive Reform 333 National and Global Challenges 335 Bioterrorism and the Transformation of Public Health 338 Future of the Health Care Workforce 339 New Frontiers in Clinical Technology 341 Evidence-Based Health Care 343 Conclusion 344 INDEX 349