Information Technology (IT) has been around for a long time but most health care organizations have not embraced information technology as much as most other industries. Discuss this issue as it relates to your organization.

Given the material in the readings and our discussions; what trends suggest this may be changing shortly.

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Nusrat FatimaLv10

28 Sep 2019

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In the present paradigm, it has become evident that operational leaders and strategic leaders in health care must be able to appraise how economics impacts health care in the United States. Furthermore, it is critical successful leaders to possess an understanding of the variables and nuances that shape how supply and demand in this heavily regulated industry so they may observe trends and opportunities that lead to a functional organizational system.

Imagine that you are a manager running a unit in a rehabilitation center. Up to this point, your primary population of payers has been elderly patients who come into the center for physical therapy. Recently, there has been a demographic shift in the community. A large number of your primary population has moved out of the area or died, which has caused a shift in your revenues. You have been tasked by your director to illustrate the cost and revenue numbers relative to insurance payouts to ensure that your cost does not exceed your revenue. Drawing on your current professional expertise and understanding drawn from the required resources for this week, create an initial post in which you communicate how the potential payer mix relates economically to changing demographics in your given community. What potential solutions would you suggest to your director that might overcome the demographic shift? Analyze economic theories that are germane to your provision of services and identify one theory that might apply to this specific situation.

brownraccoon469

Throughout the years America has had its struggles to get to the place we are today. From African American rights to womenâs rights, we as have come a long way. But in present day itâs prevalent that we still need to make some changes. One group that has overcome these barriers tremendously is the womenâs struggle for equal rights. At one point in our history, women were not given any rights. Through the course of time and with the help of very strong women such as Susan B. Anthony, womenâs rights began to slowly evolve. We as women have the right to vote, freedom of choice when it comes to our bodies and other rights that the women of yesteryear werenât so fortunate to experience.

In present time, it is so visible how far women have come. We as Americans are making history by possibly having the first woman president of the United States of America. To watch this moment in time, unfold in front of our very eyes is truly epic. But yet, we as women in the work force generally make less money than men. This has been an issue for years, but America is ever changing and I am confident this will as well.

i need to comment on that

Case Study: Mental Health Parity

Presenting to the board, Chris spoke with passion. Our insurance plan should provide the same coverage for mental health services as for other medical services. It's the right thing to do, and it's good business. If our employees or their dependents have untreated mental health problems, the employees become less productive and waste money getting treated for other stuff. Thank you, Chris, said Kerry, the company's CEO. This is an important question for us, and the Benefits Committee will carefully consider it. After Chris left the room, Kerry turned to Jordan, the director of human resources, and said, Jordan, what's your take on this? There are actually two questions here, said Jordan. First, how elastic is the demand for ambulatory mental health services? How much will the use of mental health services increase if coverage improves? Second, how effective is mental health care? This second question is the more important one because good mental health care can have such powerful effects. Now, a number of studies have concluded that the use of mental health services is more price-sensitive than the use of other ambulatory care. Analyses of ambulatory mental health services have found elasticities ranging from 0.44 to 1.00. These results could be statistical flukes. Consumers who expect to use mental health services may choose insurance plans that offer generous coverage for those services. However, the RAND Corporation researchers Keeler, Manning, and Wells in 1988 used data from the RAND Health Insurance Experiment, which randomly assigned respondents to insurance plans, to resolve this issue. The RAND analysis generally confirmed that the demand for mental health services is more price-sensitive than the demand for general ambulatory medical services. Demand for each is inelastic, but the elasticity for mental health services is 0.8 and the elasticity for other outpatient services is 0.3. Most consumers will not use any mental health services, but plans that offer generous mental health benefits will cost more. We can't ignore this. I'm confused, said Addison, an internist on the board. In 2012 McConnell and colleagues published a study showing that Oregon's law requiring mental health parity in commercial insurance plans had little effect on spending. How could that be? Real-life appears to be contradicting the RAND study. I'm sure the plans for federal employees used managed care techniques to control spending, Jordan jumped in. And mental health spending isn't the issue. The issues are what happens to other healthcare spending and what happens to our workers. I'm pretty sure there's good evidence showing that effective mental health treatment can reduce other costs and improve productivity.

Discussion questions:

Why does it matter whether demand for mental health services is more elastic than demand for other services?

The price elasticity of demand for ambulatory mental health services appears to be about 0.8, and the price elasticity for general ambulatory medical services appears to be about 0.3. How much would spending increase for each type of care if copayments were cut from $40 to $25?

What managed care techniques do insurers use to control spending?

Is there evidence that better treatment of mental health problems reduces other spending?

Is there evidence that better treatment of mental health problems improves productivity?

What is your recommendation to the Benefits Committee?