Regulatory Strategies in the US Healthcare - Assignment Example

Macro decisions may be applied to save his or her life as the law allows. The macro decisions also reflect the government's decision on health-related measures despite being controversial in the majority of the counties. Secondly, law regulation is a regulatory strategy that is used in most instances like in statutory language which is used in authorizing payments for hospitals. In addition, they determine the kind of systems that are incorporated within the health care system, and which are beneficial to consumer health care. An example of the system includes the Medicare-regulated reimbursement that a health consumer is entitled to receive. Thirdly, the administrative procedure act which acts to clarify and directs different implementations with the health care centers and towards consumer health. The act is responsible for the numerous implementations like Medicare and Medicaid that add value to consumer health. In addition, the act ensures that laws for those who implement and those who are governed by the measures are effective and adhered to (Institute of Medicine (U.S.), 2003).

In my area, hospitals are merging with the intent of increasing their productivity toward consumer health. This has caused us heavily because of the increased cost of Medicare services offered by these merged hospitals. However, it is noted that the merged hospitals provide quality care and increased savings as patients are correctly diagnosed and treated before their conditions worsen. Most hospitals in my area that have merged have done due to fear of not surviving independently. They believe that by merging, resources are pooled together thus the quality of services offered at the merged center is improved. Thus, merging expands and increases the utilization of hospitals in my area by increasing the diversity of the services offered. Most hospitals that are merging in my area are taken over by larger hospitals that possess the potential to improve the equipment and services offered by purchasing new products and employing more qualified staff to serve patients suffering from different ailments (Kaplan, 2000).

The free healthcare market deviates from the perfectly competitive model due to the numerous government interventions. When the government interferes with the free health market then resources are not accurately allocated due to biasness. Some of its rules and regulations are also not conducive to a perfectly competitive model because health resources are allocated optimally. The government in most cases deems a free healthcare market not to be suitable for an ideal healthcare system as it is not sufficient enough to allocate the healthcare resources adequately.

To stop the government from interfering in the free healthcare market, I will recommend the free markets form a law that determines the level to which they can allow the government to interfere in their activities. This is because the government does not create free markets, but they have the power to interfere with its activities through various ways like taxes and subsidies. Free health markets should also have an extension of property rights to prevent the government from interfering in their operations. Players in the free healthcare market should also pool together to utter in unison what they want and how they want to run their hospitals or health centers. Lastly, though not a strong solution, I will recommend free markets be privatized to deny the government an opportunity to constantly interfere with their activities (Lin, 2012).