Is Competition in Health Care a Good Thing - Essay Example

?HEALTH AND SCIENCES AND MEDICINE TOPIC: IS COMPETITION IN HEALTH CARE A GOOD THING I. INTRODUCTION In the nineteenth century, the medical care was primarily a private and voluntary item; nevertheless, pauperism eventually took place as a result of illness (Robert Gordon University, undated). After a while, infirmaries began to pop up as an effect of the Poor Law authorities for sick people, which rapidly grew in number after the Local Government Board foundation because of the central influence of the doctors (Robert Gordon University, undated). Looking back, the growth and demand for infirmaries was resisted in the year 1885 because of the law that required people to be poor before he can make use of the information. Nevertheless, this law was later on abolished (Robert Gordon University, undated). Prior to 1948, health services were based mainly on the three foundations, namely: (1) charity and the voluntary sector, (2) private health care or insurance based, and (3) the Poor Law and local government. In 1948, these were finally unified when the NHS was formed. NHS is the UK’s National Health Service that uses taxes collected from the people; however, to augment the national health care service, around 8 percent of the total population still utilizes the services from private insurance company even though for the residents, NHS services are provided as a total free service with only nominal fees paid for the medications (Robert Gordon University, undated). The primary employer of health care professionals and general practitioners in the UK is the government. The General practitioners are employed by the NHS, and act as independent contractors serving as gatekeepers to the health care system and manages the care (Robert Gordon University, undated). II. COMPETITION IN THE HEALTHCARE As time go by, the healthcare system in the United Kingdom (UK) also goes forward continuously, and these changes are also adapted by the academic health centres in the health communities (Karpf, 2008). Competition in the health care systems began to arise as a result of these changes. The Health Foundation (2011) defined health care competition as a tool used to drive healthcare changes most especially when it is used to initiate to construct and make possible development. Gaynor, et al (2010) reported that in 2006, the English government introduced a policy to promote hospital competition and in such a way, choices are given to the patient to choose hospital care location. Information on the quality and timelessness of care was also provided by the government. Gaynor, et al (2010) noted that without raising much costs, lives of patients were saved as an effect of this healthcare competition. Death is also less likely, shorter length of stay, and cost of treatment were found out among those patients who were discharged from hospitals located in this markets (Gaynor, et al, 2010). However, competition in the health care system brings about both positive and negative impact in the health care provision not only in the UK but also globally. The Health Foundation (2011) defined competition in the healthcare system as an approach in the healthcare that aims to provide the patients a quality care they deserve. Conversely, the healthcare provides more choice to foster competition among other health providers to meet the health demands efficiently and effectively. High quality care at lower cost can be delivered through innovation of providers due to the competition in healthcare, which is designed to create incentives. Researches have suggested that higher productivity oftentimes results from any forms of competition (The Health Foundation, 2011). A report done by The Health Foundation (2011) noted that a poor outcome, double cost, and inefficient resources allocation was reported when the healthcare provider works with no competition. On the other hand, an improved outcome and choice was noted when healthcare competition exists, and therefore, healthcare providers manage the patients competitively. During the study, The Health Foundation (2011) noted certain challenges are seen in healthcare competition, and this includes duplicated services and excess in capacity seen in competition. On the other hand, The Health Foundation (2011) expressed that markets in competition services can drive down the quality of health services since they have seen it as a monopoly in the market. Sometimes, they’ve seen competition as a success in the market rather than in patient care because of too much focus on making profit. Also, they’ve seen that competition operative differently in the healthcare because they presume that in other industries, they operate differently in their own system. On the lighter side, it was found out that globally, the overall costs of health care between the hospital and the patient has been reduced by this competition (The Health Foundation, 20110). In England, the recent clinical outcomes are improved because of competition, but not in the USA where competition is likely more associated with the reduction of patients, providers, and commissioners cost (The Health Foundation, 2011). Potential fragmentation, reduction of access, and staff to patient resistance are among of the less positive outcomes of health care competition in the USA (The Health Foundation, 2011). Porter and Teisbeg (2004) viewed that an unyielding improvement in processes and methods which reduces the costs results from a healthy competition in the healthcare system. On the other side, there is a steady rise in the products and services that widely and rapidly diffuses as a result of better approaches in innovations. In another study made by Bloom, et al (2010) in the causal impact of competition on quality of hospital management concluded that an increase in hospital management and improvement in healthcare practices in the hospital correlated positively with higher healthcare competition. III. CONCLUSION In general, as a result of competitions of healthcare providing organisations, clinical outcomes have been improved, costs are reduced and the healthcare system had improved and functions more efficiently. On the other hand, the sceptics and enthusiasts of healthcare competition had overstated the difference and similarities of healthcare and as a result, the healthcare remains contested up to this date instead of making the competition a healthy way of improving the responsiveness and efficiency of health care delivery system in the UK. One of the major factors that may contribute to the dispute is the economic costs of the healthcare system competition and benefits that may outweigh the services which may provide benefits and positive outcome in the healthcare system and services in general. Hence, to this date, the competition of healthcare remains a contested issue. IV. REFERENCES 1 Agency for Health Care Research and Quality, 2009, What is Health Care Quality and Who Provides it?, downloaded 8 November 2011, from http://www.ahrq.gov/news/test031809.htm 2 Bloom, N., Propper, C., Seiler, S., and Reenan, J., 2010, The Impact of Competition on Management Quality: Evidence from Public Hospital, downloaded 8 November 2011, from http://www.stanford.edu/~nbloom/hospitals.pdf 3 Gaynor, M., 2006, What do we Know About Competition and Quality in Health Care Markets?, downloaded 8 November 2011, from http://www.andrew.cmu.edu/user/mgaynor/Assets/Gaynor_Quality_Comp_6.pdf 4 Gaynor, M., Serra, R., and Proper, C., 2010, Death by Power Market Reform, Competition, and Patient Outcomes in the National Health Service, downloaded 10 November 2011, from http://www.bristol.ac.uk/cmpo/publications/papers/2010/wp242.pdf 5 Gordon, R., undated, An Introduction to Social Policy: Healthcare, downloaded 5 November 2011, from http://www2.rgu.ac.uk/publicpolicy/introduction/health.htm 6 Karpf, M., Lofgren, R., Bricker, T., Claypool, J., Zembrodt, J., Perman, J., and Higdon, C. (2008), Defining the Role of University of Kentucky HealthCare in Its Medical Market—How Strategic Planning Creates the Intersection of Good Public Policy and Good Business Practice, downloaded 8 November 2011, from http://www.ukhealthcare.uky.edu/about/Defining-UKHC-Role-in-its-Medical-Market.pdf 7 Porter and Teisberg, 2004, Redefining Competition in Healthcare. Downloaded 10 November 2011, from http://hbr.org/web/extras/insight-center/health-care/redefining-competition-in-health-care 8 The Health Foundation, 2011, Competition in Heathcare, downloaded 10 November 2011, from http://www.health.org.uk/media_manager/public/75/Research%20scan%20-%20competition%20in%20healthcare%20(April%202011).pdf Read More