Running Head: MARKET COMPETITION IN HEALTH AND MEDICAL CARE

Market Competition in Health and Medical Care

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Running Head: MARKET COMPETITION IN HEALTH AND MEDICAL CARE

Economic Impact of Integrated Delivery Systems

According to Enthoven (2009), integrated delivery system is an organized, coordinated

and collaborated network that links various healthcare providers, through common ownership or

contract, across the economic, noneconomic and clinical domains to provide a coordinated,

vertical continuum of services to a particular patient population or community and is accountable

both clinically and fiscally for the clinical outcomes and health status of the population or

community served and has systems in place to manage and improve them.

From an economic perspective, introduction of an integrated care approach has led to an

improved health, and short and long-term cost savings. This may be achieved through avoidance

of complications, reduced health-care utilization and healthcare cost, labor productivity gains

where the working age population is concerned and reduced care burden (Sepucha, Fowler &

Mulley, 2004). Integrated delivery system is meant to keep healthcare costs under control while

increasing the quality of care for the patient.

Moreover, these systems mitigate moral hazard because the doctors are salaried and do

not get more money by doing more diagnostics but hey prosper by keeping patients well.

How integrated Delivery System can Improve Economic outcomes for the U.S.

Healthcare Delivery System

Integrated delivery systems can manage costs through holistic disease management

programs whereby trained health professionals take over many of the duties formally performed

by doctors. For example, the job of helping a patient manage his/her diabetes can be managed by

a team of medical professionals including nurses, educators and nutritionists who can provide

lifestyle coaching, mentoring and routine checkups which were previously done by doctors at a

much higher cost to (Enthoven, 2009).

Running Head: MARKET COMPETITION IN HEALTH AND MEDICAL CARE

References

Enthoven, Alain C. “Integrated Delivery Systems: the Cure for Fragmentation.”

American Journal of Managed Care 15 (2009): S284-S290

Sepucha K, Fowler F, Mulley A (2004). Policy support for patient-centered care: The

need for measurable improvements in decision quality. Health Affairs, 54:54–62.