Healthcare cost containment.

• Main Authors: Goh, Mui Kiang., Leong, Tse Li., Lim, Beng Beng.
• Other Authors: Nanyang Business School
• Format: Final Year Project
• Language: English
• Published: 2013
• Subjects: DRNTU::Business::Accounting
• Online Access: http://hdl.handle.net/10356/51955
• Institution: Nanyang Technological University

This report attempts to give an overview of the state ofhealthcare cost and the various cost containment methods employed by various countries. The rising cost of healthcare provision throughout the world have provoked a vigorous debate about the design of healthcare systems and the role of government in healthcare. An important goal in the reform ofhealth care financing is reducing the rate of growth ofhealth expenditures. Health expenditures are increasing much more quickly than our productivity or our income, with little evidence that we are receiving value commensurate with the rate of expenditure increase. As a result, rapidly rising health care expenditures lead to a decline in our standard of living. Further, since the elderly and the poor cannot afford to pay for their health care, rapidly rising expenditures require increasingly large transfers of income across generations and income groups. This strains federal and state budgets. In the absence of tax increases the consequence is increased deficits and/or decreased government spending in areas other than health care. The rise in cost is mainly due to several factors like promotion and advertising, research and development and regulation imposed by the government. Although these factors contributed to the increase in cost, they are still nevertheless essential ingredients for the pharmaceutical industry to operate efficiently and for the benefit ofthe public consumers. A satisfactory solution for healthcare cost containment is imperative especially to the developing countries. However, it is important for one to realize that no single solution is applicable to all countries. This is because each countries have their own government policies towards healthcare cost containment and their own unique economic characteristics. The world should expect to see increased reliance on market solutions and moves towards multi-tiered health systems that differentiate healthcare provisions made for different groups in society.