Free Research Paper on Health Care Industry:
Analysis of impact of the external issue on health care industry
In our paper, we will examine the influence possible introduction of caps on medical malpractice suits would have on delivery of medical services in the country and its impact on health care organizations.
The probability of the event seems high as there are many people in the industry who are extremely dissatisfied with the current situation when any medical action that did not lead to the patient’s recovery can be disputed in court, leading to huge losses for the medical professional. Even though doctors’ salaries are high, they are in constant danger of losing a great chunk of it due to malpractice suits.
The probability is high as now President Bush has made this issue now one of the items on his second-term agenda. The bill still needs to get approval from Congress, which reduces the probability of the event, although it still retains high probability.
The approval of a legal act that imposes caps on compensations that can be obtained by patients who suffered from improper care in malpractice suits would have profound ramifications for the health care industry.
First, the removal of the danger of sky-high jury awards will enhance the safety of the medical profession. Doctors would feel more secure in their incomes, abandoning the fear that their efforts at getting an education will not meet with adequate remuneration. Besides giving doctors a sense of greater social and financial security, the caps would offer them a sense of greater freedom in their professional decisions. If now the doctor may have to base their decisions on the possible repercussions of these decisions on their careers, such as the potential danger of court trials, the caps would enhance the doctors’ motivation to use purely medical reasons for picking one or another treatment. This may contribute to better standards in health care. The threat of penalty for the use of improper treatment will not be removed as patients will anyway have the chance to sue doctors for malpractice, but the effects on the doctors’ well-being will be limited. This would help to improve the proficiency and motivation of the personnel that goes into the medical profession.
Besides, the costs that are now at least in part passed on to consumers will be saved now. At the moment, every person that uses medical care has to pay for the malpractice suit compensation that is pocketed by few people. The high costs affect the medical industry severely limiting access to advanced health care for individuals who are below the average life standards, and reining in the costs would have significant impact on the industry, spreading the costs among many people.
At the moment a few states are more attractive for doctors to operate in than others as they offer better terms for medical professionals, limiting caps on malpractice compensations. The imposition of caps would lead to greater equality among states, levelling the ground for all.
The imposition of caps would also lead to a reform in the insurance industry. States where award limits were established saw malpractice premiums surge. A closer look into insurance companies’ practices could transfer some of the costs now born by the patients and medical professionals to the insurers.
Thus, considering all of the above-mentioned, we can now place the event “imposition of caps on malpractice awards” on the Environmental Trends/Issues Plot. We believe that the event belongs to the quadrant where both impact and probability are high. The repercussions of such legislature would affect many areas concerning the delivery of health care services, such as costs carried by all participants in the industry, attractiveness of the medical profession, introduction of greater equality among states, and reforms in the insurance industry. The probability is also high, given presidential support for the issue.
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