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Custom HealthCare Providers and Cost Containment essay paper sample

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In a nation and likewise a world face by reforms in various sectors more so the health sector as its has happened recently in the U.S, service providers, in this case health care provider are more likely to shift their practice in order to contain the costs incurred in the provision of medical care to patients. Traditionally, health care providers have always employed various strategies to help them contain the cost of Medicare, and with the current predicament they are likely to continue using the same strategies, develop new one or modify those they have used previously. In this regard this paper discus the way health care providers have addressed the issue of price control and how technology has served as a means of cost containment.

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A reduction number of services provided to the patients is one grate strategy that has been employed by health care provider to contain the ever rising cost of caring for patient. According to Bodenheim (2005) when a health care provider reduces the number of services offered to patient he or she is able to treat the patient without increasing the amount hat the patient has to pay. In this regard the health care provider is still able to provide quality service to the patient with increases expenses of cost for the service.

Another strategy that has been adopted by the players in the health care field to contain cost is the extension of the amount of time required by the patients to recover. Some physicians admit patient with less serious illness and extent the amount of time they spend in the hospital in order to increase the amount payable for the service provided to them.

Adoption of multiple insurers can also be very helpful to the insurer in the medical sector. In several countries such as Germany and Japan Insurers come together and negotiate with the government to come up with a proper price control or to set common rule for all payer methods to ensure that every payer pays their premiums. Such has also been witnessed in other countries where employers come together to form alliances for purposes of health insurance. Such alliances are commonly known as multiple employer welfare arrangements and considerable reduce the amount that every employer would have paid individual to the insurer. however as Reinhardt (2010) reports, these alliances however have a troublesome history and are somehow inferior compared to bill and regulation stipulated by the government.


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Technology is yet another agent of cost control that has been employed by medical care providers. technology such as information technology has be used by health care providers to minimize the costs and expenses incurred in the provision of medical care and also minimized the amount the customers or patients have to pay for medical series.

Technology has helped reduce the cost incurred in the Medicare by reducing the communication costs, transaction costs, simplifying the payment for service the through new improved payment methods and modernizing the administration of health care faculties. The savings on costs brought about by technology is enjoyed by different players across the healthcare arena. There are benefits enjoyed by the physicians, payers, hospitals, consumers, taxpayers and employers.  Technology has achieve so much saving and can still continue with same trend through deletion of old manual procedures, unnecessary paper work and outdated intermediaries; establishment of tighter compulsory transaction and information standards; facilitating computerized imbursement accuracy procedures across the healthcare arrangement; sophistications and consistence within the regulatory regime and provision of a single credentialing and value assurance process (United Health Group, 2009). 

In genera, cost containment ensures that all players in the Medicare arena benefit. The health care providers most employ the cost containment strategies to ensure that they minimize on their expenditure and maximize their profits. To this effect technology has proved to be a very effective strategy gaining popularity with most providers. However cost minimization should not be used to encourage provision of poor services, quality should never be compromised.

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