Cost Containment Health Care Definition

Individuals must meet certain income and other requirements to obtain services.

Cost containment health care definition. Because bdhmi assumed the responsibility for the management servicing and administration of black decker s health plan considered and proposed numerous health care cost containment strategies and maintained salaried employees the transaction had very real economic implications for participants in black decker s health plan and should not be treated as a sham transaction. Arizona health care cost containment system ahcccs is arizona s medicaid agency that offers health care programs to serve arizona residents. Society s preferences and not just economics have an important impact on choosing the appropriate amount of care. This brief reviews the evidence on how key aca provisions have affected the growth of health care costs.

Before we discuss cost containment strategies with respect to healthcare we need to understand what cost containment is. This creates the challenge of how to curb health care spending while continuing to enjoy the improvements in quality and quantity of life that result from innovation in medical care. A report by the state health care cost containment commission this report released january 2014 analyzes the forces driving rising healthcare costs in the united states potential state responses to these issues and outlines seven recommendations to contain healthcare costs. The miller center.

This document investigates cost containment as a policy issue in an effort to answer the question of what the right amount is that countries should spend on health care. Cost containment is the business practice of maintaining expense levels to prevent unnecessary spending or thoughtfully reducing expenses to improve profitability without risking long term damage to the company. Cracking the code on health care costs. Definition of cost containment.

The process of controlling the expenses required to operate an organization or perform a project within pre planned budgetary constraints. The cost containment process is an important management function that helps keep costs down to only necessary and intended expenses in order to satisfy financial targets. This paper explores the economics literature on cost containment and health care innovation with most of the focus on pharmaceutical innovation. Health cost containment and efficiency strategies strategy cost containment strategy and logic target of cost containment evidence of effect on costs 1.

Administrative simplification in the health system streamlining administra tive functions in the current health system e g standard ized forms and processes streamlined claims processing.