Cost Containment Health Care Definition

Definition of cost containment.

Cost containment health care definition.

Although we have not returned to the double digit increases of the past the authors find little evidence that aca cost containment provisions produced. 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. 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. About the arizona health care cost containment system ahcccs founded in 1982 the arizonahealth care cost containment system written as ahcccs and pronounced access is arizona s medicaid program a federal health care program jointly funded by the federal and state governments for individuals and families who qualify based on income level.

Before we discuss cost containment strategies with respect to healthcare we need to understand what cost containment is. This paper explores the economics literature on cost containment and health care innovation with most of the focus on pharmaceutical innovation. The miller center. 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.

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. This brief reviews the evidence on how key aca provisions have affected the growth of health care costs. 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. 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.

Coverage expansions produced a predictable jump in health care spending amidst a slowdown that began a decade ago. Cracking the code on health care costs. Society s preferences and not just economics have an important impact on choosing the appropriate amount of care. Health cost containment and efficiency strategies strategy cost containment strategy and logic target of cost containment evidence of effect on costs 1.

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.