Medical Care Reform

Medical care reform together will all the provisions are forcing hospitals to find novel ways to boost facility efficiency, streamline their costs, and manage care in a better way. Hospitals need renovation to minimize operating expenses. This is also good news for hospitals because they are shunning the fee-for-service model for value-based models of medical care. Previously, hospitals had to perform more if they were to make more money. This is changing because hospitals account for their patients and their wellbeing. In essence, the medical care facilities will be allocated more money than before.

According to Marmor (2004), the effect of the recent medical care reform has prompted a number of changes besides bringing in new opportunities for employers. The concern of employers will increase with the rise in the costs of medical care and the risk of attracting the excise tax in the new future, most see subsidized benefits of medical care as a critical part of their worker value proposition. Most if not all employers commits to sponsoring the benefits that come with medical care reform. Though they plan to maintain their medical plans for a few years, they will expect private exchanges to act as a likely delivery channel. Such an arrangement will enable them to uphold their roles as sponsors, yet outsource several aspects of plan management.

The medical care landscape is undergoing several changes because of reform in the health sector, rise in costs, as well as the advent of health benefit exchanges. The existence of confirmed exchange solutions for retirees eligible for Medicare means that the number of employers who may cut their sponsorship plan for retirees above the age of 65 will augment in the coming years. Nonetheless, part-time employees with experience fewer change. Few employers are planning for changes in their design or total rewards mix for part-time workers. Essentially, there would be increase on part-time worker who would look for coverage via public exchanges.

The downside of medical care reform, however, has everything to do with administrative costs. Many hospitals and other health systems will survive on their own as they provide care to new patients. This calls for more paper work, care and disease management, and time to deal with medical care for the newly insured patients. Providing a wider coverage of medical care to more people comes with challenges.

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