(a) factors that have contributed to dramatic growth in health care spending over the past 50 years; and (b) how health care payment and delivery models are transforming to promote greater accountability for cost and quality in the health care system. Please conclude your memo with your analysis of the most promising approaches for constraining cost growth while maintaining or improving quality, as well as the limitations or open questions that accompany new reimbursement and delivery models that are intended to promote “accountable care.”  The memo must be four pages in length. Please include references to course readings as well as any relevant outside sources that support your analysis. Citations and a references page (not included in page length) are required. **You must use a recognizable memorandum format for this exercise—and it is recommended that subject areas be segmented using sub headers.  Include your institution’s logo on the first page of the memo (fictitious).  Be creative.

[Your Institution’s Logo]

MEMORANDUM

The Board of Directors [Your Healthcare System]

From: [Your Name]. Chief Operating Officer

The factors that contribute to health care expenditure growth and the transformation of payment and delivery methods to encourage accountability

Date: [Current Date]

Introduction:

The Chief Operating Officer is responsible for the overall management of [Your Healthcare System]The Chief Executive Officer has asked me to give a presentation to the Board of Directors about the factors which have led to the dramatic increase in spending on health care over the last 50 years and the changes in payment and delivery systems in order to improve accountability in terms of cost and quality. In this memo, I will analyze the most promising approaches for constraining cost growth while maintaining or improving quality, as well as the limitations or open questions that accompany new reimbursement and delivery models that are intended to promote “accountable care.”

Health Care Spending:

The rise in the health-care spending of the past fifty years can be traced to several causes, such as:

1. Technology advances: New medical technology such as MRI machines and advanced surgery, along with new pharmaceuticals, has increased the cost of health care.
2. Population aging: As life expectancy increases, the population ages. This leads to an increased demand for medical services.
3. Chronic diseases are on the rise: Diabetes, cancer, and heart diseases have all become more common, which requires ongoing management and treatment.
4. Costs of administration: Administrative costs incurred by health care providers have contributed to the increase in spending on health care.

Changes in Payment and Delivery models to promote Accountability

In order to improve accountability and transparency in health care, there are new models of payment and delivery being developed. The models are:

1. Value-based healthcare: The model emphasizes high-quality health care that is cost-effective. The providers are held responsible for their quality of care and incentivised to improve outcomes.
2. Accountable care organizations (ACOs). ACOs are groups consisting of healthcare providers who work in concert to coordinate patient care. These organizations are recognized for their ability to improve patient outcomes, while also reducing cost.
3. Bundled payment: A fixed amount is paid to providers for an episode of healthcare, like a hip surgery. The providers are encouraged to collaborate to deliver high-quality healthcare at lower costs.

The Best Ways to Control Cost Growth and Maintain or Improve Quality

These are the best ways to reduce costs while improving quality and maintaining cost.

1. Improved care coordination: Patients can benefit from more effective and efficient care by improving the coordination of care between healthcare providers. This will lead to lower health costs and better outcomes.
2. Reducing Administrative Costs: Health care organizations that reduce administrative costs can better allocate resources for patient care. This will lead to improved health outcomes as well as lower costs.
3. Implementing Technology: The use of technology can improve the coordination of care, reduce mistakes, and improve outcomes for patients. It includes electronic health records and telemedicine.

Limitations and Open Questions

Despite the promising approaches mentioned above, there are still limitations and open questions that accompany new reimbursement and delivery models that are intended to promote “accountable care.” These include:

1. Access to Care: It is not only important to reduce costs, but also to make sure that the patients receive all of the necessary care.
2. Cost reduction should never come at the cost of quality care. It is important to ensure that the quality of care does not suffer when cost-savings measures are taken.
3. Sustainability: Although these models can lead to cost-savings in the short term, they must be sustainable over time.

Conclusion:

Final words