The Different Reimbursement Methods In Health Care

Reimbursement methods in health care refer to the capability of an individual to acquire compensation for out-of-pocket medical expenses paid by them from their insurance companies. In addition, reimbursement involves more than just what an individual gets paid since it is a long and frequently convoluted process (Quinn, 2015). The Value-based care (VBC) reimbursement models that replace the traditional fee-for-service (FFS) model, greatly affect the healthcare industry by increasing the costs and most importantly, the insured individuals put stress on their providers to supply quality care with greater efficiency (Quinn, 2015). The different reimbursement methods also help health care providers settle upfront productivity loss and investment costs. The different reimbursement reform acts increase the market competition.
Economic Factors
One of the major influences is the fact that economic status changes the demand for health care including the financial status of health organizations and health care providers. According to Taube (2016), economic factors make healthcare costs increase faster than the Gross Domestic Product (GDP) which makes the health care system increasingly expensive. Consequently, it makes it unfairly unreasonable; fees for drugs and services are also increasing inconsistently (Taube, 2016). Because of the cost of health care services surpassing the whole economic revival, more patients are unable to pay their medical bills which creates an adverse effect on the healthcare industry (Taube, 2016). Individuals need to have to health care but there is a shortage on funding, a shortage on staff, and this affects quality of health care given. With the unemployment rate at a high, this means there is also an increase in uninsured individuals resulting in affected health outcomes (Taube,