Reference no: EM133836320

Problem

During the 1970s and 1980s, U.S. healthcare policy shifted from expansion to cost containment as excessive healthcare facilities, physicians, and biomedical technology contributed to rising expenditures. Competing legislative proposals from Senator Kennedy and President Nixon sought to reform healthcare financing, yet neither gained congressional approval. To address escalating Medicare and Medicaid costs, Professional Standards Review Organizations (PSROs) were established in 1972 to monitor utilization and quality, while the Health Maintenance Organization (HMO) Act of 1973 introduced market-driven competition (Patel & Rushefsky, 2020). Mitchell (2024) states that the National Health Planning and Resource Development Act of 1974 further regulated healthcare expansion by requiring states to implement Certificate-of-Need (CON) laws, ensuring that hospitals justified major capital expenditures. President Carter's National Health Plan aimed to implement hospital cost-containment measures but faced significant opposition, resulting in voluntary industry efforts rather than mandated reforms (Patel & Rushefsky, 2020). These cost-containment efforts marked a shift from increasing healthcare access to implementing regulatory and market-based strategies to curb rising expenditures.

Cost containment resonates with me as a nurse because I have witnessed firsthand how financial constraints impact patient care, staffing ratios, and resource allocation in healthcare settings. The increasing cost of medical care places significant pressure on hospitals to optimize efficiency, often leading to understaffing, limited access to essential medical technologies, and reductions in patient services (Beauvais et al., 2023). Nurses frequently encounter challenges such as high patient-to-nurse ratios, which can compromise patient safety and quality outcomes, reinforcing the necessity of cost-effective healthcare strategies. Cost containment policies, when implemented effectively, can help balance financial sustainability with the delivery of high-quality patient care, ensuring that resources are allocated where they are most needed. As a healthcare professional, I recognize the importance of advocating for policies that reduce expenditures and promote patient-centered care and operational efficiency. A well-designed cost containment strategy can ultimately enhance both healthcare affordability and clinical outcomes, benefiting patients, providers, and the healthcare system as a whole. Get the instant assignment help.

Task

Review the above problem and explain why you agree with the author on the subject of cost containment. Provide in-text citation to support your answer.