Healthcare Reform and Economic Implications Essay

Excerpt from Essay :

For example, prior to 2007, there were approximately 1 million confirmed cases of hospital-acquired ("nosocomial") infections in American hospitals and other healthcare institutions (clinics, nursing homes, etc.), resulting in the premature and preventable deaths of nearly 100,000 patients who would otherwise have survived the illnesses or surgeries for which they originally received treatment in those institutions (Reid, 2009).

Approaches to Reducing Healthcare Costs

Because the problem of treating those nosocomial infections alone was the source of an estimated $1 - $2 billion, the Centers for Medicare and Medicaid (CMS) terminated reimbursement for several kinds of urinary tract infections in healthcare institutions in 2007, to force healthcare providers to take the
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necessary steps to prevent those infections (Reid, 2007). Another important component to fighting healthcare costs are the oversight mechanisms, such as the Health and Human Services Inspector General's Audit Services and Medicare's recently enacted Recovery Audit Contractor (RAC) program. In between 2005 and 2008 alone, the RAC succeeded in recovering almost $1 billion in improper and overpayments to healthcare providers by encouraging and rewarding individuals to report any knowledge or suspicions in that regard (Reid, 200).

Ultimately, effective healthcare reform will require a broad approach in which resolving all of the inherent systemic problems within the largest government reimbursement programs is a necessary but insufficient component in and of itself (Kennedy, 2006; Reid, 2009).


Kennedy, E. (2006). America: Back on…

Sources Used in Documents:


Kennedy, E. (2006). America: Back on Track. Viking: New York.

Reid, T. (2009). The Healing of America: A Global Quest for Better, Cheaper, and Fairer Health Care. New York: Penguin Group.

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