Family medicine

The study find that the Health care is different from other goods and services: the health care product is ill-define, the outcome of care is uncertain; large segments of the industry are dominate by nonprofit providers; and payments are make by third parties such as the government and private insurers. Many of these factors are present in other industries as well; but in no other industry are they all present. It is the interaction of these factors that tends to make health care unique.

The health care product

Even so, it is easy to make too much of the distinctiveness of the health care industry. Various players in the industry consumers and providers; to name two respond to incentives just as in other industries. health care organizations lost nearly $454 million due to clinical drug diversion in 2018; according to the 2019 Drug Diversion Digest, released by Protenus Inc.

The health care compliance analytics firm Protenus analyzed 324 diversion incidents report in online news stories in 2018. Drug diversion was define as “the transfer of a controlled substance from a lawful to an unlawful channel of distribution or use.” Incidents varied by stage of resolution and included U.S. health care workers who had been discovered, reported, arrested, charged, or sentenced for diversion incidents. Key insights were gleaned retrospectively from the aggregated dataset.

The analysis showed that more than one-third of reported incidents took place in a hospital or medical center setting. Specifically; 45% of publicly reported incidents occurred within practice and pharmacy settings. Just under one-third of reported diversion incidents (29%) involved physician practices, while long-term care facilities accounted for 18% of incidents.

Medical center setting

Doctors accounted for 37% of publicly disclosed diversion incidents (compared with 26% in 2017); while nurses were responsible for 30% (compare with 41% in 2017). Per capita, West Virginia had the most public diversion events. Based on 87 incidents; organizations lost 47.2 million pills or dosages to diversion incidents, with an average monetary amount loss to the organization of $16.2 million worth of prescription drugs (based on 29 incidents).

“With this information, health care organizations can better protect members of their workforce who might be vulnerable to drug abuse and keep patients safe from potential harms associated with diversion,” the authors write. The key effect of health insurance is to lower the out-of-pocket price of health services.

Potential harms associated

Consumers purchase goods and services up to the point where the marginal benefit of the item is just equal to the value of the resources given up. In the absence of insurance a consumer may pay sixty dollars for a physician visit. With insurance the consumer is responsible for paying only a small portion of the bill, perhaps only a ten-dollar copay.