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Cost and Quality Analysis

Roles and major activities in addressing cost and quality in health care U.S. Department of Health and Human Services – public
In order to address cost and quality in health care, the U.S. Department of Health and Human Services has come up with several initiatives. First, the organization uses employer contribution technique, whereby premium costs that were contributed by the employers were reduced by an average of $480 for the employers that made a fixed dollar contribution and granted their employees at least three plans, without considering the plan chosen. As a result, this scheme improves quality and at the same time minimises cost as opposed to having a fixed dollar contribution and granting only two plans (The U.S. Department of Health and Human Services, 2013).
The other initiative is the adoption of health maintenance organizations (HMOs) and competition. HMOs are very useful in reducing costs in highly competitive markets by through practice of hospital visits instead of ambulatory. For example, the competition between HMOs in a competitive market leads to lowering of premiums while at the same time forcing individual HMOs to maintain high quality in their services so they can remain competitive. In addition, State mental health parity mandate and managed care is a good strategy for addressing quality and cost in healthcare. The introduction of a managed behavioural health care plan by an insurer has led to a 39 percent reduction in mental and substance abuse costs.
The Commonwealth Fund -private
The commonwealth sponsored its first health care quality program in 2000, which has supported crucial research on the shortcomings and causes in health care delivery, while at the same time emphasizing on the importance of inventive interventions to improve health care information technology infrastructure, as well as reducing patience safety and hospital readmissions. By identifying keys and trends to success, this initiative is contributing towards the understanding of joint care models referred to as accountable care organizations (The Common wealth Fund, 2012).
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