Medical Arms Race Literature Review

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Medical Arms Race – A Review

Indubitably, the contemporary medicinal care has become progressively reliant on the use of the latest technology, and the newer health devices are the designated quintessence of that trend. A modern healthcare facility is a utopia of complex equipment, rationalized care, and easy accessibility of the finest physicians. Before the rise of the managed care in the 80s, the competition amongst the hospitals was limited to the availability of the finest medical technology and the association of the local physicians to that particular health facility. The high cost of care was supported by the open-ended reimbursement of the insurance system at that time and the rivalry amongst the hospitals was in regard to the provision of sophisticated medical amenities. However, with the emergence of managed care, the concept of medical arms race is not feasible in the current time zone. The
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A new medical arms race will result into an intensification of clinic costs and aggregate healthcare expenditures. The reason behind an increase in the cost is the inpatient service duplication and the supply prompted demand. It may generate monetary and service inequalities amid the community hospitals, outpatient clinics, and specialized care hospitals. For example, a specialty hospital that focuses on cardiology would provide excellent service and yield a higher market share in comparison to a local community hospital that provides a broad-spectrum of healthcare services. Furthermore, the amplified rivalry for the acquisition of general practitioners and patients will result into enhanced volume of patients which may affect the quality of the care. From the perspective of the consumers, an increase in medical arms race will result in higher costs and could subsequently result into under-utilization of the services if not fully reimbursed by the insurance

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