Healthcare Systems and Policies - Slide 1 Quiz 1

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Vocabulary flashcards covering key terms, acts, and concepts from the lecture notes on US healthcare delivery and related legislation.

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109 Terms

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Health care system paradoxes (US)

Contradictory features: high standards and advanced tech with high spending, focus on treatment over prevention, and socioeconomic/racial disparities affecting outcomes.

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Licensure

Official authorization to practice a health profession, ensuring minimum standards.

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Certification

Credential indicating competence in a specialty or field.

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FDA (Food and Drug Administration)

U.S. agency responsible for testing, approving, and regulating drugs and medical devices.

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Health care expenditure

Total spending on health care in the United States, often expressed as a share of GDP or per capita.

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Per capita health expenditure

Health care spending divided by the population, i.e., spending per person.

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GDP share (health care)

Proportion of the gross domestic product spent on health care.

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Out-of-pocket expenditures

Costs paid directly by individuals at the point of care.

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Health care technology spending

Investment in medical technology and devices contributing to overall costs.

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Aging population

Demographic trend increasing demand for health care services.

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R&D investment in health care

Spending on research and development that drives new treatments and technologies.

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Health insurance coverage expansion

Growth in insured individuals due to policy changes, markets, or programs.

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Waste, fraud, and abuse

Inefficiencies and improper practices that raise overall health costs.

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Medical errors

Diagnostic errors, medication errors, and other mistakes that harm patients and increase costs.

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Health disparities

Socioeconomic and racial differences linked to variations in health outcomes.

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Health expenditure trends

Rising total expenditures, per-capita spending, and share of GDP over time.

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Price index for drugs

A measure of how drug prices change over time (e.g., 1–5% annually in the mid-1990s).

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Utilization in pharmacology

Growth in the use or consumption of prescription drugs.

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Hospital care spending

Share of total health care spending allocated to hospital services.

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Private health insurance (PHI)

Employer-sponsored or marketplace coverage; major source of financing for care.

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Medicare

Federal program for people aged 65+ (plus certain younger people); Parts A, B, and D cover hospital, medical, and prescription drugs.

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Medicaid

Joint federal-state program for low-income individuals, covering medical services; enrollment varies.

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Out-of-pocket share

Portion of total health care spending paid directly by individuals through OOP payments.

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Federal government share (spending sources)

Portion of health care spending funded by the federal government; Medicare often the largest contributor.

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State and local government share (spending sources)

Portion of health care spending funded by state and local governments (e.g., Medicaid payments).

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HMO Act (1973)

Legislation promoting Health Maintenance Organizations and managed care delivery models.

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CHIP (State Children’s Health Insurance Program)

Program (1997) providing health coverage and preventive care for uninsured children in eligible families.

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HIPAA (Health Insurance Portability and Accountability Act)

1996 law establishing privacy standards and protections for individuals’ health information; OCR enforces compliance.

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Affordable Care Act (ACA, 2010)

Law expanding health insurance coverage, creating exchanges, prohibiting denial for preexisting conditions, and mandating essential health benefits.

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Inflation Reduction Act (IRA, 2022)

Law to lower drug costs and expand Medicare negotiation, cap insulin costs, and regulate price increases.

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Non-interference clause (IRA context)

Provisions limiting federal interference in negotiations between drug manufacturers and payers; enables price negotiations for certain drugs.

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Flexner Report (1910)

Survey of US/Canadian medical schools; promoted scientific method and higher standards in medical education.

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Pharmacy education milestones

Origins of formal pharmacy education; 1922 APA Code of Ethics; 1932 minimum 4-year degree by AACP.

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Pharmaceutical care (definition)

Provision of drug therapy with the aim of achieving definite outcomes that improve quality of life (as per Hepler & Strand).

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Healthcare System of Few Other Countries
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Key Issue
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US is largest spender for healthcare, but compared to similar countries, performance of healthcare system in US is poor
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US spent 16.5% of GDP in 2023
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United Kingdom
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universal healthcare system after formation of National Health Services (NHS) in ‘48
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Services provided by NHS generally funded by taxpayers
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Out-of-pocket payment is very low in UK
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Gatekeeper to hospital care = general practitioners who provide primary care
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Services are free at the point of use
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Meds prescribed in NHS hospitals are free
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Outpatient rx drugs are subject to copayment
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NHS Trusts in UK
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Different trusts, which are distinct legal entities within the NHS
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Hospitals, clinics, transport etc
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Different types of trusts
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Primary care
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Acute trusts - look after hospitals that provide short term care
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Mental health trusts
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Ambulance trusts
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NICE in UK
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National Institute for Health and Care Excellence (NICE)
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Provides guidance on determining cost-effectiveness of new medications
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Technology Appraisals by NICE
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Conducts appraisals on new tech
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Evaluates clinical and cost effectiveness of health tech
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Meds, procedures, devices, etc.
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Decision carries legal mandate
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Appraisal committee includes reps from academia, manufacturers, NHS, patient and caregiver orgs, experts
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Tasks of NICE Technology Appraisal Committee
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Consider evidence
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Conclusions about cost effectiveness
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ICER : cost-effectiveness is determined by calculating Incremental Cost-Effectiveness Ratio
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Criticism against UK Healthcare System
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Long waiting time
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PHI for faster time
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Inadequate workforce - high burnout for providers and workers
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Lack of adequate investment
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Canadian Health System
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Has publicly funded, privately delivered healthcare system
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Has “Medicare”
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Access to universal, comprehensive coverage for hospital, physician services
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Services are administered and delivered by the provincial and territorial gov’ts
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Provincial and territorial health ins plans must meet five criteria
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Comprehensiveness
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Universality
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Portability
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Accessability
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Public administration
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Financing: federal and provincial taxation on personal income and corporate income
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Public sector provides the major source of funding
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Some portion of healthcare is funded by supplementary ins
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Some provinces use ancillary funding sources like sales tax
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Drug approval is under Canada’s Health Products and Food Branch (HPFB)
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HPFB administers a “special access program”
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Allows physicians to get access to drugs u/a in Canada
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Does not have any national formulary
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Rx meds are publicly funded by a collection of provincial drug plans
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Plans have established the pan-Canadian Pharmaceutical Alliance (pCPA) to negotiate prices, aided by health tech assessments by Canadian Agency for Drugs and Technologies in Health (CADTH)
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3 pharmacoeconomics methods
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CEA - cost-effectiveness analysis
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CUA - cost-utility analysis
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CBA - cost-benefit analysis
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Does not use any explicit cost-effectiveness threshold
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Australia
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Universal public health ins program (Medicare)