Health Care Industry Overview: Growth, Policy, and Patient Safety
Health Care Industry: Key Points
- Guest speaker session planned next week with two speakers from CMA and CNA; scheduling depends on their time, will cover health care industry and your role.
- Objectives: list four benefits of working in health care.
- Health care employs about 10\% of all American workers.
- Job opportunities in health care are excellent now and in the future; health care is one of the fastest growing sectors in the US economy.
- Health care offers diverse employment opportunities and pathways to advance through earned advanced degrees and digital professional certifications; opportunities to move up in original discipline or branch of knowledge; transferable skills that can train in a different discipline; ability to advance into leadership, teaching, sales, or research jobs.
- Working in health care offers the opportunity to improve the quality of people’s lives; people seek health care during vulnerable times; your skills enhance relationships, job performance, and career prospects.
- Distinctive qualities include patterns of behavior and attitudes; soft skills relate more to who you are than what you know; employers screen, hire, pay, and promote for soft skills.
- Soft skills are part of personality and harder to acquire/change; there are many occupations in health care; this book emphasizes soft skills needed for success in health care (working with patients, customer service, professionalism, personal life, practical experience, employment, and career advancement).
- To be viewed as a health care professional, be aware of industry trends: population trends and the additional services people need; primary care doctors act as gatekeepers who monitor actions and control access to services.
- Efforts to control rising costs include:
- Encouraging preventative services to avoid contracting conditions.
- Providing care in the least expensive setting.
- Avoiding unnecessary tests and treatments.
- Coordinating services among providers to ensure continuity of care.
- Accessibility issues: Millions of Americans lack health insurance or a primary care doctor; patients may go without medical care, prescriptions, or prenatal care.
- Access impact examples: prenatal care and preventative services are essential for pregnant patients; concerns arise about being unable to pay medical bills and the resulting write-offs by providers, which can raise costs for insured patients.
- Rural and underserved urban areas face lack of doctors and facilities, limiting access; many doctors prefer urban areas, complicating recruitment in rural regions.
- Demographics: the older population is growing rapidly due to aging baby boomers; 78\,000\,000 people born 1946–1964; the 65+ population will almost double in coming years; the first baby boomer reached age 64 in 2010; it will take about 21 more years for the last one to reach a similar milestone.
- Economic and spending patterns: minorities possess 75\% of the nation’s disposable income; 70\% of baby boomers subscribe to complementary or alternative medicine; they are projected to live longer than predecessors.
- End-of-life care: more than 25\% of total health care spending for each patient occurs in the final years of life.
- By 2030, 0.4 (four out of ten) adult visits to the doctor will be by baby boomers.
- Health care reform and the Affordable Care Act (ACA): patient protection and Affordable Care Act; ACA passed in Feb 2010; goals include expanding access to affordable quality health insurance and reducing rising costs; restrictions on insurer practices (cancellation of policies, preexisting conditions).
- ACA essentials (illustrative list from transcript):
- All qualified plans must offer the ACA’s ten potential medical benefits; includes annual checkups, immunizations, preventive testing, and no out-of-pocket expense.
- Prohibits charging more based on gender or health status.
- Prohibits plans with annual or lifetime dollar limits on benefits.
- Individual mandate; allows parents to keep children on their health insurance until age 26.
- Medicare vs Medicaid: Medicare is for people aged 65+; Medicaid is state-based for low income; Medicare coverage nuances: anecdote from clinic noted Medicare often pays for yearly exams only every two years (example from practice); TeenCare (teen health coverage) may extend to age 21 if still in school.
- Patient-centered medical homes: organizations that provide comprehensive, coordinated care to patients who are members.
- Accountable Care Organizations (ACOs): networks of providers that work together and share responsibility for a large group of patients.
- Quality improvement approach: PDSA cycle (Plan-Do-Study-Act)
- Plan: creating a plan or test to see how a different approach would work.
- Do: implementing the plan and seeing what happens.
- Study: reviewing results to determine what was learned.
- Act: taking action based on what was learned.
- Understanding the current situation: compare statistics with outcome data after a change to examine impact and results.
- Quality improvement and staffing: adequate staffing is tied to quality and patient safety; cutbacks can lead to more falls, bed errors, and wrong tests.
- Lean Sigma: combines Lean and Six Sigma; Lean aims to streamline processes, reduce waste, and increase speed; Six Sigma reduces variation and defects to improve quality and reduce costs; about half of health care organizations have Lean Sigma projects.
- Patient safety: the third leading cause of death in the US is preventable medical mistakes; culture should encourage nurses and health care workers to speak up when they see mistakes; caregivers must feel empowered (given authority, enablement, or commitment) to put patient interests first.
- Terminology: a centennial event is a preventable incident involving death or serious injury; patient safety goals include: identify patients correctly; improve staff communication; use medicines safely; use alarms safely; prevent infections; identify patient safety risks; prevent surgical mistakes.
- Medication safety basics (the five rights): five rights of giving medicines are discussed; explicitly mentions the Rights: Right patient, Right dose; reference to age considerations as well.
- Workforce projections and practice changes:
- In a given clinic, three more doctors joined the staff along with three medical assistants, and five new advanced practice providers joined.
- Practice hours were expanded to accommodate increased patient load.
- Emphasis on patient–provider interaction and ongoing learning; someone named Perfection’s interaction with health care providers; started a blog to share best practices with colleagues in other states.
- Education and career development example: Carla completed prerequisites at a local community college and decided to pursue a BS degree in health care management and supervision; she attended workshops to advance.
- Summary implication: with ongoing changes, the health care industry requires awareness of trends, continual skills development, and engagement with policy, quality, and technology to deliver effective patient care.
Key Concepts and Terminology
- Primary care doctors as gatekeepers; monitoring and access control role.
- Preventative care as cost-containment strategy.
- Health care workforce categories: clinicians (doctors, nurses, allied health), IT professionals (EMR/EHR), administrators, researchers.
- Soft skills vs hard skills:
- Soft skills: communication, empathy, professionalism, teamwork, adaptability; harder to teach, essential for patient-centered care.
- Hard skills: technical competencies, hands-on clinical skills, procedures, data entry, medical knowledge.
- Population health concepts:
- Aging population and demand for services.
- Disparities in access to care between urban and rural areas.
- Health policy concepts:
- ACA provisions and intended impacts on access and affordability.
- Essential health benefits and protections against discriminatory practices.
- Quality improvement methodologies:
- PDSA: Plan-Do-Study-Act cycle for testing changes.
- Lean Sigma: process optimization and defect reduction.
- Patient safety framework:
- National Patient Safety Goals: patient identification, communication, safe medication practices, alarm safety, infection prevention, risk identification, and surgical safety.
- Health information technology:
- EMR vs EHR; data sharing; interoperability challenges; penalties for non-use of electronic records; advantages include up-to-date patient information and accessibility across settings.
- End-of-life care and cost drivers:
- End-of-life spending and its impact on overall health care costs.
- Projections of spending and visit patterns by baby boomers.
- Career development paths:
- Advanced degrees, professional certifications, and transferable skills enabling movement across disciplines.
- Role of additional training: workshops and degree programs in health care management and supervision.
Demographics, Access, and Costs
- Baby boomer demographics:
- Birth cohort: 1946\text{–}1964; 78\,000\,000 people; aging will increase demand for health care services.
- The 65+ population is expected to almost double in coming years.
- First baby boomer reached age 64 in 2010; last will reach 65 in about 2031 (approx. 21 years from 2010).
- Minority economics:
- Minorities possess 75\% of disposable income; baby boomers show significant engagement with complementary/alternative medicine (approximately 70\%).
- Health care spending patterns:
- More than 25\% of total health care spending occurs in the final years of life.
- Insurance coverage landscape:
- Millions lack health insurance or a primary care doctor, leading to delayed or foregone care.
- Access disparities:
- Rural shortages and unattractive urban areas contribute to insufficient labor supply in some regions.
- ACA goals and provisions (overview):
- Expand access to affordable, quality health insurance; reduce rising costs.
- Prohibit insurers from canceling policies or denying coverage for preexisting conditions.
- Require plans to cover essential benefits and limit cost-sharing for preventive services.
- ACA essential benefits (illustrative):
- Annual checkups, immunizations, preventive testing; no out-of-pocket expense for these services.
- Prohibitions on gender- and health-status-based premium adjustments; no annual or lifetime limits.
- Individual mandate; dependent coverage up to age 26.
- Medicare and Medicaid overview:
- Medicare: federally funded program for people 65 and older.
- Medicaid: state-based program for low-income individuals.
- Anecdote: some Medicare-covered services may have frequency limitations (e.g., annual exams every two years in certain clinics).
- TeenCare concept:
- Eligibility extended up to age 21 if a student.
- Health care delivery reforms:
- Patient-centered medical homes delivering coordinated care.
- Accountable Care Organizations (ACOs) as networks sharing accountability for a large patient population.
Quality Improvement, Safety, and Care Delivery
- PDSA framework details:
- Plan: devise a plan or test to try a different approach.
- Do: implement the plan and observe results.
- Study: review outcomes to determine what was learned.
- Act: take action based on what was learned to improve.
- Current state assessment:
- Compare statistics with outcome data after changes to evaluate impact.
- Staffing and quality link:
- Inadequate staffing can lead to poorer quality of care: more patient falls, bed errors, and incorrect tests.
- Lean Sigma in health care:
- Lean: streamline processes, reduce waste, increase speed.
- Six Sigma: reduce variation and defects to improve quality and reduce costs.
- Adoption: approximately half of health care organizations have Lean Sigma projects.
- Patient safety goals and culture:
- The third leading cause of death in the US is preventable medical mistakes.
- Empower health care workers to speak up about errors; align culture to prioritize patient safety.
- Goals include: identify patients correctly; improve staff communication; use medications safely; use alarms safely; prevent infection; identify patient safety risks; prevent surgical errors.
- Medication safety basics (five rights):
- Five rights discussed: Right patient; Right dose; (implied others); contextual note mentions age considerations in practice.
- Health information technology (IT) workforce trends:
- IT employment in health care expected to rise by 20\% by the year 2000 (as cited in transcript);
- Use of electronic health records (EHRs) and electronic medical records (EMRs) in hospitals, clinics, and physician offices;
- EMRs are commonly used locally; EHRs enable broader data sharing across providers and settings to improve access to up-to-date patient information; some systems may interact poorly due to lack of universal interoperability.
- Benefits and challenges of EHRs/EMRs:
- Benefits: immediate access to comprehensive, up-to-date patient information; better coordination of care.
- Disadvantages: system incompatibility; lack of universal EHR; interoperability issues.
- Patient engagement and empowerment:
- Patients must become more directly involved in their health and care; redesigning the death and dying experience for Americans.
- Personal and professional identity in health care:
- You wear at least three hats as a patient, a taxpayer, and a health care professional; each hat changes perspective.
Case Examples and Personal Trajectories
- Practice expansion example:
- Three more doctors joined the staff; three medical assistants; five new advanced practice providers joined.
- Practice hours expanded to accommodate increased patient load.
- Enhanced patient interactions with providers; one professional started a blog to share best practices with colleagues in other states.
- Education and career development example:
- Carla completed prerequisite coursework at a local community college and pursued a BS degree in health care management and supervision.
- She took advantage of workshops to develop professionally.
Practical Implications for Exam and Real World
- Understand how demographic shifts influence demand for health care services and policy responses.
- Recognize how policy, technology, and quality improvement intersect to shape daily practice and patient outcomes.
- Be aware of the balance between cost containment, access to care, and quality of care in a complex health system.
- Appreciate the importance of soft skills in addition to technical competencies for professional success in health care.
- Reflect on ethical considerations around access, affordability, end-of-life care, and the distribution of resources in a diverse population.
Connections to Foundational Principles
- Population health and prevention reduce long-term costs and improve outcomes.
- Interprofessional collaboration and communication are essential for safety and quality.
- Data-driven decision making (PDSA, Lean Sigma) enables continuous improvement and accountability.
- Patient autonomy and engagement are central to modern health care delivery.
- Policy and economics shape access, affordability, and the structure of health care systems.
Health Care Industry Overview
- Employs around 10\% of American workers; one of the fastest-growing sectors with diverse job opportunities and career advancement pathways.
- Benefits include improving lives and developing transferable soft skills (e.g., communication, professionalism) essential for employment.
Key Trends and Challenges
- Demographics: Rapidly aging baby boomer population (78\,000\,000 born 1946\text{–}1964) drives increased demand for services; minorities hold 75\% of disposable income.
- Costs: Efforts to control rising costs via preventative services, care in least expensive settings, and avoiding unnecessary treatments. Over 25\% of spending occurs in the final years of life.
- Access: Millions lack health insurance or primary care, leading to delayed care; rural and underserved urban areas face doctor shortages.
- Affordable Care Act (ACA): Passed in 2010 to expand access to affordable quality health insurance and reduce costs. Prohibits denying coverage for preexisting conditions and requires essential health benefits.
- Medicare vs. Medicaid: Medicare covers those aged 65+; Medicaid is state-based for low-income individuals. Anecdotes suggest frequency limitations (e.g., Medicare annual exams every two years in some clinics).
Care Delivery Models
- Patient-centered medical homes (PCMHs): Provide comprehensive, coordinated care.
- Accountable Care Organizations (ACOs): Networks of providers sharing responsibility for patient groups.
Quality Improvement and Safety
- Quality Improvement Approaches: Includes PDSA (Plan-Do-Study-Act) cycle for testing changes and Lean Sigma for streamlining processes, reducing waste, and minimizing defects.
- Patient Safety: Preventable medical mistakes are the third leading cause of death. Culture should empower staff to report errors. Goals include correct patient identification, improved communication, safe medication use, and preventing infections.
- Medication Safety: Adherence to the five rights (Right patient, Right dose, etc.) is crucial.
Technology and Workforce
- Health Information Technology (HIT): Growing field with the use of EMRs (local) and EHRs (broader data sharing), improving access to patient information but facing interoperability challenges.
- Workforce Projections: Practice expansion and increased staffing (doctors, MAs, advanced practice providers) are common, requiring ongoing learning and skill development.