The UCS can help stem the inherent inflationary tendencies of the health sector
in at least four ways. First, the NHSO, as a single purchaser acting on behalf of 47
million members, has huge financial power and proven capacities to increase
value for money and regulate the provider market, which can help to control
costs.
Second, continuing with the UCS closed-end payment mechanisms of
capitation for outpatient care and DRGs under a global budget for inpatient
care will help to limit incentives from the provider side to choose branded over
generic medicines or to generate excessive prescriptions, diagnostic procedures
and treatment interventions.
Third, the UCS mechanisms that critically assess all new interventions and drugs
based on evidence of cost effectiveness, long-term budget impact and other
ethical concerns prior to inclusion in the benefits package make a significant contribution
to reining in technological inflation, physician pressure for unwarranted
adoption of new technologies and growing consumer expectations. Effective
performance of these mechanisms is dependent on institutionalizing capacity
for health technology assessment in HITAP and IHPP and developing other tools
such as certificates of need for investment in major medical devices
The UCS can help stem the inherent inflationary tendencies of the health sector
in at least four ways. First, the NHSO, as a single purchaser acting on behalf of 47
million members, has huge financial power and proven capacities to increase
value for money and regulate the provider market, which can help to control
costs.
Second, continuing with the UCS closed-end payment mechanisms of
capitation for outpatient care and DRGs under a global budget for inpatient
care will help to limit incentives from the provider side to choose branded over
generic medicines or to generate excessive prescriptions, diagnostic procedures
and treatment interventions.
Third, the UCS mechanisms that critically assess all new interventions and drugs
based on evidence of cost effectiveness, long-term budget impact and other
ethical concerns prior to inclusion in the benefits package make a significant contribution
to reining in technological inflation, physician pressure for unwarranted
adoption of new technologies and growing consumer expectations. Effective
performance of these mechanisms is dependent on institutionalizing capacity
for health technology assessment in HITAP and IHPP and developing other tools
such as certificates of need for investment in major medical devices
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