Telecommunication & Telemedicine Health care spending in the US is twice as much as other industrialized nations
The US health expenditures approximated $2.6 trillion in 2010
US citizens do not reap the benefit of increased spending
The US is the worlds leader in producing and consuming medical technology Define the Problem Although the United States holds more Nobel Prizes in medicine and economics than any other country, our health care system is less efficient, in terms of health per dollar spent, than those of other high-income countries Health telematics is a composite term for health-related activities, services and systems, carried out over a distance by means of information and communications technologies, for the purposes of global health promotion, disease control and health care, as well as education, management, and research for health.
Universal terms telemedicine telehealth e-Health
Health telematics Telegraphy dates back to 1753
The 1 st electric telegraph was developed in the 1830s
Samuel Morse unveiled the 1 st one-wire telegraphic system in 1987
Telegraphy has allowed for numerous advancements in healthcare, furthermore it has established the foundation for telemedicine History of Telemedicine NASAs Project Mercury crew was monitored via telemetry
Jay H. Sanders established the first statewide telemedicine system Recognized as the Father of Telemedicine
Kenneth Bird introduced the term telemedicine and defined it as healing from a distance History of Telemedicine Airline Deregulation Act of 1978 deemed to be a controversial act many believe airline passengers have saved an annual $19.4 billion others believe this caused thousands to lose their jobs
Telecommunication Act 1996 estimated to save customers $550 billion estimated to increase job market with 1.5 million jobs However, it decreased the economy by $2 trillion
The History of Deregulation Provides reimbursement when telecommunication technology is used for services including: office visits, individual psychotherapy, and pharmacological management Kansas Medicaid Mixed and dissimilar opinions regarding this bill Optimistic Increased concern
eliminates regulation provided by the Kansas Corporation Commission Kansas State Legislature enacted the House Bill No. 2201 State legislatures give public utility commissions the authority to develop and enforce rules about the way in which telecommunications companies behave, including whether they must file retail- pricing information with the commission (tariffs), whether they must meet certain quality-of-service standards, whether they must provide basic service to operate as carriers of last resort, and whether they are eligible for high-cost or Lifeline support. Alternative #1 make NO changes to the HB 2201 Alternative #2 ABOLISH the HB 2201 completely ABOLISHING may prevent the free-market from deserting the average customer keeping will promote advancement in technology (especially telemedicine) Alternative #3 REVISE the HB 2201 Complete deregulation may jeopardize customer safety Complete regulation may limit competitive prices
Construct the Alternatives Bardach (2012) affirms an absence of efficiency consideration for policy decisions frequently overlooks the welfare of the little guy.
He then states, The little guy may be little, but in a proper efficiency analysis, he at least shows up to be counted (Bardach, 2013, p. 33). Select the Criteria Vilfredo Federico Damaso Pareto An early 20 th century Italian economist and sociologist He studied economic efficiency
Pareto efficiency says that an allocation is efficient if an action makes some individual better off and no individual worse off Select the Criteria The need for increased health care technology, telecommunications, and telemedicine create a dual-sided argument when examining the efficiency of this matter.
Many individuals view health care innovation as a major contributor to the USs increased health care cost. However, these advancements may also be perceived as the best hope to effectively meet daunting cost and quality challenges Kansass telecommunication deregulation bill may allow these firms to abandon the less profitable rural customer, or what Bardach (2012) defines as the little guy.
Deregulation of telecommunication may discontinue service delivery in the hard-to-reach geographical locations.
If their services are not discontinued, telecommunication companies could potentially mitigate landline availability, or significantly increase prices in rural areas due to supply and demand. Select the Criteria Option #1Keep the bill improve access to care for the rural community (via telemedicine) pose threats to the rural and elderly population Option #2Get rid of the bill telecommunications companies will not be responsible for maintaining services that offer safety standards Option #3Simple revision create an equal balance between regulation and deregulation Project the Outcomes
In order to have credibility when removing unnecessary or outmoded regulations, those of us who adhere to a market-based philosophy must be willing to acknowledge an important fact: There are times when regulators may need to step inwhen the marketplace does not allow for sufficient competition to a former monopoly, when the market needs to be open to new entrants and technologies, or when larger societal goals such as ensuring the needs to public safety, fall outside the markets scope. Option #3 With option #1 The HB 2201 minimizes the Kansas Universal Fund, which will abolish extra funding for telecommunication services in rural areas. This bill may be inhumane to citizens of the rural community, in that telemedicine has been presented as an effort to improve access to care for the rural population . With option #2 Increase drawbacks and costs associated with complete regulation. regulators generally do not have the latest technological information, regulated firms may be able to use the regulatory setup to create barriers to entry, the regulatory setup is bureaucratic, there is significant rent-seeking activity, it is difficult to regulate new and evolving products. Confront the Trade-Offs With option #3 put in place the appropriate regulatory framework that achieves the twin goals of spurring investment and establishing open platforms to deliver choice and innovation to consumers Confront the Trade-Offs Decision After completing an extensive amount of research on telemedicine, I found telecommunication to be the foundation of this innovation. I believe revising the Kansas State Legislatures HB 2201 would be both beneficial for the market, and the consumer. Complete deregulation of telecommunication generates potential risks for the consumer. Conversely, rigorous government regulation will create a precarious environment for the provider. Balancing deregulation while focusing attention on the customers welfare appears to be the most acceptable alternative to the HB 2201.
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