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Corporatization in Health Care. Dr. Nur Azid Mahardinata Dr. Mubasysyir Hasan Basri , MPH. Trend towards privatization of human services in 1980s Influence of ideas about market efficiency Government reluctance to meet costs of rising demand Private sector lobbying focused on
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Corporatization in Health Care Dr. NurAzidMahardinata Dr. MubasysyirHasanBasri, MPH
Trend towards privatization of human services in 1980s • Influence of ideas about market efficiency • Government reluctance to meet costs of rising demand • Private sector lobbying focused on • Equity for users • “Level playing field” Privatization leads to Corporatization
Key Terms Privatization - The transfer of responsibility for services or activities from government agencies to private providers.
Background Corporate Medicine Socialist Medicine
Corporatization of Health Care The transformation of physicians from independent practitioners to corporate employees ``Corporate practice of medicine"
The Advantages ofCorporatization in Health Care • Competition • Higher incentives, and • Professional standards control systems
Competition Privatization or corporatization can result in greater efficiency and lower cost if and only if the privatized or corporatized entity is faced with competitive pressures
Higher Income • Corporatization will result in greater income for the healthcare provider due to the collaboration between all elements in the system, including physician, pharmacist, hospital management, and others
First: Paternalistic • Physicians work under voluntarily basis. • Physicians help the sick for humanitarian reason. • No exchanges • Patients are passive recipients. • Patients have no rights to complaint.
Second: Professional • Physicians professionalize. • Exchanges between patients and physicians • Society problems: • Some patients have no money to pay for medical services • Physicians are political for their own interest – service is really money.
Third: Financial • Third party represents patients in dealing with doctors. • Physicians are controlled by third party for potential abuse of patients money when “buying” services (physician tends to act politically)
Fourth: Workers • Physician work as workers/employee • Binds to governmental arrangement • Standard of payment were determined by the government Government
Physicians’ Income Pasca-Bayar Pra-Bayar • Capitation • Salary • Fee for service • Out of pocket • etc • Pharmaceutical industry • Apotek • Fellow Doctor
Problems in Corporatization of Health Care • It will put physicians and hospitals against one another • << protection of public interest Therefore, we need a strong ethical encouragement on the healthcare business ethics to avoid the negative effects of corporatization of health care
Three Perspectives to Evaluate the Ethical Status of Medical and Public Health Practices