Topic Explanation of the Topic Example One Example Two
Horizontal Equity Horizontal equity refers to an economic theory according to which individuals with similar income should pay similar taxes irrespective of the tax system thus helping create a neutral tax system. Physicians and all other medical professionals are liable to pay taxes, based on the amount that they earn, not based on profession, and this tax is equal to any other businessman or professional. Physicians and medical practitioners are required to pay professional tax, education taxes, development tax and all other taxes that any other professional pays.
Vertical Equity Vertical Equity is the concept or idea of fairness in economics, refers to equal life chances regardless of identity, to provide citizens with a basic equal minimum income, goods and services or to increase funds (Bird, 2009) As the income of a physician increases he is liable to pay higher tax in proportion to his income based on progressive taxation theory. In case of medical insurance based tax benefits all of the professionals are given the same maximum amount benefit limit, thus leading to medical professionals with higher income to get only a limited tax benefit and pay more tax.
Economic Efficiency Economic efficiency refers to the use of resources including capital, labor and even technology and assets in order to maximize the production of goods and services as well as its quality (Sullivan & Sheffrin, 2003). Computer Technology like telemedicine and electronic health records being used in the healthcare to improve efficiency, continuity of care, and better outcomes of health. Quality control and Total quality management are being used in the healthcare arena.
Managed Care Managed care refers to variety of techniques used in order to reduce the costs of health care and improve the quality of care for organizations that use those techniques or provide them as services to other organizations. Usage of techniques like Medicare that can help in strategic reduction in costs along with other forms of medical insurance (Lynch, 1992). Utilization of methods like cost reduction and economic optimization in medical industry leads to managed care. Formal utilization review and quality improvement programs and an emphasis on preventive care (Kongstvedt, 2001).
Topic of your choice Capitation refers to the payment arrangement in a health care top pay nurses and physicians based on per person allotted to them, per hour. Nurses and doctors are paid by salary, hourly and if in private practice are paid by the amount of patients they see after they pay their expenses. Professionals like psychiatrists and psychologist charge their professionals fees on per hour basis.
Topic Explanation of the Topic Example One Example Two
Horizontal Equity Horizontal equity refers to an economic theory according to which individuals with similar income should pay similar taxes irrespective of the tax system thus helping create a neutral tax system. Physicians and all other medical professionals are liable to pay taxes, based on the amount that they earn, not based on profession, and this tax is equal to any other businessman or professional. Physicians and medical practitioners are required to pay professional tax, education taxes, development tax and all other taxes that any other professional pays.
Vertical Equity Vertical Equity is the concept or idea of fairness in economics, refers to equal life chances regardless of identity, to provide citizens with a basic equal minimum income, goods and services or to increase funds (Bird, 2009) As the income of a physician increases he is liable to pay higher tax in proportion to his income based on progressive taxation theory. In case of medical insurance based tax benefits all of the professionals are given the same maximum amount benefit limit, thus leading to medical professionals with higher income to get only a limited tax benefit and pay more tax.
Economic