Running Head: Health Policy and Law Basics

Assignment 1: Health Policy and Law Basics

HSA405
October 29, 2014

Health Policy and Law Basics

Introduction
With the increasing demand of health services in the country, there is need to create more
health institutions. Ambulatory care centers play a big role in the healthcare sector. They can
provide not only a high quality service but also cost effective and comfortable experience for
patients and the health workers. In order to increase efficiency in service delivery, the buildings
should be designed in a way that supports efficient operations.
Perspective for designing the structure
Just like any other business, there are laws that govern the establishment of such
institution which must be followed. There are different perspectives that can be utilized in
designing the structure of the new ambulatory center. The choice of the perspective will
determine the success of the center and the law to be applied.

Health Policy and Law Basics

As the chief operating officer, the perspective to be utilized is the free market perspective.
The free market system is the best for the establishment of a new ambulatory center. With this
system, it implies that the prices for the services offered will be determined solely by the forces
of demand and supply and will be free from government intervention or any other authority.
Advantages
Establishing the center based on free market system will have advantages to both the
business owner and the consumers, who in this case, are the patients and public at large. One of
the advantages is that there will be a variety of services to be offered since the government is not
involved much in the business. The chief operating officer will be able to study the market and
see what it lacks and therefore design a center that will meet the needs of the people and this is
likely to make the institution get more profits.
The second advantage is that doctors and physicians will be able to set their own charges
depending on the services offered and not fixed charges from the government. A consumer or
patient for that matter will know the charges in advance and therefore giving them an opportunity
to choose (Cohn & Hough, 2008). This will attract more customers since the situation with
public institutions is that patients do not have opportunity to choose what they want or the
standard of services that should be offered to them.
Disadvantages
However, there also disadvantages associated with this. The first one is that a stiff
competition may arise leading to the lowering of prices of some services. Despite of lowering of

Health Policy and Law Basics

prices, employees will still need their full salaries and therefore, this can greatly impact the
operation of the center.
Another disadvantage is that, some members of the society may not be able to afford the
services offered. This may cause some members to oppose the construction of such an institution
around the area. Since the health sector in the United State is dominantly controlled by the
government, there may be resistance from the public and thus creating a stumbling towards its
establishment. The presence of Obamacare program for instance, may give the public an insight
to reject the construction of the center under free market system.
Examples of perspective in action
An example of free market system is the UK healthcare. According to Hogue (2009),
the cost of health care in the US as of 2009 was $6,000 while that of UK was $2,500 per
annum. This simply implies that having a social system of healthcare does not necessarily
mean a decrease in cost. In free market, people can choose what to consume based on what
they can afford and still get the best quality services.
Another example is that, in other free markets such as cosmetic medicine and Lasik
eye surgery, the services offered are great and prices keep on dropping, implying that free
market cannot be the cause of rice in prices, rather the insurance invites are the ones necessary
for the much costs of healthcare services (Contandriopoulos & Brouselle, 2010).
Effects of Components of Sources of Law on the New Center

Health Policy and Law Basics

As stated earlier, the law will also have an impact on the initiative of creating a new
ambulatory center. The three sources of law are common law, constitutional law and
administrative law. The key component of common law that will affect the organizations
initiative is the cost of services. The law ensures that consumers have access to quality and
affordable health services. It has provisions based on the number of employees that the
organization is likely to have.
On the other hand, the key components of administrative law include administrative and
financial transactions, health identifiers for individuals, privacy and security standards to protect
the health information of individuals. The Health Insurance Portability and Accountability Act of
1966 emphasizes on the confidentiality of individuals health information (Teitelbaum &
Wilensky, 2013). Failure to comply with this, the organization is likely to receive heavy civil and
criminal penalties. According to the US department of Justice, this crime can attract a ten years
imprisonment and a $250, 000 fine.
The constitutional law is the main of all the sources. The Supreme Court has provisions for
the establishment of any kind of business in the country. The key component of the constitutional
law is the issue of malpractice (Kessler, 2011). The law provides strict rules on doctors or service
providers malpractice. This is popularly known as the tort law. When the three conditions for a
tort law are met, that is; it is established that the defendant was under a legal duty, the defendant
breached his/her duty and lastly the plaintiff suffered injury as a result of this breach, then a
serious action will be taken. As such, the constitutional law will require that all the employees are
qualified. Financial obligations are another component of great interest. Before starting any
business, a feasibility study has to be done to ensure the organization meets all financial needs.

Health Policy and Law Basics

The acquisition of the plot to construct the center will also be evaluated to ensure it was acquired
legally and that the residents of that place are willing to have such institution.
In conclusion, health care policies are important in regulating service delivery in the
health care sector. Despite of its importance, there is still much to be done in this sector due to
the many problems currently facing this sector. The stakeholders need to observe law in their
duties to ensure smooth delivery of services to the public.

Health Policy and Law Basics

References
Cohn, K. H., & Hough, D. E. (2008). The business of healthcare. Westport, Conn: Praeger.
Contandriopoulos, D., & Brouselle, A. (2010). Reliable in their failure: An analysis of
healthcare reform policies in public systems. Health Policy 95(2/3), 144-152.
Curran, W. J., & Curran, W. J. (1998). Health care law and ethics. New York: Aspen Law &
Business.
Hogue, L. L. (1980). Public health and the law: Issues and trends. Rockville, Md: Aspen Systems
Corp.
Kessler, D. (2011). Evaluating the medical malpractice system and options for reform: Journal of
Economic Perspective. 25(2), 93-110.
Teitelbaum, J. B., & Wilensky, S. E. (2013). Essentials of health policy and law (2nd ed.).
Burlington, MA: Jones & Bartlett Learning.