QUESTIONS FOR ANALYZING PROPOSALS TO CONTROL HEALTH EXPENDITURES

A number of issues must be addressed in examining proposals to constrain expenditures for health care. The questions below are suggested

a general framework for analysis of expenditure control proposals.

as

1) Would the proposal work--does it provide an effective method

of limiting spending?

2) Is the limitation temporary or permanent ?

3) What is the impact of the proposal on providers with various

characteristics (i.e., large hospitals, small hospitals, high cost hospitals, low cost hospitals, etc.)?

4) What is the impact of the proposal on consumers with various

characteristics (i.e., low income, high income, those under governmental programs, those with health insurance, the uninsured, etc.)?

5) What is the impact of the proposal on the quality of services

provided?

6) What is the relationship of the proposal to the general economy?

What is the effect of limiting controls to one sector of the
economy, such as health care, or even limiting only one
of health care, such as hospitals?

sector

7) How would the proposal be administered?

It is currently impossible to answer many of these questions de finitively for the proposals which have been made. Sufficient data are not available, and many are still in the developmental phase or are too recently implemented to begin evaluation. However, the questions can serve as a general framework for analysis and evaluation of proposals to limit the nation's spending on health care.

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