Health Policy Marketplace & Negotiations

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Questions and Answers

In the context of the Health Policy Marketplace, what is the primary outcome of mutually acceptable transactions?

  • Increased competition among healthcare providers.
  • A decrease in the cost of healthcare services.
  • The creation of new healthcare technologies.
  • The establishment of the current health policy in force. (correct)

Which of the following best describes the division of resources in health policy negotiations?

  • Exclusively the distribution of intangible assets like satisfaction.
  • The establishment of cooperative relationships between parties.
  • The allocation of power among competing organizations.
  • Primarily focused on money, products, or services. (correct)

Which characteristic is most indicative of a cooperative negotiation strategy within the Health Policy Marketplace?

  • Short-term focus with immediate gains.
  • Limited resources leading to a single winner.
  • Goal for a fair and reasonable outcome. (correct)
  • Win-lose outcome.

In policy markets, how do the timing of benefits and costs typically compare to that of economic markets?

<p>Policy markets often prioritize immediate benefits with costs deferred to the future. (C)</p> Signup and view all the answers

Within the health marketplace, which entities are typically considered suppliers?

<p>Legislators, executives, and the judiciary. (C)</p> Signup and view all the answers

In the health policy marketplace, which of the following groups is identified as demanders who must be extremely powerful?

<p>Individual people. (A)</p> Signup and view all the answers

What is the basis of legitimate (formal) power within a health marketplace context?

<p>Power derived from one's relative position in a social system, organization, or group. (D)</p> Signup and view all the answers

Which form of power involves the ability to reward others for their decisions and actions?

<p>Reward power (D)</p> Signup and view all the answers

What distinguishes 'expert power' from other forms of power in the health marketplace?

<p>It is based on expertise in specific problems or tasks. (C)</p> Signup and view all the answers

What type of power is associated with engendering admiration, loyalty, and charisma?

<p>Referent power (C)</p> Signup and view all the answers

How can the dynamics within 'Iron Triangles' impact health policy outcomes?

<p>By promoting collaborative decision-making among key players. (C)</p> Signup and view all the answers

Which of the following is true regarding interest groups in the health marketplace?

<p>They have become more fragmented and less powerful. (C)</p> Signup and view all the answers

What is the relationship between lower and higher courts in the judiciary of the health marketplace?

<p>Lower courts &gt; higher courts (D)</p> Signup and view all the answers

What is something examples of health marketplace suppliers?

<p>Legislators (D)</p> Signup and view all the answers

What might be an example of 'quid pro quo' in the health marketplace?

<p>Favors (C)</p> Signup and view all the answers

Flashcards

Health Policy Marketplace

Health policymaking can be viewed as occurring in a marketplace, where suppliers and demanders negotiate to create health policy.

Negotiation Issues

The main issues in health policy negotiations involve the division of resources (money, products, services) and intangible factors like satisfaction and power.

Negotiation Strategies

Cooperative strategies aim for win-win outcomes with fair goals and long-term relationships, while competitive strategies prioritize winning with short-term views.

Economic vs. Policy Markets

Economic markets focus on immediate benefits and costs, while policy markets prioritize long-term gains and political re-election.

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Health Policy Suppliers

Legislators, executives, bureaucrats, boards, public health authorities and the judiciary at both federal, state and municipal levels are suppliers of health policy.

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Health Policy Demanders

Individuals, special interest groups, NGOs, advocacy groups, media, legislators and bureaucrats are demanders in health marketplace.

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Legitimate (formal) power

Power derived from one's relative position in a social system, organization or group. For example, elected/appointed officials, executives, judges, union leaders.

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Reward Power

The ability to reward others for their decisions and actions. Example: Promotions, pay increases and time off.

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Coercive Power

The opposite of Reward power. Power to harm.

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Expert Power

Derived from expertise in solving problems or performing tasks.

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Referent Power

Ability to engender admiration, loyalty and actions from others.

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Iron Triangles

Iron triangles are powerful groups that consist of a Gov't Agency, Legislative Committee, and Interest Groups.

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Study Notes

  • Health policymaking can be viewed as occurring in a marketplace.
  • Suppliers and demanders of health policy are similar to those in economic markets.
  • Completed transactions often result from negotiations between suppliers and demanders.
  • Mutually acceptable transactions in the Health Policy Marketplace result in the current health policy in force.

Negotiations - Main Issues

  • Division of Resources: Typically involves money, products, or services
  • Intangibles: Includes satisfaction, power, effective competition, and fair cooperation.

Negotiations - Strategies

  • Cooperative (win-win):

    • Goal - fair & reasonable
    • Sufficient resources are required.
    • Establishes cooperative relationships.
    • Horizon - long view
  • Competitive (win-lose):

    • The goal is simply to win.
    • There are usually insufficient resources (only 1 winner).
    • Focus on winning now.
    • Horizon – short view

Economic vs Policy Markets

  • Economic Markets:

    • Benefits are received now, and payment is made now.
    • Benefits should equal costs.
    • Establish cooperative relationships (more deals).
  • Policy Markets:

    • Benefits are received now, but payment is made later.
    • Benefit now is much greater than the cost later.
    • Establish relationships to get re-elected.

Health Marketplace - Suppliers

  • Legislators: Federal, State, and Municipal governments.
  • Executives and Bureaucrats: All levels of government, Boards, and Public Health authorities.
  • Judiciary: Judges, courts, and legal precedence, with lower courts having more influence than higher courts.
  • May also be demanders of Health Policy

Health Marketplace - Demanders

  • Individuals: must be extremely powerful (big political capital).
  • Special interest, NGOs, and advocacy groups.
    • Examples: AMA, AHA, AARP, PHARMA, Families USA, PACS.
  • Media.
  • Legislators/Bureaucrats.

Health Marketplace - Types of Power

  • Legitimate (formal) power: Derived from one's relative position in a social system, organization, or group, such as elected/appointed officials, executives, judges, or union leaders.
  • Reward power: The ability to reward others for decisions and actions, often part of legitimate power, including promotions, pay increases, and time off; politically, it equates to favors or quid pro quo.
  • Coercive power: Opposite of reward power; involves the power to harm.
  • Expert power: Derived from expertise in solving problems or performing tasks.
  • Referent power: Ability to engender admiration, loyalty, and actions from others; in politics, it is equated with charismatic power.

Health Marketplace - Iron Triangles

  • Includes Gov't Agency, Legislative Cmte, and Interest Groups
  • Interest Groups are more diverse now.
    • AMA is more fragmented, less powerful
  • "Power corrupts, but absolute power corrupts absolutely". - Lord Acton

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