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Macro and Micro-Level Health Care Financing
Healthcare financing at the macro and micro levels influence the distribution and utilization of healthcare funds, equipment, products and services. The macro-level financing decisions occur at the institutional and governmental level. These decisions influence healthcare funding, reforms and legislation, regulation and research (Denier, 2007). Private and public institutions interact and consult with each other during the macro-level decision making. Some of the major aspects of healthcare determined at the macro-level include the healthcare reimbursement and payment mechanisms. For example, health insurance providers determine the cost of healthcare services by setting insurance premiums. High insurance premiums lead to high cost of healthcare and vice versa. This relationship determines the ease with which individuals access essential medical services. The government influences healthcare financing through actions such as the subsidization of the costs of drugs, healthcare insurance and medical equipment.
On the other hand, the micro-level financing decisions occur at the individual level. These decisions involve the actions of autonomous healthcare providers in distributing healthcare products and services (Paterson, 2014). Individual practitioners consult with patients in distributing the available healthcare resources. For example, a physician will determine the quality of medical services that a patient will receive through the assessment of the patient and writing of prescriptions. The physician has a significant influence on the allocation and distribution of the healthcare resources allocated by the macro-level decision makers. The macro-level decisions guide the structuring of the healthcare system and create the context within which individual healthcare providers make their decisions. For example, a physician makes treatment decisions in consideration of various healthcare regulations and insurance policies. However, issues regarding the sourcing and distribution of money are mainly the concern of macro-level decision makers. The micro-level decisions are mainly non-monetary.
