U.S. Companies and Health Care Services
Employees’ performances are high relative to their basic pays. Therefore, U.S. companies should pay their employees base pays higher than the market rates as money is easily a motivating factor. Increasing their base pay will make them want to accept foreign assignments and improve their performance. Finally, this will be beneficial to contemporary organizations in industries with intense competition (Bai, n.d.). Money works as the most dominant and important factor in motivating employees.
Health care spending in the United States is highly concerned as it is higher than in any other high-income country. However, efforts targeted towards reforming the U.S. healthcare have influenced regulating health care spending. In 2016, the U.S. had spent about twice as much as 10 high-income countries on medical care and performed less good on many health outcomes (Papanicolas et al. 2018). The main drivers of the significant difference in spending are labor and goods and administrative costs. Putting efforts on utilization alone is unlikely to control the health care spending in the U.S., but a more concerted effort on reducing prices and administrative costs is required.
High labor and administrative costs have given the U.S. a rough edge in competing with other high-income countries. Metrics such as life expectancy and infant mortality have been worse than in other high-income countries, spending less on health care services. International patients, therefore, opt for cheaper but better health care services. Higher health care spending only becomes beneficial if it leads to better health outcomes (Reibling et al. 2019). For the U.S. to compete equally with other high-income countries, it should either improve their services to match the prices or reduce labor and goods and administrative costs.
References
Bai, B. (n.d.) The Impact of High-Performance Work Systems on Knowledge Flows Within the U.S. MNCs http://www.hraljournal.com/Page/4%20Bing%20Bai.pdf
Papanicolas, I., Woskie, L., and Jha, A. (2018) Health Care Spending in the U.S. and Other High-income Countries https://jamanetwork.com/journals/jama/article-abstract/2674671
Reibling, N., Ariaans, M., and Wendt, C. (2019) World of health care: a health care system typology of OECD countries https://www.sciencedirect.com/science/article/pii/S0168851019301083